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Hello Perplexed, the short answer is nothing really changes. Still need to make sure it's filed with the court and accepted by the plan, etc., but termination does not necessarily change anything. Specifics depend on the type of plan (defined contribution vs. defined benefit) and if the participant was vested in the plan at the time of termination, but assuming there is a vested account balance or accrued benefit then the QDRO can/will still apply.

You really need to check your plan's QDRO procedure. Some of them will have rules that say if you have been given notice there might be a DRO on the way you are to put a hold on the account. Leaving aside the strong opinions on this board that object to such procedures if it is there you have to follow it. If it isn't there and the person asks for the benefit I don't think the plan can say "no". This answer to this is most likely answered by the plan document and QDRO procedures.

Keep in mind what Bill said: If the plan was filing as a small plan (either on an SF or Schedule I), they can continue to do so until the participant count is MORE THAN 120 on the first day of the Plan Year. Still, I would send letters to those affected gently reminding them they can move their money. Include either the paper form and the Special Tax Notice, or explain in the letter who to contact the provider to begin the withdrawal (a lot of platforms are going electronic-only, or at least electronic-preferred).