A few "shared employees" issues

[EGB]

Assume Employer A and Employer B are sharing some employees.

Further, A and B are an affiliated service group.

Questions:

1. Compensation. It appears that, for purposes of determining contributions under any retirement plan maintained by A or B, only the compensation payable by the company sponsoring the applicable plan may be considered. See, eg, Rev. Rul 68-391. For example, In determining the contribution payable to Participant X in A's profit sharing plan, only the compensation paid by A to X can be considered (ie, the compensation paid by B cannot be considered). Does anyone know of any rule that would allow compensation from A and B to be considered?

2. Vesting: Is it allowable to count Participant X's service with A in determining whether he meets the hours of service requirements in B's plan for purposes of eligibility? vesting? contributions? It appears such service is counted for purposes of eligibility (see Rev. Rul. 67-101, 73-447 and 81-105), but we want to consider it for purposes of vesting and contributions as well.