Form 5624 - Employee Benefit Plan Defined Benefit Plans Minimum Vesting Standards (Page 2 of 6) in pdf

Are years of service with other members of a controlled group of corporations, or

Plan Reference

Yes No N/A

with trades or businesses under common control, or with other organizations that

comprise an affiliated service group counted for vesting purposes? [2015]

When the employer maintains the plan of a predecessor employer, does the plan

provide that service with the predecessor is counted as service with the employer?

[2016]

Is service of individuals who are leased employees of any controlled group or

affiliated service group counted? [2017]

II.

Vesting on Separation From Service-Return to Service Without Break in Service

Note-For purposes of determining service under the elapsed time method, a break in

service is a 1-year period of severance.

Does an employee continue to vest, starting at the point in the vesting schedule

where the employee left employment, in both the pre-separation and post-separation

accruals? [2019]

III. Vesting on Return to Service After a Break in Service

If a participant separates from service with a nonforfeitable interest, does the plan

require that, upon re-employment, the pre-break service will be considered for

purposes of determining vested interest in benefit accruals resulting from employer

contributions after a year of service is completed? [2022]

If an employee who has no vested interest from service and is re-employed before

the number of consecutive 1-year breaks in service equals or exceeds the greater of 5

or the number of years of service whether or not consecutive (“Rule of Parity”), does

the plan require that upon re-employment the pre-break service will be considered for

purposes of determining the vested interest in benefit accruals that resulted from

employer contributions after a year of service is completed? [2023]

IV. Contributory Plans-Complete Only if Plan Permits Employee Contributions

(Voluntary or Mandatory)

Is a forfeiture because of withdrawal of employee contributions precluded when

the employee is at least 50 percent vested in the accrued benefits that resulted from

employer contributions? [2027]

If a plan permits a forfeiture on withdrawal of mandatory employee contributions

when an employee is less than 50 percent vested in accrued benefits that resulted

from employer contributions, does the plan provide for restoration of forfeited amounts

on repayment of withdrawn employee contributions plus interest? [2028]

Cash-Outs and Immediate Distributions

For purposes of determining an employee’s accrued benefit that resulted from

employer contributions, does the plan not disregard years of service performed for

which the employee received a cash-out? [2032]

(If the answer is “Yes,”skip to (f).)

If an involuntary cash-out, must the employee receive a distribution of the present

value of the entire nonforfeitable benefit that resulted from employer contributions?

[2033]

c. Are such distributions made because of the termination of the employee’s

participation in the plan? [2034]

5624

Form

(Rev. 12-98) (page 2)

Department of the Treasury - Internal Revenue Service

Form 5624 - Employee Benefit Plan Defined Benefit Plans Minimum Vesting Standards Page 2

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