Reference no: EM133720622
Assignment: Pension Plan Eligibility Dispute Case Study
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:
1) Minimum plan entry age of 35.
2) Minimum plan waiting period of two years.
3) Plan vesting should be immediate
4) 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.
I. Part I: Discuss the issues and determine how a court is likely to rule.
II. Part II: What advice would you give Mr. Jotson? Write a letter outlining your proposal.
Cite appropriate authority for all statements of law.
Must include:
• 3 united states cases
• 3 United states statutes.
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