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Pension Protection Act Vesting
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Pension Protection Act Vesting
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The PPA of 2006 changed the vesting criteria for pension plans to 3 years. Based on this, are employees who were hired prior to (and were not yet vested) and including 2006 and have 1,000 hours for 20
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Pension Protection Act Vesting
posted at 12/23/2008 5:44 AM EST
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Posts: 7
First: 7/3/2002 Last: 9/14/2011 |
The PPA of 2006 changed the vesting criteria for pension plans to 3 years. Based on this, are employees who were hired prior to (and were not yet vested) and including 2006 and have 1,000 hours for 2006, 2007, and 2008 now 100% vested in a DB plan? Our DC plan was already 3 yr, 100% vesting. |
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Pension Protection Act Vesting
posted at 12/23/2008 7:44 AM EST
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Posts: 2146
First: 2/15/2006 Last: 9/14/2011 |
You might want to read through this: http://fuguerre.googlepages.com/PPA.htm#ppa904
I am finding that the employer had a choice between the 3 year cliff or the more spread out vesting. Did your employer choose the 3 year cliff? And based on this article/presentation: http://www.newkirk.com/pdf_forms/pen_text06.pdf it states that the faster vesting is applicable for plan years starting AFTER 2006. But much is going to depend on how your company amended your plan document for the PPA. If you changed your vesting schedule in 2006 to a three year cliff, then you are correct...those with the required hours in 06, 07 and 08 would become 100% vested at your vesting date (usually the end of the year in most plans). |
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