two plan top heavy question

[himt4]

A client has a PS plan. The Plan is top heavy. Jane's been in the PS plan the last several years and has gotten at least the top heavy minumum contribution all those years. Effective 1/1/05, the client starts a DB plan. For 2005, Jane was given a 0% PS contribution in the PS plan, and got the top heavy minimum accrual in the DB Plan. Jane terminated in early 2006 with under 1000 hours. Since the DB plan excludes vesting service prior to the 1/1/05 effective date, Jane is 0% vested in the DB plan. Jnae will get no payout from the DB plan.

Jane is 100% vested in the PS plan. If she had gotten a top heavy minimum in the PS plan in 2005 she would have ended up with it, but she ends up with nothing for 2005 because she got it in a plan where she was 0% vested.

Unless, there's a rule I'm forgetting....

Is there any rule that says something like if you have two plans, you must apply the better of the two vesting schedules to top heavy contributions???

[Guest Carol the Writer]

Maybe I'm ultra-conservative, but why wouldn't the p/s/p be considered a predecessor plan to the DB plan? Then years of service under the p/s/p would need to be counted for vesting under the DB Plan, as well.

[Effen]

Carol, strange as it may sound, I believe the predecessor plan rules only apply if the plan terminated. Since the PS is still ongoing, I don't believe they apply, unless it terminates in the near future (5 years, I think).

[Guest Carol the Writer]

Effen, you are correct. My memory is failing. We generally grant service as though it were a predecessor plan, anyway. Thanks!