ERISA-Bubs Posted June 3, 2022 Report Share Posted June 3, 2022 We have a group of employers that are somewhat related, but definitely not considered the same "Service Recipient" under the 409A Regs. But, they all have identical Nonqualified Plans. We would like to combine the plans into a single plan. We would take pains under the Plan to make sure the definition of "Employer" was a reference to the individual Employer the Service Provider works for, including that the Employer is responsible for benefit payments out of their own general funds, and the Employer's creditors have access to those funds in the event of bankruptcy/insolvency, etc. Does this work? Some concerns I have are: Say one Employer goes bankrupt and their creditors wipe them out so they can't pay benefits under the Plan -- is there any risk the other Employers are on the hook for benefit payments for the bankrupt employer? Say one Employer goes bankrupt, would their creditors have any claim over accrued benefits owed to the Service Providers of other Employers under the Plan? Are there any other rules that would prevent a combined Plan just as a matter of statute or regulation? Thanks in advance! Link to comment Share on other sites More sharing options...
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