Normal Retirement Age and full vesting

[Guest RACHELP]

Plan participant turns 65 and terminates with less than 100% vested. Plan's definition of Normal Retirement Age is later of 65 or 5th anniversary of plan participation.

Does this plan participant ever become fully vested? DC Plan.

[david rigby]

You may have answered your own question. Plan definition, as long as it meets the minimum requirements of the law, is the controlling reference. So, determine

- what is the exact defintion,

- what is the exact date of participation, and

- what is the exact date of termination of employment.

[Guest RACHELP]

You may have answered your own question. Plan definition, as long as it meets the minimum requirements of the law, is the controlling reference. So, determine

- what is the exact defintion,

- what is the exact date of participation, and

- what is the exact date of termination of employment.

Ok - if participants turns 65 7/1/04 and quits 1/1/05, and the 5th anniversary of participation is 1/1/06, it would seem NRA is 1/1/06. Does it matter that participant is not employed on 1/1/06? The document is not clear as to whether or not the participant must be employed on his normal retirement age.

Thanks for your help

[david rigby]

It seems unlikely that the plan document will award vesting to those no longer employed. Perhaps a closer reading will reveal this.