Jump to content

Recommended Posts

Posted

The rule of parity applies only to a nonvested participant. I want to be certain I understand what is mean by nonvested participant. If a participant terminates with 60% vesting and receives a full distribution of the 60%, then rehires 15 years later, is he considered a "vested" or "nonvested" participant for purposes of rule of parity? I'm thinking he is a "vested" participant because he was vested at the time he terminated. Is this correct?

If he is a "vested" participant, then rule of parity will not apply to him and he must be given credit for years of service prior to break and be allowed to participate retroactive after meeting 1 year eligibility. Am I correct here?

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...

Important Information

Terms of Use