Service for "Affiliated Employer" = Service for failed bank

[BonoConsilio]

Plan doc allows Service to count towards eligibility for "Affiliated Employers". For example, Bank A sponsors Plan 1; Bank A Holding Company acquires Bank B. Bank B adopts Plan 1 and Bank B employees' Service counts toward eligibility.

Question: Bank C fails. Bank A takes over Bank C from Regulator (i.e. not an acquisition like Bank B). Bank C employees are now Bank A employees. Employees' Service with Bank C count towards eligibility for Bank A's Plan?

I think not. Any other opinions or determinative guidance on this?

[Nate X]

I believe this would be handled just the same. That is, the language in the plan document will determine if prior service is given for eligibility and vesting.

[BonoConsilio]

I believe this would be handled just the same. That is, the language in the plan document will determine if prior service is given for eligibility and vesting.

The reason I do not think it would be handled the same is because Bank B is an "affiliated employer". Both Bank A and Bank B continue as separate, but now affiliated banks because they are owned by the same holding company.

In the other case, Bank C was never an "affiliated employer" before it ceased to exist, but Bank C employees are now Bank A employees.

[QDROphile]

I would require a more apt description of the imputed service for Bank C employees. The service credit can be given, but I don't think service for an affiliate describes the Bank C pre-aqusition service.