Leaderboard

Oftentimes when a recordkeeper is being replaced, they will have your client sign on to their Adoption Agreement to enable them to service your account better since they are more familiar with the provisions. Included in this would be the appointment of a Trustee. Both the employer and the Trustees would need to sign this document. As with any Plan documents, a Board Resolution would accompany that and be signed by the appropriate people. Participants do not sign off on anything, however, as stated by others they must be notified and if there is any blackout period whereby they are not able to direct their investments (assuming it is participant directed), take a loan or a distribution (assuming these are available) then blackout notices must be provided indicating the time period that these will be unavailable and giving them the time to make changes or requests before the blackout begins.

To be clear I am assuming these are individual directed investments. https://www.law.cornell.edu/cfr/text/29/2520.101-3 https://www.irs.gov/retirement-plans/retirement-plan-participant-notices-when-a-plan-may-impose-a-blackout-period

When my clients switch recordkeepers--say from Nationwide to John Hancock, we didn't do any resolution and the participants didn't have to approve, but they were notified. Usually there is a team at the new provider to assist you. There may be paperwork from the MetLife the client will need to complete. I'm not sure if my situation is exactly like yours, though.

I know some people on here will argue that it is a mistake of fact, with at least informal guidance saying it could be considered a mathematical error. I have seen it posted here before. I agree with you though, a change in circumstances is not a mathematical or clerical error to me.

In case you need safety in numbers, Mel_1999, I agree 100% with Bird. You could probably get by IRS exam with just the resolution, but if that's all you do there is large risk that plan will not be administered correctly and eventually you will need to fix in EPCRS.

No

There's a potential debate about whether a resolution can rise to the level of a plan amendment but effectively, that's what you need - a plan amendment. It needs to be memorialized for future restatements, SPDs, etc. Depending on the number of people involved, it might make sense to amend Plan B to include that feature for everyone - it's not a huge giveaway and keeps things simpler going forward to have everyone with the same benefits.