Jump to content

Permitted Disparity


Recommended Posts

Posted

Current MPPP is integrated with Social Security. E/er also has a PSP. E/er considering terminating the MPPP within the next year (e/er does not want to terminate and distribute assets now given the market fluctuations). Also, both plans are to be amended for GUST shortly. As e/er is considering eventually terminating the MPPP, e/er wants to amend the PSP to add integration with Soc. Sec. It would seem that if e/er froze the MPPP (allocation formula to 0% of compensation...) the e/er should be able to amend the PSP to add integration with Soc. Sec.. I have yet to research it but this would not seem to run afoul of the "only one plan providing for disparity" rule. Any suggestions??? Thanks.

Posted

I guess the amendment of the allocation formula to 0% of compensation in and of itself would suffice since no disparity can take place where there is no contribution. The amendment would replace the allocation language incl. disparity with 0% of compensation. Given the last day of the plan year employment requirement (the plans have a 6/30 year end) assuming the MPPP is amended shortly after 7/1, then no participants will "benefit" under the MPPP for the plan year beginning 7/1/02. So obvious I missed it.....

Archived

This topic is now archived and is closed to further replies.

×
×
  • Create New...

Important Information

Terms of Use