Given these plan rules for calculating Vesting Service (VS) using Elasped time m
ID: 2645500 • Letter: G
Question
Given these plan rules for calculating Vesting Service (VS) using Elasped time method where a month of service equals a service quantity of 1/12. A day worked in a month is equaivalent to one whole month of service. During paid leave of absence (LOA PD), the vesting service is restricted to a maximum of 12 months from the leave begin date.
Use this information to calculate the participant's vesting service, rounding the total vesting service to four decimals.
Information
Date of hire (DOH) 8/10/1998
Paid LOA 02/25/2005
Return from leave (RFL) 10/18/2008
Date of termination (DOT) 5/6/2013
Solve for the vesting service as of the final determination date.
Explanation / Answer
Year Vesting service Explanation 1998 0.416666667 This is arrived by dividing 5 with 12. Even a single day worked in a month is considered as whole month. Hence, though the employee joined in October, the whole month is considered as served and hence total period of service in the year is 5 months 1999 1 Total year served 2000 1 Total year served 2001 1 Total year served 2002 1 Total year served 2003 1 Total year served 2004 1 Total year served 2005 1 Total year is considered as served. As, it is mentioned that from the date of commencement of paid leave, 12 months is considered for calculation of vesting service. 2006 0.083333333 Paid leave commenced in the month of February of 2005, 12 months starting from february ends in January 2006. Hence, only one month is considered for calculation of vesting service. 2007 0 2008 0.25 The employee rejoined the sevice in the month of October,Hence 5 months are considered for calculation of vesting service. Hence, the fraction is arrived by dividing 3 with 12 2009 1 Total year served 2010 1 Total year served 2011 1 Total year served 2012 1 Total year served 2013 0.416666667 As the employee services are terminated in the month of may, and even a day served in a month are considered as whole month. Hence the fraction is arrived by dividing 5 with 12 Total 12.1667
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