Incorrect vested balance on reports

[Tom Poje]

first, this is how Qtech calculates vested balance.

Ending balance + prior distributions

multiply by vesting percentage

this is ees vested balance (as if he hasn't received a distribution)

then system subtracts distribution actually received.

Any difference is remaining distribution.

If ee has forfeited money, system is not smart enough to add that back into the equation, so things get messed up.

Possible workaround would be to enter distribution as a positive number in prior yr distribution field via DER.

This will 'negate' the distribution, so like the forfeiture it will be ignored.

Since you are running confirmation required, that implies share accounting, and therefore compounds the problem.

Again, the real problem is the forfeitures. they don't get readded to the equation.

example:

ee has balance of 1000, is paid 700 so ending balance is 300.(someone goofed)

system calculates as follows

end balance = 300

distribution= 700

toatl = 1000

vested at 80% or 800.

has been paid 700, so vested balance is 100.

printout shows ending balance 300, 80% vested, but vested balance = 100.

That actual maked sense, but looks extremely funny.

If forfeitures were involved, the numbers really get messed cuz system ignores them.

hope that helps.

[Guest m thom]

I am having a problem getting correct vested balances for certain participants. The problem seems to occur only with terminated EEs who have received a distibution.

For example, suppose an 80% vested EE terminates on 2/10. At 3/31 I do a valuation. I enter a distribution transaction dated 4/1 and confirm it. I then change the person's status to "terminated and fully paid out" and process the forfeiture.

After doing this, I print out the 3/31 Summary of Accounts. I can produce two different vested balances for this EE, depending on whether I have entered his status as "terminated" or "terminated and fully paid out." If the status is "terminated," QT reports the 3/31 ending balance as the vested balance (as if he were 100% vested). If I change the status to "terminated and fully paid out," QT reports the participant's 3/31 deferrals balance as the vested balance.

Neither balance is correct. Is this some kind of QT quirk, that you can't get accurate vested balances for prior periods once you have done someone's distribution and forfeiture? I have a call in to QT tech support on this, but I would appreciate any input you all might have. Thanks.

[Guest Sue Michalski]

This was a problem with us as well. Ppt who termed in 1998 and were paid and forf'd out. BUT, possibly received a contribution at year end. 1998 and 1999 vested balances for this person are negative. I created a DER for prior distributions (UNITS) and -0- out the number. This does not effect my dollars but seems to solve my neg vested problem, and allows me to do a 2nd payout.