Employer Matching Vesting Schedule under EGTRRA

[stephen]

During the ASPA webcast in the chatroom the following question was asked and the response was given at a later time:

Do the new vesting schedule apply only to matching contributions made after 12-31-01?

Yes, only to contributions made after that date.

My understanding was that for anyone who worked at least one hour during 2002 the new minimum vesting schedule (3 year cliff or 6 year graded) would apply to ALL employer matching contributions in the plan (existing, current and future contributions).

What do other people think?

[MGB]

No need to get opinions.

The law is very clear that the new schedule only applies to new matching "contributions for plan years beginning after December 31, 2001." (With a delayed effective date for collectively bargained plans.)

[stephen]

Thank You again MGB.