db and dc merger

[Guest sue1jeff]

is it possible to merge a db plan into a dc plan rather than terminationg a dc?

ie is there anyway to move db money into a dc without offering annuity options to participants? thanks

[david rigby]

Several prior discussion threads related to this. Here is one:

http://benefitslink.com/boards/index.php?showtopic=25846

You can use the Search feature here: http://benefitslink.com/boards/index.php?act=Search&f=

In general, yes, plans can be merged. However, the process is not much different from termination. See IRS Reg. 1.414(l) [that is a lower case L]. W/R/T your second question, the participants in the DB plan will have the same options as if the plan were terminated, including taking a distribution (if defined by the plan) or an annuity.

There may be some relative advantages to merging or terminating. See your actuary or ERISA attorney for evaluation of the options.

(BTW, this assumes the plans are subject to ERISA.)