Company ABC participates in a Multiple ER Plan within a PEO arrangement. Employee with Company ABC terminates employment, but continues to work for Company DEF, which happens to be another participating employer within the same arrangement. Is there a distributable event here or would you transfer the assets just as if you would transfer prior credit for service, etc. (in accordance with the plan document of course)?

Thank you!

Jim Kais,

Please review the following to see if they can help with your question. Unfortuneately, there appears to be two answers to this question:

1. Rev. Rul 80-128
2. GCM 39384

Also, does the plan document maintained by the PEO address movement within participating employers of the PEO?

cease