[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:

[jonkahler]

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:

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

[JKG]

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

[ScottGem]

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.