Vesting Schedule shift - FYI

[Guest DottleC2]

As I was converting plans and etc., I pulled an exported plan to one side and ran a couple of _hypothetical_ vesting runs across plan years. The first was a decreased vesting percentage, the second test was a vesting schedule change for a plan containing a terminee who terminated prior to the change.

I should point out here, good or bad, the Term break w/ svce Curr Plan Cat was used. Your mileage may vary.

In both cases, changing the secondary schedule and implementing the schedule change at the participant census level was the solution. Noted that a decrease in percent along the same vesting schedule will not work - the schedule must be changed (fine, compliant).

The first example also worked with an odd percentage, I used 31.28 percent on a 1000 dollar balance and it checked out fine.

The final test was also successful, a participant who decreased in vesting percentage from 80% to 31.28% was enabled by switching to a vesting schedule that was zero percent along the same time line. Please note that there is compliance here because the imputed percent on either schedule will not decrease from year to year. I wanted to see how the percent overrides carry forward, and in what manner, & simple.

I wasn't able to apply any test or audit to various and sundry sources or accounts, just one Employer source, forfeitures in suspense, originating investment, 5 year break, 501 hours to avoid BIS. Standard disclaim here, there are many ways to run this.

A small change found (ours not Relius) was the rounding of the vested amount on reports. A change in formatting of the field was/is probably in order to carry two decimal places. Other than that it looked pretty good. Ver 7.3 SP0

Regards,

Bill