Partial Plan Termination - Rehired Employees

[blue]

Just checking to make sure I am thinking correctly.

Partial plan termination occurred and employees laid off because of employer initiated action were 100% vested. If some of the employee who were previously laid off are later rehired, new employer contributions would be subject to the vesting schedule counting past service correct?

[david rigby]

Notwithstanding your punctuation, or lack thereof:

If the EE is vested 100% at termination, then vested 100% at rehire.

[Guest Sieve]

David --

Are you sure? When rehired, a former employee's past service is credited for both vesting and eligibility pursuant to the Plan's provisions. Just because a partially-vested employee became 100% vested as a result of a partial termination should not cause that individual to be 100% vested when re-hired if the individual does not otherwise have sufficient y/s for full vesting. (Note that the Code fully vests "the rights . . . to benefits accrued to the date of such . . . partial termination . . ." (IRC Section 411(d)(3), flush language.))

[david rigby]

Made me look. It seems my answer was hasty. I think Sieve is correct.

(I saw nothing on point in the regs, or in the Gray Book.)

Some earlier discussions:

http://benefitslink.com/boards/index.php?showtopic=43303

http://benefitslink.com/boards/index.php?showtopic=14055