Looking for Plan Amendment Language

[Guest thepensionman]

We have a client that is terminating his defined benefit plan and rolling the assets into a new profit sharing plan; there are 3 participants and are all family members.

I am looking for plan amendment language that basically freezes the defined benefit assets as of the date of termination; any subsequent increase in the market value of those assets is disregarded and treated as profit sharing trust earnings.

Any help??

Thanks,

ST

[E as in ERISA]

Is the plan over/underfunded? If overfunded, will there be an increase in benefits as of the date of termination?

Have you looked at http://benefitslink.com/IRS/revrul2003-85.html

[david rigby]

IMHO, this is not the place to suggest specific language for plan amendments, etc. If not already included, I suggest using an experienced ERISA attorney to provide proper plan amendment(s). Possible variation depending on nature of plan. The attorney will tell you, first, that terminology can be important, and that the phrase "...terminating his defined benefit plan and rolling the assets..." might (!) be misleading and/or incorrect.

I also recommend that the DB plan be frozen first, and then terminated. These can be in the same amendment, but they should both be explicit.

[Blinky the 3-eyed Fish]

The way you are wording what you want to do cannot be done. You cannot stipulate that DB assets are indeed PS earnings. Now because you have only 3 family members who are the participants, through waivers or allocation of excess assets, you may be able to get an end result that is the same. How the language is worded will be SPECIFIC to your situation. Where is the actuary here, as he/she should be the one to help.

[could be me maybe not]

I think that it cannot be done period.

[Guest Donkey Kong]

I think the Red Sox grew their hair long to hide the needles and steroid cream from onlookers.