SPHR Human Resources

Answer - D - The Retirement Equity Act did prohibit plans from counting maternity and paternity leaves as breaks in service for participation and vesting purposes.

Key Takeaway: REA lowered, rather than increased, the minimum age requirement for pension plan participation. REA required qualified pension plans to provide automatic survivor benefits and allow for waiver of survivor benefits only with the consent of the participant and the spouse. REA clarified that pension plans may obey certain qualified domestic relations orders requiring them to make benefit payments to a participant’s former spouse without violating ERISA’s prohibitions against assignment or alienation of benefits.