Expert: Allen - 9/10/2006

Question
I presently work for a hospital in NYC and my service tenure there is a little over 3 years.  I have been in a defined benefit pension plan up until this point (5-year vest).  I was informed this month that my group is being reorganized into a P.C., and my benefit plan is changing.  I will now have a cash contribution plan.

My employer seemed to have overlooked my service credit for the past 3 years, and the way current things stand, I have nothing to show for those years on the books.  Cash contributions will start Jan 2007 in the new plan.

My question is, am I entitled to an opening account balance in the new 401K equivalent to the calculated "value" of my old plan?  

thanks,
Brad  

Answer
I believe you should receive credit for whatever you earned during those three years. The benefit won't be vested as of yet but will become vested when you hit the 5 year mark.

I would check with the plan administrator. If you don't get an answer which makes sense to you, you can call the local office of the U.S. Dept. of Labor, Employee Benefits Security Administration (EBSA). They may be able to help you.