Which awards fully vest, which pro-rate, which forfeit.

Eligible: age 58 + service 18 = 76 ≥ 65, min age 55 met.

# Retirement vesting impact — the employee

Educational diagnostic prepared from typed inputs. Not legal, tax, or financial advice. The company's plan document, the award agreements, and legal counsel control. Bring this memo to equity, legal, and payroll for review before relying on it.

## Inputs
- Birth date: 1968-04-15
- Hire date: 2008-09-01
- Proposed retirement date: 2026-12-31
- Eligibility rule: age + service ≥ 65 (min age 55) (checked at retirement date)
- Pro-rata method: months served / total vest months

## Eligibility
- Evaluated at: 2026-12-31
- Age at evaluation: 58 yrs
- Service at evaluation: 18 yrs
- Outcome: Eligible: age 58 + service 18 = 76 ≥ 65, min age 55 met.

## Per-award outcomes
- **RSU-2023-001** (RSU) — Full vesting
  - Already vested: 2,000
  - Additional vesting at retirement: 2,000
  - Estimated value at retirement: $200,000
  - Reason: Eligible: age 58 + service 18 = 76 ≥ 65, min age 55 met. Policy treats RSU as full vesting at retirement; 2,000 unvested shares vest on 2026-12-31.
- **RSU-2024-014** (RSU) — Full vesting
  - Already vested: 800
  - Additional vesting at retirement: 2,400
  - Estimated value at retirement: $160,000
  - Reason: Eligible: age 58 + service 18 = 76 ≥ 65, min age 55 met. Policy treats RSU as full vesting at retirement; 2,400 unvested shares vest on 2026-12-31.
- **NSO-2022-007** (NSO) — Pro-rata vesting
  - Already vested: 3,750
  - Additional vesting at retirement: 1,250
  - Estimated value at retirement: $140,000
  - Reason: Eligible: age 58 + service 18 = 76 ≥ 65, min age 55 met. Pro-rata vesting (100.0% by months served / total vest months): 1,250 additional shares vest, 0 forfeit. Method honors at-least-already-vested, so a higher already-vested figure is preserved.
- **PSU-2025-003** (PSU) — Pro-rata vesting
  - Already vested: 0
  - Additional vesting at retirement: 1,100
  - Forfeited: 700
  - Estimated value at retirement: $55,000
  - Reason: Eligible: age 58 + service 18 = 76 ≥ 65, min age 55 met. Pro-rata vesting (61.1% by months served / total vest months): 1,100 additional shares vest, 700 forfeit. Method honors at-least-already-vested, so a higher already-vested figure is preserved.
- **RSU-2019-099** (RSU) — Already fully vested
  - Already vested: 2,400
  - Estimated value at retirement: $120,000
  - Reason: Award is fully vested as of the data snapshot (2,400 shares). Retirement does not change its status.
- **ISO-2024-022** (ISO) — Forfeiture
  - Already vested: 375
  - Forfeited: 1,125
  - Estimated value at retirement: $5,625
  - Reason: Eligible: age 58 + service 18 = 76 ≥ 65, min age 55 met. Policy forfeits unvested ISO at retirement; 1,125 shares forfeited.
- **PSU-2025-014** (PSU) — Needs manual review
  - Already vested: 0
  - Estimated value at retirement: $0
  - Reason: Eligible: age 58 + service 18 = 76 ≥ 65, min age 55 met. Pro-rata calculation could not be completed: Pro-rata by months requires a vest end date. The data does not include one for this award.
  - **Exceptions**: Pro-rata by months requires a vest end date. The data does not include one for this award.

## Totals
- Shares already vested: 9,325
- Additional vesting due to retirement: 6,750
- Forfeited: 1,825
- Continuing to vest after retirement: 0
- Estimated total value (vested at retirement): $680,625
- **Awards needing manual review**: 1 (1 total exception flags)

## Cross-functional handoff
1. **Equity admin / TR.** Confirm the award status table against the source-of-truth grants outstanding report from the stock administration platform (Fidelity / Shareworks / Computershare / E*TRADE / Carta). Reconcile any NEEDS_REVIEW row before sharing.
2. **Legal.** Confirm the eligibility rule and treatment table against the plan document and any individual-grant agreement nuances (qualifying termination definitions, change-in-control overlays, exception clauses).
3. **Payroll.** Confirm the income-recognition and tax-withholding implications for the shares vesting at retirement; coordinate the timing against the company's normal vest-cycle payroll calendar.
4. **Finance.** Reconcile any accelerated vesting against the in-flight ASC 718 expense forecast and the FY budget.

## Recommended next steps
1. Walk the per-award outcomes with the employee and document the rationale for any exception.
2. Resolve every NEEDS_REVIEW row before the retirement date; if data cannot be reconciled, escalate to legal.
3. If the retirement date moves, re-run the model with the new date so the eligibility check uses the correct age and service.
4. Save the assumption sheet alongside the memo so the legal / payroll review thread has the same inputs the model used.

## Disclaimer
Outputs reflect the policy and inputs typed above. Real-world award treatment is governed by the company's plan document and individual award agreements. Plans frequently include nuances not modeled here (qualifying termination definitions, change-in-control overlays, exception clauses, holding-period requirements). Bring this memo and your award agreements to legal and payroll before any action.