If the company I work for is sold what will happen to the profit-sharing plan?

Question

Can the new owner make use of the funds however he wants or are there rules for usage of said funds? This is a deferred plan.

Answer 1

The seller and the buyer have to make arrangements about what to do with those funds, if there are any. The chances of a new owner continuing a profit sharing plan from a previous owner are very small.

Answer 2

Depends of how deal is written. I would think any monies earned before sale was final is still yours. That being said new owners can keep current profit share change it or remove it! Normally changes occur over time and not right away. No matter what new owner say things WILL change! Profit share was a benefit of working for company "A" but now company "B" owns it. They are not legally bound to any promises made by company "A" What would have been better is if your company was employee owned. If that had been case your shares would have been bought and monies go to you. Example my husband worked for an employee owned company in 90's it was bought by another company at ?$ per share my husband got a check for nearly $90,000.00 I wish you much luck but I will advise you this watch closely for subtle changes this will give you insight as to how future will look!

Answer 3

But what if the new company did not take on the old company plan ? My old owner is also the plan administer . He say's he has no time limit to distribute the fund . And says we can't make him . Now what ???

Answer 4

are you fully vested in the plan? if so then the money is yours but it is up top the plan administrator as wheter or not you can get to it. the plan administrator would be the person to talk to.

Answer 5

actually when our company was sold back in 1989..they paid us all in cash. it was a really nice check ..