Changing vesting

[Guest The Pension Kid]

I've never been asked to change a vesting schedule until now.

My plan currently has a 5-year cliff. They asked what might happen if they changed to a 10-year cliff. I'm not really sure what would happen, although, I'm sure the ramifications are big. Could anyone advise me on this?

[Guest The Pension Kid]

OK... I figured out that the 10-year cliff vesting option is no longer availible and that the "max" allowed is 5-year cliff or 7-year graded (3/20)...unless the plan is Top Heavy, then it's 3-year cliff or 6-year graded (2/20).

Sorry if I wasted anyone'e time.

[Tom Poje]

the only rule you have to worry about is that anyone with 3 years of service must be given the opportunity to remain under the old vesting schedule. many moons ago it probably made a bigger difference (e.g. when you had a lot more vesting schedules, ah the gory years of 'rule of 45' or whatever that was called)