FAQ 687: Vesting--3000 hours crediting two years of vesting service


I have a plan that the employer had 3,000 hours on several employees. When vesting is calculated those employees vesting increased by 2 years. For example, instead of going from 50% to 75%, they went to 100%. I changed their hours to 2,000 and vesting worked fine.


The 3000 hours entry is hard-coded into the vesting calculations to help users fix vesting, and also to credit 2 years of vesting for short plan years where employees needed to get 2 years of credit in one year. If you use 2999 hours or less, the employees will only receive one year of vesting service. Only coding 3000 hours will produce the result that you are seeing.