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Showing results for tags 'Can we refuse the DB plans?'.
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I'm used to the for-profit world where an acquiring corporation is usually not interested in taking on the selling corp's retirement plan. In the cases I've seen where assets are being purchased, the seller agrees to terminate the plan (typically a 401(k)) and distribute the assets. The buyer takes on the employees as new hires. The new hires evenutally meet the buyer's plan eligibility requirements and enter their new employer's plan. Sometimes prior service is counted, sometimes not, depending on if the new employer doesn't mind including these new people sooner rather than later in its retirement plan. But I'm feeling like a fish out of water with this not-for-profit situation. I'm hearing words like "obligations of the Successor Employer" and some people speculating that the acquiring employer cannot refuse the DB obligations of the County facility's severely underfunded pension obligations. They have yet to determine the funding status of the other not-for-profit facility's DB plan, but it's probably not good. Is the not-for-profit world different, meaning that the acquiring not-for-profit might be forced to take on both facilities' DB plan obligations? Or are there situations when it can be avoided, and if so what types of situations?