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Guest JM123

Amending plan

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Guest JM123

Is it possible to amend a plan to change the way a benefit is calculated upon the occurrence of a contingency that has not yet occurred (and is not presently expected to occur)? For example, if one of the payment events is a change in control, and we want to amend the plan to provide that benefit will be calculated by applying a multiplier to the benefit that would be otherwise payable under the existing benefit formula.

For example, assume benefit formula would produce a benefit of $100k if participant separates from service. Amended plan would provide that if pmt event is a CIC, then it's 1.1 times the amount otherwise paid: $110,000. Alternatively, what if the multiplier is .9 times so that payment would be $90,000?

Assume benefits are not presently subject to a SROF.

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