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Repymt of lump sum distribution and then rehired


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Guest Donald H. Miller
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Employer sponsors separate non-contributory DB plans for salaried and hourly participants. Both plans provide for deminimus lump sum distributions at termination but fail (silent) to address repayment of any previous lump sum distributions upon rehire. A former participant in the hourly plan, who received a lump sum distribution at termination, has now been rehired as a salaried employee and now participates in the salaried plan. How do we treat vesting service in both plans? (A related question, does it matter that more than two years have passed?) Both plans are silent on repayment. Also what if she transfers from salaried to hourly, do we allow her to repay then?

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