This CB plan was effective 1/1/2004 so the 3-year cliff vesting requirement must be effective for plan years commencing 1/1/2008 and forward. Does this apply to only accruals from 1/1/2008 going forward? And the accrued benefit through 12/31/2007 remains on the old schedule? For example, an employee is hired 1/1/2005. The plan originally had a 6 year graded schedule. At 1/1/2009 would he be 60% vested (2005, 2006, 2007, and 2008)? Or would he be 100% vested in the entire benefit because he now has 4 years of vesting service? Or is he 60% vested in his benefit through 12/31/2008 and 0% vested for the benefit he accrued during 2008?

New vesting schedule applies to the entire accrued benefit of anyone who worked more than 1 hour after 1/1/2008.

You can't have different vesting schedules for different pieces of benefit.

3-year cliff is not required for DB plans, so I would agree that your accruals would apply only one vesting schedule.

However, you can have different vesting schedules apply to different DC plan $$ as a result of PPA--i.e., a new PPA '06 vesting schedule is only required to apply to new $$: " . . . the amendments made by this section [of PPA '06] shall apply to contributions for plan years beginning after December 31, 2006." For CBAs, the rule is: " . . . the amendments made by this section shall not apply to contributions on behalf of the employees . . . for plan years before the earlier of . . ." AA checklists usually give a choice in how a new PPA vesting schedule will apply (i.e., only to new $$, or to all $$).

Of course, all vesting years of service considered under the plan still would be counted (both before & after the effective date of the change).

It IS required for cash balance, and other "applicable defined benefit plans".

Correct, as mentioned in the first post this is for a Cash Balance Plan. So if a participant had 4 years of vesting service - 2005, 2006, 2007 and 2008, at 1/1/2009 they should be 100% vested, correct? Regardless of the prior vesting schedule.

Would not that be @ 1/1/2008?
PPA section 701(e)(3).

I agree with David - 1/1/2008