Been with employer 12 years but employer changes 401k plans every 5 or 6 years and sets vesting schedule at 10 years. At the start of each new plan all employees are set at 0% invested, therefore no one has ever been vested. We got a new plan again last year so I'm not vested at all, again. Is this legal what can be done? :mad:

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Originally Posted by JKG

Been with employer 12 years but employer changes 401k plans every 5 or 6 years and sets vesting schedule at 10 years. At the start of each new plan all employees are set at 0% invested, therefore no one has ever been vested. We got a new plan again last year so I'm not vested at all, again. Is this legal what can be done? :mad:

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This is not legal. If they are terminating one plan and starting another everyone covered by the plan would be immediately 100% vested when the plan terminates. If they are simply amending the plan, the same vesting would apply. You can't "un-vest" anyone with a current benefit. The maximum vesting schedule allowable is 6 years. Contact the department of labor and ask them to take action

Thanks for the info. We'll be contacting the dept of labor.

You don't contact the Department of Labor, you contact the IRS. Since a 401K is a tax deferred plan it comes under their purview. I agree with what Jon said. It appears to be illegal. When a plan is terminated, all participants become fully vested immediately.

Do some research on ERISA.