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Single-Employer Profit Sharing Plans: Should A Break In Service That Occurs Because Of A Natural Disaster Result In The Forfeiture Of A Plan Participant's Nonvested Profit Sharing Benefit, Marie Ellen Haynes

Cleveland State Law Review

Most profit sharing plans provide that the nonvested portion of an employee's profit sharing benefit can be forfeited when the employee incurs a break in service. A break in service often results in termination. Employees can also break their service with an employer by quitting, retiring, dying, becoming disabled, getting laid-off, or being discharged for cause. Some of these methods of incurring a break from service are voluntary while others are involuntary. Whether an employee's profit sharing benefit can be forfeited may depend on whether his break in service was voluntary or involuntary. The issue that will be addressed here …