Slem

Company A is acquiring Company B via stock acquisition. Both companies currently sponsor retirement plans. Company A has a stand alone plan and Company B is part of a PEO. Once the acquisition happens Company B will retain their own EIN and act as a subsidiary of Company A. The intent is for Company B to terminate participation in the PEO plan prior to acquisition. Post acquisition Company B will become a participating employer on the Company A plan. The question is does Company B employees have a distributable event or would participation in Company A plan be viewed as a successor plan?

A plan is amending vesting to a more liberal vesting schedule. They want this to apply to all balances active and terminated. We are getting push back from the administrator that the new vesting can only be applied to current employees and terminated employees are required to stay on the prior more restrictive schedule. I have never run into this below and does not seem correct. Anyone else run into this?