Vesting issues when company B buys part of company A.

[Guest michaelv]

Company A sells investments for retirement plans, and performs the administration as well. That is, until company A decided to sell all of the admin. portion of their business to Company B, who is unrelated to company A.

The small group of employees of Company A, who did the admininstration were offered jobs with company B, to do the same thing they were doing at company A (but at a different location), working on the same clients, preparing the same type of work, etc. Otherwise, they would be out of a job, since Company A had no work for them.

Assume all of these affected employees were less than 100% vested in Company A's 401(k) Plan. Company B will not recognize service with Company A for any retirement plan purposes for Company B.

Other than for reasons of a possible partial plan termination of Company A's plan, would there be any reason why these employees should be fully vested in company A's plans? Any out-of-the-ordinary rules concerning their distributions from Company A's plan?

Thanks