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Construction company, employees terminating then coming back.


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Posted

New plan last year.  Getting a feel for the business.  

2 employees have recently terminated.  The office manager said that sometimes these guys quit but come back later.  Plan is a SH match. Payout is immediate.  I can make sure they are whole with regards to the SH match so their payout is complete and final.  But what if they come back?  

There would be no forfeiture because it's a SH plan and everything is 100% vested
They could put their money back if it is within 60 days (right?)
If they come back before a year has passed there is no break in service so they would be back in.  

Am I good with regards to my understanding? 

Thanks

Posted

You might consider what “sometimes”means. If there is a revolving door with enough people going out and back in  within short intervals, immediate distribution might be problematic, or at least the optics raise questions. Rather than live a life subject to the whims of circumstances and intent, a change in plan design or reemployment policy may be warranted. Industry standards and practices would be relevant.

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