Controlled Group/Employee Status

[TPAVP]

Coal Company A is a wholly owned subsidiary of Big Electric Company B. For years, Big Electric company B has excluded A from it's retirement plan and company A maintains its own Plan. In 2013, B hired some of the A employees. 1) Do A employees have a distributable event? and 2) would former A employees share in PS which has a last day provision. I'm thinking no and no, but am not completely sure.

[ETA Consulting LLC]

Well, there is no distributable event with respect to termination of employment since they are employed with a member of the controlled group. As to whether they are entitled to a PS, you'd have to carefully read the plan's language to make the call; as the only thing the law states is that the plan must state how the contributions will be determined (so, it driven by the plan, not the law).

Good Luck!