Guest ANNEBV Posted July 2, 2001 Posted July 2, 2001 Company A has a PS Plan. Company B has a PS Plan. Company A is owned 100% by Company B. Eligibility provisions to enter both PS Plans are the same (age 20.5 & 1 YOS). Provisions for PS (allocation) eligibility are the same (employ on last day of plan year and 1000 hours of service.) Participant X transfers from Company A to Company B during 2000. Does he share in the 2000 PS allocation in both plans, based on his compensation for each respective company? Is it correct to assume that he did not, technically, terminate employment in Company A since he went to work for Company B and they are part of the same controlled group? Looking for some confirmation that I'm not overlooking any important details. Any immediate help will be greatly appreciated!
Guest MTransue Posted July 2, 2001 Posted July 2, 2001 We have a plan similar to this, however, we addressed this issue in the plan document, specifically. You wouldn't be so fortunate to have such language tucked in a tiny crevice of the document? Our provision is all of 2 sentences in an individually designed (wordy) plan document. The key phrase is transferred within the employer, not necessarily terminating from either A or B...
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