Controlled Group Amendment Issues

[Guest Jeff Underwood]

I am reviewing a plan document for a client that is a controlled group. Each of the adopting employers has executed a signature page adopting the plan. The EGTRRA amendment, however, was executed by only the plan sponsor. Should all of the adopting employers also "sign off" on plan amendments? Any citations to support your answer would be greatly appreciated since we have a difference of opinions in our office.

[Mike Preston]

What does the document say? Typically, when there are multiple adopting employers, the plan will reserve the right to amend the plan to the primary plan sponsor. Once that is done, the adopting employers are automatically subject to the modification. Good practice would suggest (demand?) that the primary plan sponsor inform the adopting employers of the new provisions, but I've seen circumstances where that hasn't been done. Don't recall the repurcussions, though.

[Guest Jeff Underwood]

The document didn't address the issue, which was one of the reasons for my concern. The sponsor of the prototype (McKay Hochman) now says they will recommend that all participating employers sign any plan amendments.