retbenser Posted August 11, 2010 Share Posted August 11, 2010 The objective is to change the benefit formula. (1) What is the procedure to amend the plan? (Corporate resolution, interim amendment ... ?) (2) Is there a possibility IRS will reject the amendment? thanks. Link to comment Share on other sites More sharing options...
retbenser Posted August 11, 2010 Author Share Posted August 11, 2010 Is an IRS approval required? Or is the corporate resolution plus signed Amendment enough. Link to comment Share on other sites More sharing options...
My 2 cents Posted August 11, 2010 Share Posted August 11, 2010 The plan document itself must specify who has the authority to amend the plan. It will usually be the plan sponsor or the principal employer, although it could be the pension committee or the benefits committee. But the plan will specify. And things have to be done that way. Theoretically, if procedures are not properly followed (i.e., if the person who signed the amendment did so without valid authorization), the IRS could challenge the validity of the amendment. Not sure if that happens with any frequency. It is probably more likely that plan participants will litigate over that point. Always check with your actuary first! Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now