Hi,
Does a former employer have to be related to the current employer in order to credit service with the former employer (for eligibility purposes) under the new employer's plan? I understand that the crediting of past service must not discriminate, but that a 5-year safe harbor rule applies. So, can the owner of a company be granted one year of prior service with his former employer but make all the employees wait 1-year to enter. The answer would seem to be no, but can't find it anywhere.

If anyone can help, that would be great.
Thanks
Lori

Does this help?

Hi,
Yes, it does. However, the conclusion seems to be that it is a gray area. I still need to read 1.401(a)(4)-11(d)(3)(i) to see if that helps as well.

Thanks for the link!