Vesting - Layoff

[52626]

Employer sponsors a QACA with discretionary match.

There will be some layoffs at the end of the month. The layoffs will NOT result in a partial termination.

Client wants to vest this group 100% regardless of their current vesting %.

Question:  Can the plan draft an amendment that will allow the participants in this layoff group to vest 100%?

Thanks

[Lou S.]

Yes. Just test it for BRF to make sure it does not favor HCEs and you should be fine if the amendment is drafted correctly.

[RELUCTANT_LAWYER]

Vesting has its own non-discrimination testing under 1.401(a)(4)-11. This is technically not a 1.401(a)4-4 BRF issue.