Formal Plan Termination
Posted 31 October 2006 - 04:31 PM
Any creative solutions?
Posted 31 October 2006 - 07:36 PM
The only exception to this is if one Big Company acquired a wholly owned subsidiary of another Big Company. The exception says tht in this situation, the employees are treated as having a severance from employment, so the successor plan issues refered to above are irrelevant.
Posted 01 November 2006 - 11:36 AM
The other point raised by austin is that retained employees won't be (probably) entitled to distributions. You can still terminate the plan, but you will have to spin off their accounts to the buyers plan instead of offering each retained employee a distrubiton right. No big deal really, though.