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Posted

I might be overthinking this.  John Doe worked for company A.  They have a match with a last day (12/31) and 1,000 hr requirement.  John quits A in June and goes to work for B.  A and B sponsor the same multiple employer plan.  They are not related employers.  John did work 1,000 hours at A and did not work 1,000 hours at B.  John is a participant and deferred at both companies, since all his service counts for eligibility.  

Does he get the match?  He was not at A on the last day and did not have 1,000 hours with B.

Posted

For the document, "In the event an Employee is transferred between Participating Employers, accumulated service and eligibility shall be carried with the Employee involved. No such transfer shall effect a termination of employment hereunder, and the Participating Employer to which the Employee is transferred shall thereupon become obligated hereunder with respect to such Employee in the same manner as was the Participating Employer from whom the Employee was transferred."

So, I am now thinking they do get the match and B has to pay it.

Posted

I think you count the aggregated service from all employers as service with all employers at which he worked. I would say he gets match in A based on deferrals to Plan A and match from B based on deferrals to Plan B. Similar to someone switching between an employer's union and non-union plan, the total service counts for both, but you don't duplicate benefits or provide all in one plan unless the plans explicitly provide (more likely in the DB world).

Kenneth M. Prell, CEBS, ERPA

Vice President, BPAS Actuarial & Pension Services

kprell@bpas.com

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