PS plan merged into MPP plan

[Guest mrobinson]

I have a plan that we took over from another TPA. It looks like the PS plan was merged into the MP plan, although I see no documentation to support this (and there should be, right?). However, there is a "profit sharing rollover" source with a vesting schedule attached to it (not 100% vested). Participant with 20% vested PS rollover $ has 5 yr BIS and so the non-vested $ is forfeited. The document states that forfeitures are used to reduce ER contribution, but there are no PS contributions to reduce. The ER is only making MP contributions. Can the PS forfeiture be used to reduce the MP contribution?

[Jim Chad]

No one else has answered so I will take a swing at this. I can't think of annywhere to look for an answer. But my gut feeling is that you have one Plan here and if the document says you are supposed to use forfeitures to reduce Employer Contributions, in an MPP, I would use any forfeitures ot reduce any Employer Contribution.

One caveat is that the document doesn't specify what kind of Contribution. I have seen some Profit Sharing documents seperate match Forfs form nonelective Forfs and have dirrent provisions for each.