59. Amendment of vesting schedule

268 | D e f i n e d C o n t r i b u t i o n P l a n L R M P a c k a g e 0 1 / 2 0 2 4

Statement of Requirement: Code § 411(a)(10); Reg. § 1.411(a)-8(c)(1), § 1.411(a)-8T.

Sample Plan Language:

If the plan's vesting schedule is amended, or the plan is amended in any way that directly or indirectly affects the computation of the participant's nonforfeitable percentage or if the plan is deemed amended by an automatic change to or from a top-heavy vesting schedule, each participant with at least 3 years of service with the employer may elect, within a reasonable period after the adoption of the amendment or change, to have the nonforfeitable percentage computed under the plan without regard to such amendment or change. For participants who do not have at least 1 hour of service in any plan year beginning after December 31, 1988, the preceding sentence shall be applied by substituting "5 years of service" for "3 years of service" where such language appears. The period during which the election may be made shall commence with the date the amendment is adopted or deemed to be made and shall end on the latest of:

(4) 60 days after the amendment is adopted,

(5) 60 days after the amendment becomes effective, or

(6) 60 days after the participant is issued written notice of the amendment by the

employer or plan administrator.