Guest Theresa Posted March 7, 2001 Share Posted March 7, 2001 We have an employer that maintains a mpp and a psp, both plans are being terminated as of May 15, 2000. The last contributions made to the mpp were for the PYE 12/31/99. Is there a required minimum contribution due for the 2000 plan year up until the termination date? The mpp has issued the required participant notices and all benefits were to be frozen as of 5/15/00. Upon distribution of assets do gains/losses get allocated to the current date of distribution? If not, since the plan has incurred losses since 5/15 does the employer have to make a contribution for the difference? The plan only has 6 participants. Link to comment Share on other sites More sharing options...
david rigby Posted March 7, 2001 Share Posted March 7, 2001 I think that freezing the plan at 5/15/2000 will freeze new benefit accruals/contributions and participation but won't freeze the investment of the exising accounts. What does the plan say about how the money is invested? The plan must define how often earnings on invested monies are allocated (at least once per year), so the assets are what the assets are. I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice. Link to comment Share on other sites More sharing options...
Bill Berke Posted March 12, 2001 Share Posted March 12, 2001 The mpp freeze only works if a) no one has accrued 1000 hours, or b) there is a "last day" clause in the plan. And you must consider if the mpp was top-heavy without a "last day" clause. Link to comment Share on other sites More sharing options...
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