Top heavy vesting

[pbarrett]

We have a client who wants to have the following ps vesting schedule (the plan is not currently top heavy but it is projected to be in appx 4 years):

Start the plan with a 1/20 5 years 100% fully vested

When the plan becomes top heavy, change the vesting schedule for new participants entering to -

2/20 6 years 100% vested.

The plan has fairly high turnover and the client feels the additional forfeitures will help offset minimum top heavy contributions.

Sounds ok to me. Anyone see any problems?