Guest Ella Posted September 21, 2001 Posted September 21, 2001 Regarding the required vesting schedule change to a minimum of 3-year cliff or 6-year graded by 1-1-2001 (calendar year plan), there is an extension for "plans Maintained under a collective bargaining agreement." We don't know whether that applies to us. We have a single employer 401(k) for non union employees and for the employees of two unions. One of the unions has a 5-year cliff vesting on the match which was subject to bargaining. All other employees have 5-year graded vesting. Nothing else about this plan is impacted by collective bargaining. The plan is not created for a union, but for all employees. Does the extension apply? - Meaning the vesting schedule does not change until the current bargaining agreement expires? Or was this extension meant for Multiemployer plans or some other definition of collectively bargained plan? :confused:
MGB Posted September 21, 2001 Posted September 21, 2001 The extension only applies to employees covered by the collective bargaining agreement. (Yes, this includes your plan...but only for these employees.) Other employees in the same plan have a 2002 effective date. "...this section shall not apply to contributions on behalf of employees covered by any such agreement for plan years beginning before..."
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