Merger Vesting Calculations

[Guest lawfive]

I need help with a vesting determination.

We have been asked to help determine vesting for an employee who worked for Company A for 4 years and 3 months and quit. At the time, he was not vested. 3 years and 9 months later, this employee joined firm B.

1 year and 8 months after this, firm A and firm B merged.

The employee is claiming that both the vesting service and benefit from the original company time with Company A must be restored.

Does anyone have any experience with this or know where I can find information relating to guidance?

Thank you.

[Andy the Actuary]

More facts are needed and your question requires legal counsel that's been through this kind of situation.

How was the merger of A and B affected? Did B buy the stock of A or only the assets of A. Were A and B related prior to the merger? Was A's plan merged into B's plan and that is the plan to which the employee is referring? If not was A's plan terminated or is it still alive (perhaps frozen) and being maintained by B? How does the plan language define employee and years of service for vesting? What, if anything, was provided in sales agreement between A and B. Are these single employer plans? Are they negotiated, and if so what does the bargaining agreement(s) provide?