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Amendment to Change Vesting. Which schedule does a new participant follow?

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We have a 401k/PS plan that provided 100% vesting for Employer discretionary PS contributions.  When we prepared the cycle 3 restatement, we included a change in that vesting schedule making it 2-6 graded. The restatement was effective 1/1/2021 and the employer signed it 4/15/2021.  Eligibility requirements are 1 yos/21 yoa and 1/1 7/1 entry dates.   One employee hired 1/21/2020, so met eligibility at 1/21/2021 and entered the plan 7/1/2021.  Does this participant have to be 100% vested following the pre amendment provision or is he subject to the amended graded schedule since he did not become a Participant until after the later of the restatement's effective date or adoption date?

The plan document makes reference to an Employee who is a Participant as of the later of the date such amendment is adopted or the date it becomes effective being required to have his Vested interest as of such date not less than it would have been without regard to such amendment.

Thank you

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On 5/11/2022 at 9:08 AM, Bri said:

They would be on the new schedule, since they weren't a participant yet as of when the vesting formula changed.  Much as coffee is for closers, vesting is for participants.

Put.  The vesting.  Down!

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