erisagal
Sep 1 2006, 11:56 AM
Is a plan required by law, unless otherwise provided by contract, to credit interest on pick up contributions of a participant prior to the particpant becoming vested in a pension benefit under the plan? Participants who terminate employment prior to becoming vested and withdrawal the monies, to include interest can receive a hefty payout...taking the interest with seems to erode the funding position of the plan and therefore not in the best interest of the plan. Any thoughts?