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#1930754 - 06/09/14 06:31 PM Vesting for ESOP Plan
TMatt87 Offline
Diamond Poster
TMatt87
Joined: May 2011
Posts: 1,984
Idaho
Our bank has an ESOP plan that it contributes to on behalf of the employees. In the plan outline, it states that an employee must work 1000 hour in the calendar year to receive a year of vesting.

I was hired in the middle of the year and worked just over 1000 hours for the year, but did not receive a year of vesting because I was only paid for 980 for the year (the rest of the hours were on the first paycheck of the next year).

I don't want to make a big deal about this as I plan to stay with my employer long enough to receive full vesting, but should I persue this? The difference between hours worked vs. hours paid means a year of vesting for me.
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Human Resources
#1930766 - 06/09/14 06:46 PM Re: Vesting for ESOP Plan TMatt87
RBanker Offline
Power Poster
RBanker
Joined: Jul 2003
Posts: 2,675
Austin Texas
Does the benefit rules say hours worked, or hours paid? Would seem pretty cut and dried to me....
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My comments are absolutely no reflection of, nor influenced by, my employer - take them at your own risk.

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#1930783 - 06/09/14 07:07 PM Re: Vesting for ESOP Plan TMatt87
osucpa Offline
Diamond Poster
Joined: May 2011
Posts: 1,406
I would say it is worth making a simple inquiry with HR or the plan administrator.

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#1930801 - 06/09/14 07:31 PM Re: Vesting for ESOP Plan TMatt87
TMatt87 Offline
Diamond Poster
TMatt87
Joined: May 2011
Posts: 1,984
Idaho
I did inquire with HR and they said the calculation was based on hours paid, but all the plan materials say hours worked.
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All opinions are my own, not my employer's

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#1930848 - 06/09/14 08:32 PM Re: Vesting for ESOP Plan TMatt87
Lestie G Offline

Power Poster
Joined: May 2002
Posts: 3,608
Near the Land of Enchantment
You should bring it up. That's a big risk area for your bank in a DOL exam. If the doc and materials say hours worked - it needs to be hours worked, not paid.
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#1931090 - 06/10/14 05:26 PM Re: Vesting for ESOP Plan TMatt87
MTW75 Offline
Member
Joined: Apr 2007
Posts: 64
Lexington, Kentucky
Practically every plan document I've ever seen (I used to audit employee benefit plans) uses hours "worked" in the vesting requirements. Hours "paid" could be too easily manipulated due to various payroll frequencies (weekly, bi-weekly, semi-monthly, monthly). Regardless what your HR manager SAYS...the PLAN DOCUMENT IS the governing instrument and the vesting schedule shouldn't be that hard to interpret. It sounds like you don't want to make a scene or damage any relationships, but if your HR department won't abide by the plan document I'd advise you to pursue other sources to support your eligibility.

Worst case scenario: You may plan to stay employed there long enough to become fully vested but A LOT can happen in five years (I'm assuming that's the required time). It is surely worth it to you and/or your beneficiaries to get this fixed NOW.
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"The words you say never seem to live up to the ones inside your head." Chris Cornell (Soundgarden)

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