Nondiscrimination rule

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 ?
Department of Health and Human Services, which proposed the nondiscrimination rule in May, referred questions about the lawsuit to the Department of Justice.
Under these circumstances, adopting a very general or ambiguous nondiscrimination rule today constitutes an attractive compromise, since the controversial question is not decided one way or the other.
That said, a nondiscrimination rule is not the only way for the FCC
Following the first literature review by SCHUETT (2010), we can identify two main orientations for defining network neutrality within economic analysis: the zero-price rule and the nondiscrimination rule.
The Article contends that, when these interaction effects are understood, a nondiscrimination rule applied only to a converged carrier's Internet service can be rendered ineffective by the carrier's move to managed services offerings.
Life insurance coverage equal to the same percentage of compensation for all participants will not violate the benefit nondiscrimination rule.
Assuming one could demonstrate monopoly power in the access market, a more sensible nondiscrimination rule would be to require that carriers charge different content providers the same rate for any given enhancement of QoS, not to prevent any charges for enhanced QoS whatsoever.
Even before President Clinton signed "Don't Ask, Don't Tell" into law as a compromise in 1993, the American Association of Law Schools added sexual orientation to its nondiscrimination rule, prompting law schools to refuse interview access to all employers who discriminate on that basis.
106) The FCC's draft nondiscrimination rule in the Open Internet proceeding is an example of this type of approach.