Mass Mutual

FAQs

Q. What is a 3-year cliff vesting schedule?
A. After satisfying the vesting requirements with Legacy Traditional Schools you are 100% vested in the employer match. Prior to the third year you are zero percent vested.
Year 1 = 0% Vested
Year 2 = 0% Vested
Year 3 = 100% Vested

Q. How is vesting calculated?
A. Vesting in the employer match is based on your years of service with Legacy Traditional Schools and required hours completed within the plan year. Your first two years, you are not vested in the employer contributions. In your third year of employment with Legacy Traditional School, you become 100% vested in the employer match.

Q. How is vesting earned?
A. To receive vesting credits as it relates to years of service, you must work 1,000 hours to receive 1 year of service. For example, if you are hired in October and work 1,000 hours by June 30, you will earn 1 year of service towards vesting. If you are hired in April, it is unlikely that you will work 1,000 before June 30, therefore you will not receive vesting credit for that plan year.

Q. What happens to the employer contributions prior to July 1, 2020?
A. The safe harbor employer match prior to July 1, 2020 are and will remain 100% vested.

Q. What happens to the employer match if I leave Legacy prior to three years?
A. Any money deposited into your 401(k) account that is not vested will be forfeited upon termination. This means unvested money returns to Legacy Traditional Schools.

Q. What if I terminate and later are rehired?
A. If you terminate Legacy Traditional Schools and are rehired within 5 years, and you have an account balance, the unvested contributions and lost earnings prior to your termination will be reinstated and deposited into your 401(k) account.
Attached is a copy of the required notice of summary of material modifications If you have any questions, please reach out to a member of the Benefits Team by email at benefits@vertexeducation.com or by phone at (480) 270-5438, Option 4, then Option 2.