New IRS Revenue Ruling 2003-64 on Vesting

Benefitslink provides us with IRS Revenue Ruling 2003-65 to be published soon. The ruling provides that years of service earned following the establishment of a plan must be counted for vesting purposes under a frozen plan which is later amended to provide for a new benefit formula. The ruling also provides: “If, instead, the accruals are earned under a new plan maintained by the same employer and the new plan is merged with the frozen plan, then this holding also applies, so that, after the merger, service after the frozen plan was established must be taken into account for purposes of vesting in any benefit accruals under the new plan.”