Plan Mergers - Change in Equivalencies

I think this is a no-brainer; but wanted to get other's thoughts.  Plan A's base plan doc uses a 190 HOS as an equivalency and is merging with and into Plan B, which credits HOS on an hour for hour basis.  Plan A will merge into Plan B effective Jan 1 and both use calendar year computation periods.  Under Plan A's adoption agreement, all contributions made under Plan A were immediately fully vested and all Plan A participants were immediately eligible upon hire.  Plan B provides for a non-elective contribution for certain participating employers with graduated vesting schedules (but former participants in Plan A will not be employed by one of those participating employers as of the date of merger).  In the event that a former Plan A participant becomes eligible for a nonelective contribution under Plan B after the merger, I see no reason why Plan B cannot credit vesting service HOS on an hour for hour basis (even though Plan A would have used a 190 HOS equivalency).  To me this is a no-brainer -  but wanted to see if others agree; because, well, the service crediting rules are complicated and I'm not that smart.    Thank you for reading.

I don't see any problem with the hours of service rule for the participants starting 1/1/2026 for the Plan A participants merged into Plan B.

You state that Plan participants are immediately 100% vested and Plan B are subject to graduated schedule. I'd make sure you are in compliance with any change of vesting schedule rules for Plan A participants merged in to Plan B to avoid any potential cutbacks. 

Agreed.  Thank you.  The change in vesting schedule would apply only to nonelective contributions made solely under the terms of Plan B (and only w/r/t certain participating companies in Plan B).  I dont think we have to preserve Plan A's immediate vesting for contributions made solely under the terms of Plan B. Let me know if you disagree. 

I think it might depend on the nature of the merge and whether or not the sponsor of Plan A was acquired in a stock or asset transaction or if the Sponsor of Plan A and Sponsor of Plan B are part of a controlled group or not.