Course: Employee
Benefits Law: LGL-558-2002
Assignment: Assignment
2
George
Jotson, sole shareholder and chief executive officer of Orbital
Sprockets Incorporated, wanted to develop a qualified pension and
profit sharing plan for his 1,250 employees. Of the 1,250 employees,
only 30 employees earned over $100,000 in 2016. Jotson was concerned
with high turnover in the manufacturing plants and so he wanted to
restrict plan participation. Orbital’s qualified pension plan has
the following requirements:
·Minimum
plan entry age of 35.
·Minimum
plan waiting period of two years.
·Plan
vesting should be immediate
·Plan
participation should be limited to employees who earn over $100,000.
Rosa
Singleton, age 28, has been an employee of Orbital for the last 6
years. She earns $50,000 a year but wants to participate in the
pension plan. When she is told she does not qualify, she sues
Orbital.
Part
1: Discuss the issues and determine how a court is likely to rule.
Part
2: What advice would you give Mr. Jotson? Please write a letter
outlining your proposal.
Please cite appropriate authority
for all statements of law.
An
IRAC-style essay is NOT necessary for this assignment.
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