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George Jotson, sole shareholder and chief executive officer of Orbital Sprockets Incorporated, wanted to develop a qualified pension and profit sharing plan for his 1,250 employees. Of the 1,250 employees, only 30 employees earned over $100,000 in 2016. Jotson was concerned with high turnover in the manufacturing plants and so he wanted to restrict plan participation. Orbital’s qualified pension plan has the following requirements:
·Minimum plan entry age of 35.
·Minimum plan waiting period of two years.
·Plan vesting should be immediate
·Plan participation should be limited to employees who earn over $100,000.
Rosa Singleton, age 28, has been an employee of Orbital for the last 6 years. She earns $50,000 a year but wants to participate in the pension plan. When she is told she does not qualify, she sues Orbital.
Part 1: Discuss the issues and determine how a court is likely to rule.
Part 2: What advice would you give Mr. Jotson? Please write a letter outlining your proposal.
Please cite appropriate authority for all statements of law.
An IRAC-style essay is NOT necessary for this assignment.
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