We have a client who wants to have the following ps vesting schedule (the plan is not currently top heavy but it is projected to be in appx 4 years):
Start the plan with a 1/20 5 years 100% fully vested
When the plan becomes top heavy, change the vesting schedule for new participants entering to -
2/20 6 years 100% vested.
The plan has fairly high turnover and the client feels the additional forfeitures will help offset minimum top heavy contributions.
Sounds ok to me. Anyone see any problems?