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Posted

I need some assistance determining the Vesting Percentage for a former Employee, please.  This client has revolving door of employees and sometimes makes determining what service qualifies for vesting a little complicated and need some help in making sure I am counting vesting service correctly.

The employee in question has Original Date of Hire was 6/25/2014 and he worked 1,000 hours in 2014.  He termed in January, 2015 and was Re-Hired in November, 2016 so neither of 2015 or 2016 plan years did he work the 1000 hours. He termed on 5/20/2017 having worked his 1,000 required hours for the year 2017.  He was Re-Hired on 9/18/19 but worked less than the hours required during the remainder of 2019.  Now he has termed again on 7/1/2023. I believe he gets vesting service credit for 2014, 2017, 2020, 2021, 2022 and 2023.  Does that sound right?  

Posted

From your post I'm assuming plan counts vesting years of service as (calendar years / plan years) with 1000+ hours.

Looks like he has 1000+ in: 2014, 2017, 2020, 2021, 2022 & 2023 from the wording in your post so 6 years.

Doesn't look like he has any 5 year Break in Service so even if you are using the BIS rules there doesn't look like any service to toss.

Posted

I would first confirm if this is an hours requirement vs elapsed time method for service and vesting and is your vesting schedule cliff or graded? 
If said participant  worked 1000+ hours in the Plan year for 2014, 2017, that is for sure 2 years of service. 
Depending on other items, did the participant take a distribution? This will likely impact if they have a match or profit sharing contributions. They might have forfeited funds and if are fully vested, might not be showing depending on the Plan setup. 

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