Revisit the vesting on plan merger question

[jkharvey]

I have searched this board and found some discussion but no definitive answer. When MPPP is merged into 401k PSP are the MPPP amounts 100% vested?

[stephen]

no

[jkharvey]

I was afraid of that...lol. What do we tell client?

[david rigby]

Why? Did you tell sponsor the opposite?

Before hand-wringing, don't forget to look at the dollar impact. If the unvested amounts are not much, then don't consider it the end of the world. Perhaps a viable perspecitve is to communicate to the EEs: "although we were not required to vest these amounts, we did so anyway...."

[Ron Snyder]

Stephen's answer should have been "not necessarily". It depends on (1) the documentation of the merger, and (2) the facts and circumstances (partial termination, curtailment) surrounding the plan merger.

As to what to tell the client, I would look him right in the eye and assure him that your E&O is up to date.