Short plan year vesting

[pmacduff]

ok - I know short plan year vesting credits have been reviewed before.

This relates to anyone who is not yet a participant when the short plan year occurs. For example, off calendar plan PY ends 10/31/2012. I'm hired 01/01/2012. Short plan year is 11/01/12 - 12/31/2012. Let's say for argument sake that I worked 1000+ hours from Feb - Oct 2012 and with the plan year & entry date change I enter the plan as of 01/01/2013. Do I get the "extra" vesting credits that active participants realize for the overlap period of the short PY if I continue to work (and over 1000 hours each 12 mos)?

I believe that vesting credits/vesting periods are a separate issue from eligibility and that an employee can be earning vesting credits prior to participation (of course depending on the Plan Doc). Someone else has opined that they believe the short plan year has no effect on the vesting calcs for the person who was not yet a participant when the short plan year occured.

[ETA Consulting LLC]

I believe that vesting credits/vesting periods are a separate issue from eligibility and that an employee can be earning vesting credits prior to participation (of course depending on the Plan Doc).

Me too! The plan document should adequately adhere to the Regulations on vesting; which provides for very limited periods of employment which may be excluded for vesting purposes (i.e. Service before age 18 or Service before the establishment of the plan).

Good Luck!