News & Announcements

New Guidance for Employers Managing Pension Obligations for Veterans

Published Tuesday, August 27, 2019 6:25 am



The U.S. Department of Labor’s Veterans’ Employment and Training Service (“VETS”) has released a fact sheet to help employers better understand their obligations to reemployed service members under the Uniform Services Employment and Reemployment Rights Act (“USERRA”).

USERRA encourages service in the uniformed services by eliminating or minimizing the disadvantages to civilian careers and employment.  USERRA requires employers to reemploy an eligible returning service member into the position and benefits the service member would have had, with reasonable certainty, if not for the military service.  Employers are required to determine a reemployed service member's eligibility for participation in a pension plan and the vesting and accrual of the service member's pension benefits as if the service member had not left for military service.

The VETS USERRA Fact Sheet #1 provides questions, answers, and examples for employers and employees regarding the application of USERRA to employers that pay pension benefits.  For example, does an employer need to make contributions to an employee’s pension while the employee is absent from work for military service?  What are an employer’s obligations to make pension contributions for an employee who has missed contributions during military-related absence?

According to VETS Deputy Assistant Secretary Sam Shellenberger, "Ensuring our service men and women enjoy the appropriate rights and benefits of their civilian employment on their return from duty encourages future service and provides for the security of our nation.”

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