Vesting Rights for Employee on Military Leave

[Guest Mike Schwing]

An employee left the company to serve in the Armed Forces in Iraq. The company policy is to continue to pay the employee at their regular rate while they are serving. The employee is eligible for the 401(k) and was contributing to the 401(k) before leaving for military service. Should I continue to withhold and contribute to the 401(k) plan while they are in the armed services since I am paying their salary anyway? They have not worked for the company at all in 2003, should their vesting increase for 2003 plan year becuase I am paying them?

[ccassetty]

Have you tried your local DOL VETs office, they should be able to help you.

Look here for contact information for your local office:

DOL