Santo Gold Posted August 20, 2008 Posted August 20, 2008 Can a new PS-only plan have a 5 year cliff vesting or does PPA require no worse than a 3 year cliff? Thanks
Guest Sieve Posted August 20, 2008 Posted August 20, 2008 3-year cliff or 6-year graded (2-6 yrs, 20-100%). The new accelerated vesting schedules (i) are required to apply only to those with an hour of service on or after the effective date, and (ii) are required to apply only with regard to contributions for plan years beginning on or after the effective date. The effective date is for plan years beginning on or after 1/1/07.
david rigby Posted August 20, 2008 Posted August 20, 2008 Correct. See PPA section 904. Special rule for certain ESOPs. I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
Guest Sieve Posted August 20, 2008 Posted August 20, 2008 . . . and special effective dates for collectively-bargained plans.
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