Break in Service Vesting

[Guest ghenson08]

Is there any situation where someone could "lose" their prior break in service vesting after being gone for so long? For example (3 year cliff vesting and 5 year BIS):

DOH: 06/01/1998

DOT: 07/01/2003

Rehired: 03/01/2013

This person would be 100% vested when termed, is gone for almost 10 years. Would this person be 100% vested at rehire since they were 100% vested at term or does the clock start over since they were gone for longer than 5 years?

[Guest ghenson08]

Can anyone also tell me if there would ever be a way to exclude that prior service? Does a plan have to specifically adopt the rule of parity?

[ESOP Guy]

You are unclear in your question. Did the plan exist when he first worked for the company? If so, did he have a vested balance when he left?

[Tom Poje]

how do you read the IRS notes on vesting service after a break on page 5 of the enclosed?

ok, maybe it is even highlighted, and maybe there are some notes to emphasize some stuff.

minimum vesting standards.pdf

[Guest ghenson08]

how do you read the IRS notes on vesting service after a break on page 5 of the enclosed?

ok, maybe it is even highlighted, and maybe there are some notes to emphasize some stuff.

Makes total sense. Have you ever heard of DC Plan Exclusion Rules? I saw that in a response on a similar question on the discussion boards but couldn't find any materials on it during my research.

[masteff]

I would speculate that would be items covered in Tom's document that can be found by searching for the words "exlude" and "disregard".