FAQ 216: Allocations--Status code to use to forfeit those not yet paid in full


Status F forfeits the full account balance, even though the participant is still vested in part of it. I want only the nonvested portion to forfeit, as the participant has incurred a 5 year break in service, but has not yet been paid.


Code them a unique status code, e.g. V. Then enter V beside status F in the GROUPDEF screen in the General Plan Specs. The system will then foreit the nonvested portion only, Status F has special programming that forfeits the full balance. Any other code would forfeit only the nonvested portion.
If the code is changed to V, but the full balance is still being forfeited, check the following:
1) Make sure their Current Vesting (primary, top heavy, secondary if used) are all reset to their proper Vesting %. When coded as an F, the system reduces their Vesting % to zero, and it is not reset only by changing their status code to V. Also - remember to click OK on the screen after you make data field changes.
2) Make sure the "Paid Out" indicators say "N" for all sources.