Multiple Employer 401k Plan Termination

[Guest BenefitsGal5]

If the assets of a multiple employer plan are held in a single trust and one of the employers terminates may the remaining employers use the forfeitures resulting from the termination to offset future employer contributions?

For purposes of this analysis, assume that forfeiture assets have been used to fully vest affected participants and that additional forfeiture assets remain. Assume also that the plan document is silent on this point.

[Below Ground]

That is my understanding. Off hand, I don't know where to tell you to get confirmation. I seem to recall that this issue is resolved by the fact that monies belong to the trust, not the adopting employer, and are used exclusively for the benefit of all participants. You may consider reallocating the forfeitures to the employees of the terminating employer before the withdrawal, which of course, would resolve the issue "cleanly".