Plan Termination with EE contributions

[Hojo]

I have a plan that is terminating that also requires employee contributions.  As we know, ee contributions are always 100% vested and upon plan termination all benefits are 100% vested.  The total benefit for the plan is 2% of average comp (which includes the ee contributions).

Assuming 5 year cliff vesting, I have a participant who terminated in 2008 with 2 years of service who had made employee contributions.  Upon plan termination in 2018, the employee contributions remained in the plan.  Do we have to restore the 2 years of service accrued benefit to pay out upon termination or do we assume that the nonvested portion was paid out since we have a BIS?

[Calavera]

I believe plan owes him EE contribution with interest only, unless it was already paid out in 2008.

[Hojo]

It was not yet paid out.  If it was, then I think it's pretty straightforward in that he is due no further benefit.

[CuseFan]

The non-vested benefit would have/should have been forfeited after 5 consecutive one year breaks (but check and confirm plan provisions - always). If re-employed, I believe the employee would have been entitled to the prior two years of service because he did have some nonforfeitable benefit (the employee contribution portion), but that would not change the prior forfeiture as post-break service would not impact vesting on pre-break benefit (again, check your plan language). I don't see how a plan termination would reinstate the forfeited benefit. Also, just because in the plan's database you may still have been carrying the non-vested benefit doesn't mean that it's not forfeited - it is or isn't based on plan terms, not record keeping practices.