Vesting after a Break In Service

[Lori H]

A participant terminated in 2001 with 100% vesting and was paid out of the plan. He returned to work for the company in 2011. Are all of his YOS included for vesting? Thanks.

[Tom Poje]

the IRS publication for Minimum Vesting Standards (page 6) states

Thus, in the case of a participant with a nonforfeitable

interest at the time of separation, the length of the break

in service is irrelevant with respect to counting pre-break

service for the percent of vesting in post-break account

balances upon reemployment

emphasis mine

[Lori H]

Thanks for the link. in short, yes the participant would be 100% vested, is how I interpret the language.