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An employee is hired on November 8, 2005, at age 65. The plan has a seven-year graded vesting schedule and requires one year of service for eligibility. Entry dates are January 1 and July 1 after the service requirement is satisfied. The plan has defined normal retirement age (NRA) as the later of age 65 or the completion of five years of participation. When would this individual reach NRA? Rev. 11/10/05, E-mail Alert 2005-22 The employee will satisfy the one-year service requirement on November 7, 2006, enter the plan on January 1, 2007, and reach NRA on the later of age 65 or when the fifth anniversary of the time the plan participant commenced participation in the plan is satisfied, which in this case is on January 1, 2012. (Note that employees become 100% vested upon reaching NRA.) The plan's actual Normal Retirement Date, when the participant may commence benefits, may be different.
To learn more, call 973-492-1880 or e-mail info@mhco.com. © 2012, McKay Hochman Co., Inc. All rights reserved. |
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