Nondiscrimination rule

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Nondiscrimination Rule

A provision of ERISA that requires employer-sponsored retirement plans to offer the same benefits in the same plans to all employees regardless of position in the company. That is, the nondiscrimination rule forbids employees of different rank from buying into the same plan and receiving different benefits. This protects both low income and high income employees. Plans violating the nondiscrimination rule are not tax deductible.

Nondiscrimination rule.

All qualified retirement plans, including 401(k) plans, must follow nondiscrimination rules. Among other things, the rules prevent highly paid employees from receiving more generous benefits than other employees.

However, employers may offer nonqualified plans to which antidiscrimination rules don't apply. Unlike contributions to qualified plans, contributions to nonqualified plans are not tax deductible.

References in periodicals archive ?
This externality does not justify a strict and costly complete non-discrimination rule, with all the flaws Faulhaber and others have noted, It does, however, suggest potential merit in a less intrusive minimum quality standard that still provides incentives to innovate in order to offer improved quality.
Lacking Firm Analytical Footing, FCC's Non-Discrimination Rule Likely to Have Significant Unintended Effects on Consumer Welfare
The regulations also affect company pension schemes by implying a non-discrimination rule into all schemes.
The non-discrimination rule refers to a regulation where ISPs cannot offer differentiated quality of service to CAPs.
Should the FCC adopt its non-discrimination rule as currently proposed, Drs.
Last year's changes effectively wrote a non-discrimination rule into every pension scheme," said Ms Franklin.
With these four caveats in mind, even a sensible non-discrimination rule of the kind advocated by Professor Peha may not be needed and may not be feasible.
The first EU complaint accused the United States of violating a range of WTO agreements, including a non-discrimination rule which bars members from imposing trade restrictions on some countries but not on others.
That process should begin with eliminating provisions clearly harmful to competition, innovation, and growth in the industry including the fee non-discrimination rule and the mandatory participation rule for airlines which own CRSs.
Moreover, the wholesale broadband access product is the only regulated offer on Telefonica's fibre network and the Spanish regulator does not plan to impose other competition safeguards such as stricter non-discrimination rules.
Ensuring compliance with ACA's non-discrimination rules regarding favoring highly compensated employees in benefits offered,
However, the Equality Act 2010 requires occupational pension schemes to have non-discrimination rules read into them (if they aren't there already).
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