In CPAS Version 5, vesting and locking rules are associated with the contribution sources defined for each client plan.
The system supports the following types of vesting A participant's interest in his/her account balance or his/her accumulated benefit. In pension terms, the right of an employee to all or part of the employer's contributions, whether in the form of cash or as a deferred pension.:
Immediate: An employee has the right to receive a present or future benefit, immediately upon joining the plan.
Age/Service: Vesting is based on the member's age, service, or a combination of both to determine the vesting of any benefit from the employer source(s). The plan Vesting rule allows the user to specify the age and/or service required for the employer benefit(s) to be fully vested. When setting up vesting rules at the Plan level, if you set the Minimum Service required to zero, the vesting rule is then based on the member's age only. If you set the Minimum Age to zero, the vesting rule is based on the member's service only.
Age/Service/Source: The Age/Service/Source vesting rule returns a vesting percentage based on source and other conditions. If a plan’s vesting type is Age/Service/Source, the system will first apply the Age/Service rule. If the employer benefits are not fully vested based on the rule, then the system applies the Age/Service/Source vesting rules.
Vesting types, defined at the Global level can then be selected for use at the Product level.
For single-employer clients, the Forfeiture Account is always at the plan level
For multi-employer clients the Forfeiture Account may be set up at the plan level or at the employer plan level. For DC plans, the Forfeiture Account Setup indicator, which designates the level at which the forfeiture account is set up, is shown in the Vesting folder for multi-employer clients.
The system supports three types of locking-in:
Age/Service: Locking-in is based on the member's age, service, or a combination of both.
Age/Service/Source: Locking-in rules for each source is based on the member's age, service, or a combination of both.
Locked-in when Vested: If the money is vested, then it's locked.
None: Contributions are not locked in.
Locking-in types, defined at the Global level can then be selected for use at the Product level.
For more information, see (DB Plan) Vesting and (DC Plan) Vesting.
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