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Author: mwyattea Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 74759  
Subject: Re: Vesting Schedules Date: 5/10/2001 10:17 AM
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I don't know what your vesting schedule was, but I would venture that it looked like this:

Under 3 Years of Service: 0%
3 Years of Service: 20%
4 Years of Service: 40%
5 Years of Service: 60%
6 Years of Service: 80%
7 Years of Service: 100%

Assuming new bill goes through, your employer would need to amend the schedule to look like this, effective with the plan year beginning in 2002:

Under 2 Years of Service: 0%
2 Years of Service: 20%
3 Years of Service: 40%
4 Years of Service: 60%
5 Years of Service: 80%
6 Years of Service: 100%

So technically, you are not getting an extra Year of Vesting Service, you are just using a new schedule (although the effect is the same as you are just advancing a year on your old schedule).

This amendment would apply to all employees, old and new. Technically, when you have an amendment to a vesting schedule, employees with 3 or more Years of Service at the time of amendment have the right to elect to stay on the old schedule (really more of a factor when a vesting schedule was being downgraded). Of course, in the case where the new amendment is more favorable at every step of the way, the assumption made by plans and the firms administering the plan is that noone would elect to stay on a worse schedule;).

As far as the pre-plan service goes, is this a new plan? Look to your Summary Plan Description which should outline the rules for vesting. There should be a statement in there that pre-effective date (not pre-entry) service is being excluded. Also, were you part of a prior company that was acquired by another company? There might have been a decision in your new company plan that you would be treated as a new employee at the date of acquisition. More detail would be helpful here. But ordinarily, you cannot exclude pre-entry service in an ongoing plan for vesting purposes.
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