Übernerd Posted July 20, 2004 Report Share Posted July 20, 2004 Governmental plans are exempt from various ERISA and IRC vesting and funding rules. But what if a plan starts out private, then becomes governmental--to what extent do the ERISA and IRC vesting and funding rules "carry over"? E.g., assume that a privately-sponsored qualified pension plan neither provided § 203(a)(3)(B) service notices nor the alternative actuarial increases when participants beyond normal retirement age continued working. Then a governmental entity obtains the private sponsor and restates the plan as a qualified governmental plan. If the plan had remained a private plan, retiring participants would be entitled to the actuarially-increased benefit (because of the failure to provide notices); but, per § 411(e), a governmental plan is exempt from the 411 rules. Does the fact that the participant accrued most of his benefit under a private plan impose any requirements on the governmental plan, or is the governmental plan relieved of such responsibility once the plan becomes governmental? Link to comment Share on other sites More sharing options...
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