How is this possible? Well, the firm’s 401k plan has a five year vesting schedule for company matches. While the match percentage is not very good, you are not vested in any of the match until 2 years of service (20%), which then graduates to 40% at 3 years, 60% at 4 years, and finally 100% at 5 years. Although many companies have graduated vesting to help encourage employees to stay, most have the decency to provide for an accelerated vesting in cases where the termination of employment is not the fault of the employee (i.e., a layoff).

Unfortunately the firm is not one of those firms that provides accelerated vesting for laid off employees. In my case, although I am less than 1 year from being fully vested, the firm refuses to credit the $3,500 in company matches that will not be vested. Sadly for employees the firm’s supposed mission to be an “Employer of Choice” is nothing more than lip service. “We respect the individual”, “We are open and honest in our communication”, and “we act with integrity” are apparently all BS!

It is amazing the lack of foresight the firm has, being in a business where growth is highly dependent on maintaining good relations with alumni. I certainly know at this point that I will never give any business to my old firm.

So I guess the lesson for everyone else in this rant is to not consider that company match in your 401k to be yours until you are fully vested. Although you may strive to be loyal to your employer, if and when your employer chooses to kick you to the curb it is very likely they will keep part of your retirement savings as well.