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Vesting Years in a Qualified Pension Plan

MMC maintains a qualified defined benefit plan for eligible employees, with an effective date of January 1, 1990. The plan year for vesting and participation purposes is the calendar year. Eligibility is age 21 + one year wait + salaried status, with monthly entry dates; Vesting is the 3-to-7 graded schedule, with 1,000 hours required in a plan year.

a. Harriet was born on November 18, 1957 and hired as a full-time employee hourly employee of MMC on December 1, 1988. She transferred to full-time salaried status on June 1, 1990.

What is her entry date into the plan? My guess is 06/01/1990, correct? I think this because she already waited the one year as she was hired in 1988.

b. What are Harriet's vesting years as of December 31, 2000?

My guess is 9 years as shown below. (Not sure if this is the proper way to answer this).
1990 0% (not a full year) 1991 0% 1992 0% 1993 20% 1994 40% 1995 60% 1996 80% 1997 100% (fully vested) 1998 100% (fully vested) 1999 100% (fully vested) 2000 100% (not a full year).

c. Henry was born on December 1, 1963 and hired as a full-time salaried employee of MMC on December 15, 1995.

What is his entry date in to the plan? My guess is 01/01/1997, correct?

d. As of December 31, 2000, how many vesting years does Henry have in the plan?

My guess is 4 years as follows: 1997 0% 1998 0% 1999 20% 2000 40%.

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Thank you for bringing this up. Actually this is very tricky. Harriet would have June 1 to December 31, 1993 as the amount of work she has 'earned' as regards the plan. In this case, let's go back to the 1,000 hours requirement in a plan year. 1000 hours is 125 days, 25 ...

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The solution discusses vesting years in a qualified pension plan.