Guest BenefitsMind Posted July 6, 2010 Report Share Posted July 6, 2010 The Plan has 9 adopting employers, all part of a controlled group of businesses. Three of the adopting employers laid off between 20 and 30% of their workforce (most of whom were participants in the Plan). Overall the Plan lost approximately 10% of its participants to the layoffs of the 3 adopting employers. The auditor of the Plan says that the Plan most likely had a partial plan termination only with respect to the 3 adopting employers that laid off over 20% of their plan participants and all affected participants of those 3 adopting employers should be fully vested. The employers do not want to vest the affected employees. I say that partial plan termination is determined by looking at the Plan as a whole and therefore, since the overall layoffs total less than 20%, there is a presumption that no partial plan termination occurred. Any thoughts are greatly appreciated. Thanks! Link to comment Share on other sites More sharing options...
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