Forfeitures

[Guest Betsy Oakey]

I am restating an established plan for GUST. Old document calls for the allocation of match forfeitures (which of course sets up all those little accounts for elig. participants who are not participating). Can I change this provision in the restated document so that forfeitures, as a result of match, can be used to reduce match instead of being reallocated without having to go through the "notify participants", "board resolution", "separate amendment" thing? I don't think I am violating any anti-cutback rules. I will not be altering any accounts that have already been established, I will just be altering how the forfeitures are dealt with in the future.

[Blinky the 3-eyed Fish]

You certainly can change how forfeitures are allocated prospectively. You just can't alter it retroactively to cutback an allocation already earned by the participants.

Also, depending on your restatement effective date, you may have to have both sets of provisions in the restated document.