Distrib. -- Forfeit -- Rehire

[R. Butler]

Participant Terminates receives a distrib. @ 20% vesting. Forfeits the other 80% at payout. Rehired the same year; works 1,000 hours in the plan year, gets a profit share contrib. but no forfeiture restoration. Obviously the 1,000 hours bumps his vested % to 40%. In calculating the vested balance Relius is including in additional 20% from the forfeited amount.

Example:

Balance @ 01/01 is $4,000, 20% vested. Payout at 05/01 is $800. Rehired 07/01, works 1,000 hours from 01/01-12/31; gets contrib. of $2,000. At 12/31 participant is 40% vested. Relius says vested balance is $1,600 ($800 of the $2,000 plus an additional 20% on the $4,000 ($800)). Is that correct? At first blush it seems nonsensical that participant would get additional vesting on amounts previously forfeited & not restored.

[Archimage]

It is the way Relius does its vesting calculation. Go to the corbel website and go to the FAQ section. It will tell you how to correct this.

[R. Butler]

Thanks for the tip. I found the FAQ. I'm not sure I clearly understood the suggestion, but I was able to use the suggested Census DER to get the result I wanted this year. We shall see how that affects next year at a later date.

Thanks again.