Leaderboard

Not 100% true. Eligibility is NOT a protected benefit. Now MOST of the time employees who enter under the old eligibility are grandfathered when eligibility if made more restrictive for PR purposes but it's not always the case. So in the OP example IF the participant's eligibility was grandfathered then she would be eligible for PS contribution. On the other hand if she was excluded when the eligibility changed she would have to satisfy the new eligibility to once again become a participant and would not be eligible for a PS contribution.

This thread illustrates why it is not a good idea to have the corporate plan sponsor be the plan administrator. The Department of Labor can assert that every individual director and executive officer is a fiduciary personally based on the formal identification of the plan sponsor plan administrator, and it has done so. In the end, the argument that there is a very clear and well defined (by practice) limited number of persons who are the functional fiduciaries will probably control the personal liability questions, but it will be rather uncomfortable for those poor formal fiduciaries to suffer through the process with the liability cloud over their heads and the outcome is uncertain.

unless parent and child are partners.