Decrease in distribution amounts

[eilano]

Plan terminated and distribution paperwork was prepared after 6/30/01 valuation report was prepared. Valuation reports are prepared quarterly. Executed distribution forms were returned from 90% of the participants to the plan administrator by 8/2001, however, the participants did not receive distributions until 11/2001, in which the distribution amounts were based on the 9/30/01 report. Participants are screaming due to lesser distribution amounts. Plan administrator wants TPA to rerun 9/30/01 report and show distributions as a liability but remaining 10% of participants would share in the loss for the third quarter (approximately 77% loss per participant if we show a liability for the third quarter). Are there any options available to the plan administrator to appease the participants that were paid out and the remaining participants?

[Fredman]

This is always a tough spot to be in and unfortunately I don't think there's much you can do now.

What if the market was up? Would the 10% remaining participants share in a 77% increase?

It works both ways.