New plan after sponsor emerges from bankruptcy; does sponsor have to count years of service before plan establishment for purposes of vesting?

[Guest CJS]

My company will be emerging from bankruptcy soon and they are starting a profit sharing plan. The new plan will have each employee vested 20% each year for five years. This seems perfectly fine if you were a new employee but what if you have been with the company for 10 years? Should an old employee get vesting of 100% immediately if he has 5 or more years already?

This is a salary group and not covered by a collective bargaining agreement. Another thing to consider, there will be new owners.

Maybe I should just be thankful I'm still employed.

[david rigby]

Was there a previous plan?

[Guest CJS]

We had an ESOP which will be terminated when the company is taken over. The profit sharing plan will be new.