How much to forfeit - Forfeiture Break in Service

[MarZDoates]

Participant has terminated employment and has incurred five one year breaks in service, but has not taken a distribution. Not fully vested.

Document says forfeiture occurs: the earlier of a forfeiture break (the last day of the vesting computaton period in which the participant first incurs a forfeiture break in service) or cash out.

If the forfeiture break occurs on 12/31/14, do we forfeit an amount based on the value on that date? Or would it be based on the current value?

Example: Value on 12/31/14 is $100,000. Forfeiture is 80% or $80,000.

Value as of today $105,000 times 80% is $84,000.

If the actual forfeiture transaction occurs today, do we forfeit $80,000 or $84,000?

Thank you.

[BG5150]

Current value.

Is this a DB plan? How can someone amass $100,000 and be only 20% vested?

[MarZDoates]

No. I just made up numbers as an example.

[ETA Consulting LLC]

As of today, he's only 20% vested in whatever the balance is. So, you'd forfeit 80% today; leaving him 100% vested in the remaining balance.

Good Luck!