ABA Family Legal Guide

The Rights of Older Americans

Pensions

Traditional Pension Plans

Can my employer change an existing pension plan?

Yes. Employee Retirement Income Security Act (ERISA) permits an employer to change the way in which future benefits are accumulated. However, the employer may not make changes that result in a reduction of benefits that you already have accrued. In addition, ERISA specifically prohibits plan amendments that alter vesting schedules to the detriment of employees.