Termiantion of DC and Surrender Charges

[Guest SMazliah]

Pursuant to the contract between the employer and the insurance company, a 401k plan has a surrender charge (first 10 years, decreasing percentage) for all withdrawals that aren't retirement, death or disability.

Within those 10 years the employer terminates the plan thus forcing all participants to have their funds disbursed and the insurance company takes a surrender charge out of every participant's account.

Is there any way for the participants to force the employer to pay this charge?

employer agrees in plan to pay "administrative expenses," but has stated this is not an administrative expense.

Are these provisions the norm (is there a br/fid duty claim for entering into this contract?)

Can there be a br/fiduciary claim for implementing the termination in such a way that each participant loses 7% of account?

Anything else you can think of???