61. Optional vesting schedules must be at least as favorable as the applicable minimum…

Statement of Requirement: IRC 411(a)(2), IRC 411(a)(13)(B), and IRC 416(b) (1); Notice 2007-6.

Document Provision: _____

(Note to reviewer: If the plan allows for vesting schedules other than those provided in the Code (i.e. IRC 411(a)(2) for regular schedules and IRC 416(b)(1) for top-heavy schedules; see LRM #73), the optional schedules must be at least as favorable as the statutory schedules. For Cash Balance plans, IRC 411(a)(13)(B) requires an employee who has completed at least 3 years of service to have a nonforfeitable right to 100 percent of the employee’s accrued benefit derived from employer contributions.)

(Note to reviewer: For any participant for whom all or a portion of the benefit is

147 | Defined Benefit Plan LRM Package 06/2026

determined under a Cash Balance Formula, the vesting schedule must at all times be at least as favorable as three-year cliff vesting at all points in a participant’s vesting computation. This rule applies to the entire benefit of such a participant, even if a portion of the benefit is not determined under the Cash Balance Formula.)