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definition of partial plan termination


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Guest username1
Posted

Where I can find the definition of partial plan termination and the vesting requirement if the plan is partially terminated(it is not in the SPD)? Can it be defined differently in different plan?

Posted

user - depends on the transaction - typically more than 20% or more reduction in plan participation w/in 12 or so months triggers a PT. see rev rul 72-439 and Halliburton v. IRS 100 t.c. 216 for the tax court's two cents re PT. Reduction in future benefit accruals could also cause a PT if the potential for reversion of asset increases. also look @ In re Gulf Pension Litigation 764 f.supp. 1149 for everything you ever wanted to know about horizontal and vertical partial terminations but were afraid to ask. that should get you going. hope that helps.

Guest username1
Posted

Thanks for the reply. Sounds very complicated and hard for me to find the references.

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