Rev. Rul. 72-531

Revenue Ruling 72-5, C.B. 1972-1, 709, holds that a pension plan does not fail to qualify under section 401(a) of the Internal Revenue Code of 1954 merely because it grants credit for service as an employee with the immediate prior employer of each participant without naming such prior employers in the plan. That Revenue Ruling does not change the requirement set forth in Revenue Ruling 62-139, C.B. 1962-2, 123, relating to credit for service with a former employer that is specified in the plan, and Revenue Ruling 70-126, C.B. 1970-1, 95, relating to reentry into a plan after discontinuance of participation, that a qualified plan must preclude duplication of benefits.

Held, a pension plan that provides credit for service with the employee's immediate prior employer must contain a provision to preclude duplication of benefits if it is to meet the requirements of section 401(a) of the Code.

Revenue Ruling 72-5 is hereby clarified.