Company A, a health care organization owns 34% of company B. They also provide managerial services for Co. B. On 12/31/04 the management contract expires and at that time the employees that provided those services as Company A ees become Company B ees.

Company B wants to create a plan on 1.1.05. Do they owe prior service and vesting to the former company A ees?

Would there be any reason why Company A would be required to provide 100% vesting to Company A when the rollover into Co. B?