Reports have trickled in to Miss Fortune alleging that employee assumptions regarding Smart Schools Management, Inc.'s 401(K) plan vesting schedule have resulted in forfeitures of the employer contribution share of the account.
The plan's Form 5500 filings indicate that an average of 6-7 people leave employment each year before becoming fully vested.
Although each individual's contribution is immediately 100 percent vested, Smart Schools Management, Inc.'s fund's graded vesting schedule grants employees full ownership after six years—the maximum allowed under Federal law.
On August 31, 2011 (effective September 1, 2011) the Plan adopted an amendment to accept Roth deferrals. On June 11, 2012 (effective August 13, 2012), the Plan resolved to adopt employees of Smart Schools North, LLC and Smart Schools Management of Bay City, LLC into the Plan. It was further resolved that the employees of Smart Schools Management of Bay City, LLC that had former services with Smart Schools North, LLC, have services credited under this plan and counted for eligibility purposes only. For vesting and contribution allocations, only service with Smart Schools Management of Bay City, LLC is considered eligible.
Effective April 1, 2014, the Plan was split into two plans. Employees of the Grand Traverse Academy, LLC entered a new plan under the name of Full Spectrum Management, LLC 401(K) Plan. The employees of Smart Schools Management of Bay City, LLC and Smart Schools North, LLC continued under the Smart Schools Management, Inc. 401 (K) Plan.
And what about any further changes spurred by the takeover of the Bay City Academy by Mitten Educational Management?
Due to the schedule established for reporting to the Department of Labor, the fortunate son-in-law's company has not been required to file a report. That task may fall to Mitten's new Business Manager, rumored to be the son of a Grand Traverse Academy Board member.