Service for Eligibility and Vesting on Foreign National

[DTH]

I have a U.S. plan that has a foreign company as part of their controlled group. The plan does not exclude foreign individuals as a class. If a foreign national from the foreign company transfers to the U.S. company, do you need to count the service with the foreign company for eligibility and vesting.

Example: Foreign individual worked for foreign company for 6 years and transfers to the U.S. company for 3 years. The plan has a 5-year vesting schedule. Do you count the 3 years service in the U.S. or 9 years combined U.S. and foreign service for vesting?

It appears you would count the foreign service according to Labor reg. 2530.210(d) & IRC 1563(a) [1563(b) carves out foreign nationals; 1563(a) does not].

Additionally, if a U.S. individual transfers to the foreign company, can you count the foreign service for benefit accruals under the U.S. plan?

I appreciate your thoughts. Thanks.