Break in Service Rule

[Guest TPA Guy]

I know that a plan could have a 5 year break-in-service rule but can they have a 10 year break in service rule?

[Jim Chad]

My Instinct says yes. I will be interested to hear what others think?

[ETA Consulting LLC]

With respect to what? I would say yes with respect to reemployement for zero vested, but "may" have an issue with forfeiture timing (the time non-vested amounts are actually removed from the participant's account). We do know the document must govern. Not sure if a letter would be issued stating a participant will not be forfeited until 10 consecutive one-year breaks in service. We do know that you don't have to use the rules of parity with respect to retaining service upon reemployment.

Good Luck!

[Guest TPA Guy]

Thanks for the responses! That's a good point about the money that was forfeited! Something else to think about