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Plan Termination Date Revision


401_noob
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Do you know if it is possible to retroactively change the Plan termination date? 

For example if a sponsor terminated a plan effective 8/31/16, could they now say that the Plan is terminated effective 12/31/16?

I am not aware of any provision, but perhaps someone here is. I do know that choosing the effective date is a settlor function, but i don't know if that means that it can be changed. 

Thanks!

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The prior termination can be rescinded with proper notice. If this is a defined benefit plan subject to PBGC jurisdiction, they either have already filed a Form 500 or the termination is dead in the water anyway.  It may be necessary to rescind and start up a new termination (with any mandatory advance notice satisfied).  But it can certainly be done.  If a defined benefit plan, the funding must be reopened from the original effective date of termination to the new one.

I am almost positive that it is not possible to substitute a date in the past (12/31/16) for the earlier plan termination date (8/31/16).  Rescind and reterminate.

Always check with your actuary first!

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I would be careful with parts.  For example someone who was made 100% vested on 8/31/2016 but would have been less then 100% except for the termination and then terminated on 9/2/2016 would still be 100% vested in my mind.  I don't see how you take away a valid amendment that made people 100% vested by changing the termination date. 

There might be things like that if I thought harder about it. 

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