Vesting Breaks in Service

[Nassau]

The measuring period for vesting is the Plan Year. The Plan Year means the 12-consecutive month period which coincides with the adopting employer's tax year . Year of vesting service is 1,000 hours of service (actual hours).

Once the participant was rehired last year what should have been the participant's vested percentage?

I am trying to figure out the vesting for one of our employees who was rehired last year:

2001 – worked less than 1000 hours (original hire date – 9/10/2001)

2002 – worked more than 1000 hours (0% vested)

2003 – worked more than 1000 hours (20% vested)

2004 – worked more than 1000 hours (40% vested)

2005 - worked more than 1000 hours (60 % vested)

2006 - worked less than 1000 hours (employment ended – 6/9/2006))

2007 – not employed

2008 – not employed

2009 – not employed

2010 – not employed

2011 – worked less than 1000 hours (rehired 7/10/2011)

2012 – worked more than 1000 hours (DOES HE NEED TO START FROM 0% VESTING?)

[ETA Consulting LLC]

He is 80%. You lose vesting service under the rules of parity "ONLY" if you were zero vested. Since he already had 60%, then vesting would never reset under that plan.

Good Luck!

[GMK]

Check the plan document section on vesting.

I would guess that it will say that you count all years of service, including those from before the rehire, for determining vesting after rehire.

You likely do not count service after the rehire in determining vesting prior to the rehire, but that probably doesn't matter here.