break in service and merger

[Guest re4701]

If employee participates in 401k with company A for 5 years from 1989 to 1994 and is fully vested in the plan. Then works for company B (which resulted from a merger of company A and 2 other companies) for a period of 3 1/2 years from 2010-2013. company B's plan had 5 year vesting @ 20% / year. Company B claims employee is only 60% vested.

Question: would employee be fully vested due to service with predecessor (company A), or does the 16 year break somehow disqualify the prior service?

[ESOP Guy]

I don't think the 16 years does it. He had a vested balance when he left company A. So IF he worked for company A again he would be vested when he is rehired. The better question i-- iss company B and company A the same company for purposes of this question. That I can't help you with-- sorry.

[Guest re4701]

In this case company B was the result of 3 companies merging including Company A,making company A a predecessor to Company B.