Board of Resolution Language for Asset Purchase

[Vlad401k]

Company B did an asset purchase for Company A and acquired Company A's employees under "same desk rule". What should the board of resolution language be for this amendment?

[david rigby]

Not enough information. Many issues to explore in a merger or an asset purchase. Should include who is affected, who isn't. Whether the "new" employees must meet any conditions. Vesting. Any unions involved? Coordinate with any other benefit programs (this one is often overlooked). The list goes on. An experienced retirement consultant might be important.

You might need an ERISA attorney.

[QDROphile]

One issue for consideration is granting of past service credit. That is typically a matter within the employer's authority. That point should have been negotiated as part of the terms of the purchase. Questions relating to rollover of plan loans are probably within the plan administrator's authority, not the employer's authority.

[austin3515]

What amendment? No amendment is required as Company B just hired some new employees. Now if you want to recognize service, that is a different story. The amendment would just say "Company B Plan recognizes service with Company A".