Fisher Posted December 3, 2012 Share Posted December 3, 2012 Can 2 unrelated employers recognize both past and future service with each other for vesting purposes? I know service is recognized within a Controlled Group and/or Affiliated Service Group. However, if there is a relationship or similar business interest between 2 separate unrelated tax-exempt organizations, could service after separating from one be recognized for vesting purposes if immediately go to work for the other? Both Company A and B will be recognizing service for eligibility, contributions and vesting with each other, but what if an employee terminates company B and goes to work immediately for company A, if the employee is not fully vested in B, can they recognize service with A for vesting service credit and not create a forfeiture until such time as they may terminate from A or vice versa? Link to comment Share on other sites More sharing options...
MoJo Posted December 21, 2012 Share Posted December 21, 2012 Can 2 unrelated employers recognize both past and future service with each other for vesting purposes?I know service is recognized within a Controlled Group and/or Affiliated Service Group. However, if there is a relationship or similar business interest between 2 separate unrelated tax-exempt organizations, could service after separating from one be recognized for vesting purposes if immediately go to work for the other? Both Company A and B will be recognizing service for eligibility, contributions and vesting with each other, but what if an employee terminates company B and goes to work immediately for company A, if the employee is not fully vested in B, can they recognize service with A for vesting service credit and not create a forfeiture until such time as they may terminate from A or vice versa? I have the same question. In my case, however, an employer/plan sponsor wants to give vesting service credit to individuals who jump from a competitor to them. Interesting recruiting tool..... Link to comment Share on other sites More sharing options...
BG5150 Posted December 21, 2012 Share Posted December 21, 2012 I have the same question. In my case, however, an employer/plan sponsor wants to give vesting service credit to individuals who jump from a competitor to them. Interesting recruiting tool..... The EOB seems to think it's okay to do that. But be careful of stuff like that happening only to HCEs. (Chapter 4, section IV, Part F2, 2(f)) QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left. Link to comment Share on other sites More sharing options...
MoJo Posted December 21, 2012 Share Posted December 21, 2012 I have the same question. In my case, however, an employer/plan sponsor wants to give vesting service credit to individuals who jump from a competitor to them. Interesting recruiting tool..... The EOB seems to think it's okay to do that. But be careful of stuff like that happening only to HCEs. (Chapter 4, section IV, Part F2, 2(f)) Thanks BG, I appreciate it! Link to comment Share on other sites More sharing options...
Guest GeerTom Posted December 23, 2012 Share Posted December 23, 2012 This is not "ordinary" so you'll have to look out for discrimination, if HCEs move back and/or forth too much. Otherwise, it is permitted because it's not forbidden. Link to comment Share on other sites More sharing options...
dal1204 Posted April 22, 2015 Share Posted April 22, 2015 Could someone tell me where I find EOB Chapter 4, referred to in this thread? Link to comment Share on other sites More sharing options...
John Feldt ERPA CPC QPA Posted April 22, 2015 Share Posted April 22, 2015 http://www.asppa.org/Resources/Publications/The-ERISA-Outline-Book Link to comment Share on other sites More sharing options...
dal1204 Posted April 22, 2015 Share Posted April 22, 2015 Thanks so much! Any thoughts about where the resource may be available other than through purchase? Link to comment Share on other sites More sharing options...
John Feldt ERPA CPC QPA Posted April 22, 2015 Share Posted April 22, 2015 I think most firms that provide administrative services for qualified retirement plans would either have electronic access to the EOB or they have a paper copy of the eight-volume book on a shelf (or both). Link to comment Share on other sites More sharing options...
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