Form 5624 - Employee Benefit Plan Defined Benefit Plans Minimum Vesting Standards

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Employee Benefit Plan
Defined Benefit Plans Minimum Vesting Standards
(Worksheet Number 2A – Determination of Qualification
The technical principles in this worksheet
INSTRUCTIONS – All items must be completed. A “Yes” answer generally indicates a
may be changed by future regulations or
favorable conclusion is warranted while a “No” answer indicates a problem exists. Please use
guidelines
the space on the worksheet to explain any “No” answer. See Document 6390, Explanation
Name of Plan
Number 2A, for guidance in completing this form.
I.
Years of Service and Breaks in Service
Plan Reference
Yes No N/A
Note—Questions g.-k. do not apply to plans that use hours of service as a basis for
determining service for vesting purposes. Questions a.-f. do not apply to plans that
use the elapsed time method of determining service. Questions l.-p. must be
considered for all plans.
a.
Does the plan designate a “vesting computation period”? [2002]
b.
Is an employee required to complete no more than H hours of service during
the “vesting computation period” to be credited with a year of service? [2003]
c.
Does the plan credit hours of service in accordance with Department of Labor
(DOL) Regulations? [2004]
d.
If the plan credits hours of service for periods when no duties are performed,
does the plan incorporate, in its own words or by reference, the rules for determining
and crediting these hours? [2005]
e.
Is a “break in service” defined as a vesting computation period when the
employee is not credited with more than B hours? [2006]
f.
Does the plan credit service to the appropriate computation period in order to
avoid a break in service for employees on maternity or paternity leave? [2007]
g.
Does the plan credit an employee with a period of service, beginning no later
than the employment commencement date and ending no sooner than the
severance from service date? [2008]
h.
Does the plan determine an employee’s total period of service by aggregating
all individual periods, unless the periods of service may be disregarded under the
rule of parity? [2009]
i.
In determining an employee’s period of service, does the plan take into account
certain periods of severance? [2010]
j.
Is a 1-year period of severance defined as a 12-consecutive-month period
beginning on the severance from service date and during which the employee does
not perform an hour of service for the employer? [2011]
k.
Is the first period of severance ignored to the extent that such period is
attributable to maternity or paternity leave? [2012]
l.
Are all years of service counted for vesting purposes, except as provided in
Internal Revenue Code section 411(a)(4)? [2013]
m. Are years of service with the employer before the participant entered the plan,
including years of service with the employer in noncovered employment, counted for
vesting purposes? [2014]
5624
Form
(Rev. 12-98) (page 1)
Department of the Treasury - Internal Revenue Service
Cat. No. 42699V

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