Predessor service and entry date

[30Rock]

We have 2 companies A and B, in similar line of business where A owns part of B, but they are not a controlled group. Employees often transfer between companies. Situation we have is employee terminates with A and transfers/is hired by B. Lets assume employee met eligibility in plan A and had been particiipating for years. Plan B credits service with Employer A under the predecessor service provisions. Plan B has one year of service with semi-annual entry dates. Employee is hired on August 5th and has his service credited by Plan B. So when does emplloyee enter plan B? On August 5 or next January 1?

Thanks

[Mike Preston]

The doc should say (mine certainly does). If it doesn't, it has an ambiguity, which the Plan Administrator should resolve.

[30Rock]

I guess that is part of my question. If you interpret "crediting prior service for eligibility" to include the entry date since entry date is part of eligibility, then they would come in immediately under the normal plan rules. Similar to a rehire. So I do not see why the document would need to state anything specific. If you view entry date as separate from eligibility, then you would look to the plan to see when they should come in, but there will be no specific language. And if you are under this view and you want to make them enter the plan immediately upon transfer, then you will need language because you are not looking at entry date as being part of the predecessor service that you are crediting.

It seems to me that once you reach an entry date in Plan A, and switch to Plan B, you do not need to meet the entry date again.

[PensionPro]

Also see prior discussions here:

http://benefitslink.com/boards/index.php?showtopic=46501

http://benefitslink.com/boards/index.php?showtopic=11640

[12AX7]

If in doubt, make an amendment to the plan that specifically addresses this situation.