Plan covers entities with varying benefit formulas

[Guest cosmo01]

Our plan covers many entities which have various benefit formulas. The plan provides that the benefit formula at the entity where the employee is last employed is the formula used to determine the employee's benefit under the plan. This to me, creates a windfall for an employee who has worked at a lower formula entity for the majority of his career, then transfers to an entity with a much more generous formula. Is there any reason why we would do this? It seems to me that an employee earns a benefit in accordance with the formula at the entity he is employed with and if he works at 2 or 10 different entities, his benefit is determined based on the aggregated benefit from the 2 or 10 different entities. Is there something that I am missing? Any guidance is greatly appreciated!

[Blinky the 3-eyed Fish]

The formula is specific to your document. Your questions are specific to your situation. I agree it seems odd, but I am not sure how anyone here can help. I know I can't.

[david rigby]

Sounds like difficulty in determining proper funding, also. Might be a classic example of why you should not design a plan this way.

[AndyH]

Is this a government plan that is hoodwinking the taxpayers, for example a plan that uses final 6 months comp including overtime, and surprise, surprise, everybody works mucho OT in their last 6 months?

I wouldn't think that a private business would do as described.

[Guest cosmo01]

It is actually a church plan. The organization includes numerous entities that have varying benefit formulas.