foreign national foreign subsidiary

[k man]

a employee worked for a foreign subsidiary of the plan sponsor is now being transferred to the states. does his prior service count with the foreign subsidiary? my inclination is that it does not unless the plan sponsor wanted to credit this service.

[masteff]

Have to look at whether the subsidiary is in the control group. Is it wholly owned or partially owned?

P.S. - you'll also have to consider what will happen if he returns to the subsidiary in future years. If it's control group, then he won't have a separation from service to allow distribution, so would have to coordinate w/ the sub to keep track of employment status.

[k man]

Have to look at whether the subsidiary is in the control group. Is it wholly owned or partially owned?

P.S. - you'll also have to consider what will happen if he returns to the subsidiary in future years. If it's control group, then he won't have a separation from service to allow distribution, so would have to coordinate w/ the sub to keep track of employment status.

not sure but lets say it is wholly owned. however, since they are UK based and pay employees in UK pounds i still think the service wouldn't count.

[QDROphile]

I think you need to look at the service and controlled group rules. I did not review, but generally any service with in a group counts and controlled groups are not limited to domestic entities. It is possible to design the plan to have special exclusions, subject to discrimination limitations, that treat the person in an unusual way with respect to eligibility, but probably not for vesting.

[k man]

after further review your opinion seems to make the most sense. basically the people that switch over would be eligible immediately as long as they satisfied the plans eligibility.