Merge two companies into one

[Guest HD WILLIAMS]

Two companies have a 401(k) plan. They then merge into one company. Which plan does the new company adopt? Or, does the new company keep both plans? The plans have minor differences as far as matching, etc. is concerned. If both plans are kept, which plan do the new employees go into? Please advise as to advantages and disadvantages of each.

[Ervin Barham]

Why not merge the plans as well? Then you only have to deal with one plan. I would think the decision as to which plan would "prevail" would be based on the features (investments, recordkeeping, etc.) that the sponsor thinks is appropriate.