Please help me understand bridging of service given all these mergers and acquistions...
Here's my case.
I worked for Company A, division A1 aerospace for 5 years, then left to work for Company B, division B2 telecom.
2 years after I left, Company A sold division A1 to Company C, transfering all pension requirements.
9 years after I left, Company A bought division B2 from Company B, transfering all pension requirements. So now I work for Company A again, now in division A3.
Company A informs me that they will not discuss bridging service until I have worked for them for 1 year. Company A, division A3 has a policy for bridging service, but it only addresses divisions A3, A4, and A5. Note: divisions A3, A4, and A5 did not exist 10 years ago. And division A5 is in the same industry (aerospace) as division 1, where I worked.
Question
Next year will it be my 10th or 15th anversary? If it is my 15th, I get another week of vacation...

Any thoughts????? TIA


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Paul Conway,
paul.conway@acm.org

Paul

Service bridging in its broadest sense is a company culture issue, not governed by any body of law or even any well-documented industry standards. So, for example, how a firm defines 'prior service' and/or counts all or part of that service toward current entitlements to vacation, etc, is basically a matter of company policy/culture.

Re-establishment of vesting status in qualified retirement plans is another matter. Federal law (complex federal law, to be sure) covers the requirements plans must comply with here. Based on your summary alone, it's hard for me to say whether you're entitled to any re-establishment of your vesting status in any retirement plans of your current employer. My initial take is the Company A plan in which you originally participated now 'lives' at Company C, so you wouldn't have standing with any current Company A plans.

Here's hoping better informed BenefitsLink correspondents chime in with their thoughts.

As a former Ben Mgr at a telecom, I sympathize with your confusion. Bridging decisions should have been communicated along with your new ben package at the time of the acquisition, or shortly thereafter. It's common to have a one-year wait before bridging vacation svc.

Bridging of service can vary by benefit within a company. Don't assume that if your full years of svc. for vacation, svc. awards, etc. are granted after one year of "re-hire" service with A, that the same will apply to the qualfied pension plan.

If "old A" qualified plan assets went to C, and you left A with a vested pension benefit, then C owes you the pension for your 5 years, and A owes you nothing but any B plan assets.

One other way to look at it, though it's probably a long shot, depending on the terms of the merger/acquisition agreements. What about bridging service under the plans' re-employment provisions? You may be able to find something there . . .