Plan participant turns 65 and terminates with less than 100% vested. Plan's definition of Normal Retirement Age is later of 65 or 5th anniversary of plan participation.
Does this plan participant ever become fully vested? DC Plan.
Full Version: Normal Retirement Age and full vesting
You may have answered your own question. Plan definition, as long as it meets the minimum requirements of the law, is the controlling reference. So, determine
- what is the exact defintion,
- what is the exact date of participation, and
- what is the exact date of termination of employment.
- what is the exact defintion,
- what is the exact date of participation, and
- what is the exact date of termination of employment.
QUOTE (pax @ Jan 3 2006, 05:47 PM) 
You may have answered your own question. Plan definition, as long as it meets the minimum requirements of the law, is the controlling reference. So, determine
- what is the exact defintion,
- what is the exact date of participation, and
- what is the exact date of termination of employment.
- what is the exact defintion,
- what is the exact date of participation, and
- what is the exact date of termination of employment.
Ok - if participants turns 65 7/1/04 and quits 1/1/05, and the 5th anniversary of participation is 1/1/06, it would seem NRA is 1/1/06. Does it matter that participant is not employed on 1/1/06? The document is not clear as to whether or not the participant must be employed on his normal retirement age.
Thanks for your help
It seems unlikely that the plan document will award vesting to those no longer employed. Perhaps a closer reading will reveal this.
This is a "lo-fi" version of our main content. To view the full version with more information, formatting and images, please click here.