Plan effective date: 1/1/2001 The plan uses the most restrictive vesting requirements and the 7-year graded vesting schedule. An employee works over 1,000 hours in each year of employment.Employee data:Date of birth 1/1/1985 Date of hire 1/1/2002 Date of termination 12/31/2005 Date of rehire 1/1/2009 Consider the following statement: The employee is 100% vested as of 1/1/2012.Is the above statement true or false?

Question

Quizplus · Accepted Answer

Under a 7-year graded vesting schedule, an employee must work for 7 years to become 100% vested. The employee worked from 2002 to 2005 and then from 2009 to 2012, totaling 8 years, but with a break in service that might affect the vesting calculation depending on plan specifics not provided.

Plan Effective Date: 1/1/2001 the Plan Uses the Most Restrictive