Leaderboard

Go to the J&S rules in Title I of ERISA and look for the provision describing plans not subject to those rules. After that you'll be on the same page as the rest of us because neither the Government nor any court, to my knowledge, has every opined on how a 403(b) may fit within that provision.

I don't work on defined contribution plans, and "old money" vs "new money" sounds like a dc plan. My opinion is that it is irrational to try to apply different vesting percentages to different portions of the account balances. In my opinion, it is stingy and mean to try to avoid using the more generous Plan A vesting to all plan benefits. If it is that important to the sponsor, let Plan A merge into Plan B, keep the higher current vested percentage for all people who were in Plan A and allow any Plan A people with 3+ years of service elect to stay on the old schedule (that rule applies to all ERISA plans, right?). If it must be Plan B into Plan A, bite the bullet and let everyone be vested under the Plan A schedule. It couldn't possibly add much of anything to the sponsor's costs.