Forfeitures -- More generous?

[Guest wwest]

Plan has a 5 year vesting schedule. Plan partially terminates and participants from that date are fully vested. May plan be more generous by fully vesting a handful of people before the partial termination date? Violations of any rules?

[david rigby]

Yes the plan can be more generous, but watch out for non-dsicrimination issues. That is, if you go back a few days just to pick up an HCE, you might have a problem.

Actually, sometimes, what is the "event" may be easy to identify but when may not be. In such cases, picking a date for 100% vesting at the beginning of the time period will usually cover it. But if your "when" is readily identifiable, going back before that may not be a good idea because you may have set a precedent which has no real basis in fact.