Rehired by a new employer

[Guest JPIngold]

Looking for confirmation ---

I have a 401(k) plan sponsored by Company B which was established in 2003 by 3 individuals who left Company A. The plan recognizes service with Company A for eligibility and vesting. The Companies were never in a controlled group together.

John Doe worked for Company A and had a nonforfeitable interest in their 401(k) plan. When Company A dissolved in 2003, he went and worked for a Company C.

Life goes on and on and John left Company C in 2003 and went who knows where.

On 8/3/2009, Mr. Doe shows up at Company B, where he has never worked a day. But, Company B recognizes service with Company A and in 2003, Mr. Doe had a nonforefeitable interest in their plan. The document has the rule of parity (Corbel volume submitter), but I am concerned about the nonforfeitable interest issue. The language says "In the case of a Participant who under the Plan does not have a nonforfeitable right ...."

Well, he never had a nonforfeitable right in Company B's plan, although he would have had he started with them within 5 years of leaving Company A.

Do you think I need to bring him in on 8/3/2009???

Thanks.

James

[Guest bobolink]

Something is missing here. Did B hire Doe? Typically, one has to be employed by the plan sponsor to begin to be considered a participant.

[Guest JPIngold]

Sorry about that ... I said shows up and should have said hired on 8/3/09. So, yes, he is now an employee of B and I am trying to determine if his entry date is 8/3/09 or if he starts his eligibility determination period on 8/3/09.

[Guest JPIngold]

Since I had some confusing facts, let me try again ---

I have a 401(k) plan sponsored by Company B which was established in 2003 by 3 individuals who left Company A.

B's plan recognizes service with A for eligibility and vesting. The Companies were never in a controlled group together.

John Doe worked for Company A and had a nonforfeitable interest in A's 401(k) plan. When Company A dissolved in 2003, he went and worked for C which was not in a controlled group with A. Life goes on and on and Mr. Doe left Company C in 2003 and went who knows where.

On 8/3/2009, Mr. Doe is hired by Company B. Reminder --- he has NEVER worked a day for B.

But, Company B recognizes service with Company A and in 2003, Mr. Doe had a nonforefeitable interest in A's plan. B's current document includes the rule of parity (Corbel volume submitter), but I am concerned about the nonforfeitable interest issue. The language says "In the case of a Participant who under the Plan does not have a nonforfeitable right ...."

Well, he never had a nonforfeitable right in B's plan. He did in A's, but not B's.

Do you think I need to bring him in on 8/3/2009 when he was hired by B??? (In other words, was this a rehire because he had a nonforfeitable interest in A's plan?)

Thanks.

James

[Guest Sieve]

This is not a rehire--he's a new hire by Co. B who brings with him some y/s baggage as a result of his prior work at Co. And, Co. B is not maintaining the plan of Co. A. So, I say he immediately receives credit for his y/s with Co. A long ago, and therefore will enter the plan on the next entry date after his date of hire (because he's never passed an entry date as an employee of Co. B).

[david rigby]

Sieve could be correct. However, refer to the Plan B language where it references Company A. Does that language have any conditions on it? Such as, "service with A prior to xx/yy/zz will be recognized in B if ......"