Payment of Termination Expenses

[chris]

Employer previously maintained two plans -- one MPPP and one PSP. Employer terminated MPPP as of June 30, 2003. 5310 was filed for the MPPP and still waiting on IRS to review. MPPP assets were paid out shortly after June 30, 2003. Employer wants to know if it can pay remaining termination expenses from the PSP. Employer's reasoning appears to be that since same participants are/were in both plans there should be no problem. Technically, I would think that the MPPP and the PSP are two separate animals and that payment of the remaining termination expenses should come from the employer directly and not by way of the PSP. Any comments or suggestions?

[Archimage]

I agree. You cannot pay plan expenses from one plan for a different plan. I am sure the plan document does not have this provision in it.