Frozen Benefits/Froxen Participation

[Guest merlin]

This client is a non-profit entity funded by private donations and government grants,so money is always tight. They would like to freeze benefits in order to minimize funding requirements. They are also concerned with needing an audit once they cross the 100 participant threshold. The DREC will be a concern too.

Can the plan be amended to freeze both benefits and participation?

[david rigby]

That is the usual meaning of "freeze".

I suggest a freeze amendment be explicit about freezing benefits, service, and participation. Also, look to see if there are ancillary benefits that you might want to eliminate or "tighten"; for example, a disability benefit is not 411(d)(6) protected.