Vesting change between payouts

[Guest Jennyb473]

I have an annual plan (12/31 pye) that was valued in April 2010 (special valuation) in order to pay out a few terminated participants. One person was paid out his safe harbor (100%) and psp (40%). He was then rehired in August 2010 and terminated again in November 2010, during which time he worked enough hours to accrue another year of vesting. He received more safe harbor and a psp contribution. Now he wants a payout again. His safe harbor is 100% vested but what should he be paid of his psp? Should he only receive 60% of the current balance in the psp source or does his previous payout and forfeiture come into play? We use Relius and it appears on his statement that Relius is trying to pay him almost 80% of his current psp amount - I assume due to the previous forfeitures. I'm battling myself on what is correct. He did not lose any vesting, he was paid appropriately the first time 40% of his current balance. Is that a done deal then and we then move on to the new balance or do we have to factor in that previous distribution as if it never happened? It's not like he repaid the distribution so his forfeitures would be reinstated.

any insight?

[ESOP Guy]

You have to study your document. It is going to tell you how to treat rehired people who forfeited in the past. The plan document is the only way to get the correct answer.