Plan Properly Excluded Severance Payment From Pension Benefit, Judge Says

Plan Properly Excluded Severance Payment From Pension Benefit, Judge Says

PROVIDENCE, R.I. - A retirement plan did not abuse its discretion under the Employee Retirement Income Security Act by excluding a severance payment from a participant's earnings for purposes of calculating the participant's retirement benefits under the plan, even though the employer considered the payment as earnings for tax withholding purposes, a federal judge in Rhode Island ruled May 23 (Gary Chapman v. Supplemental Benefit Retirement Plan of LIN Television Corporation and Subsidiary Companies, et al., No. 09-518, D. R.I.; 2012 U.S. Dist. LEXIS 71484).

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