ESOP Vesting After Returning

[Bluewing97]

How would venting work for an employee who left after 3 years of service (40% vested) and received a cash payout with the rest being forfeited-but then returns two years later and is allocated new shares for another year and a half of service but then once again leaves the plan

[ESOP Guy]

There is more going on in that question than you might realize.

You would best to go and ask someone at the company to help you through the facts and get the best answer.

Without knowing  how vesting is computed:  Is it elapsed time or do you have to work 1,000/year to get a Year of Service for Vesting?

If it is a 1,000/year plan which is the most common what years (assuming the plan is a calendar year plan) did you work 1,000 hours or more?

 

As a very general rule, and there are a lot of assumptions going on here, I would expect such a person to be 40% vested the day they come back regarding any new money/shares allocated to them. 

Depending on the facts they might have moved up to 60% or 80% vested because of the additional years worked. 

It would fairly rare to see the person reset to 0% upon their return. 

But ONCE AGAIN WITHOUT SEEING THE PLAN DOCUMENT AND KNOWING ALL THE FACTS no one can say for sure. 

If you paid back any of the prior distribution to you that can make the situation more complex but such paybacks are rare. 

So talk to your former employer and have them explain it to you is your best bet.