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Nondiscrimination Rule
(redirected from Non-Discrimination 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.



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Lacking Firm Analytical Footing, FCC's Non-Discrimination Rule Likely to Have Significant Unintended Effects on Consumer Welfare WASHINGTON, March 24 /PRNewswire-USNewswire/ -- The Federal Communications Commission's recently proposed "non-discrimination" principle is incompatible with established definitions of discrimination in the economics literature and communications jurisprudence according to a new law and economic analysis released by the Phoenix Center today.
The Employee Retirement Income Security Act (ERISA) is the granddaddy of federal regulations and sets a wide range of standards and rules for both health and retirement employee benefit plans, including non-discrimination rules and fiduciary responsibility.
The regulations also affect company pension schemes by implying a non-discrimination rule into all schemes.
 
 
 
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