ABA Family Legal Guide

The Rights of Older Americans

Pensions

Traditional Pension Plans

Can my company's pension plan cover some employees but not others?

Yes. Some companies establish pension plans only for certain kinds of workers. A plan might cover assembly line workers, for example, and not file clerks. There might or might not be a separate plan for the clerks. But a plan cannot discriminate against employees who are not officers, shareholders, or highly compensated. For example, a supermarket's plan could not include only the company's president and top executives while excluding the managers, baggers, and cashiers. The Internal Revenue Service determines whether a plan is complying with these complicated nondiscrimination rules.