Transitional management of retirement plans due to acquisition

[Guest keep it simple]

I realize this is a very broad topic, but is there anyone out there would could help me define what needs to take place during a transitional period due to acquisition of a retirement plan?

I am familiar with the management of H&W plans during a transition to an outsourced vendor but am not familiar with the management of pension plans taken over by an organization due to an acquisition.

Any and all information would be appreciated.

[Effen]

Could you be more specific? What do you mean by "transitional period due to acquisition of a retirement plan?"

What needs to take place from whose perspective? Who acquired the plan? What kind of plan is it? What type of "outsourced vendor"?

[david rigby]

Effen's request for clarification is valid. However, let me try:

What is probably meant is that the sponsor of one or more employee benefit plans is being acquired. If so, it is essential that the buy-sell agreement be carefully examined. (Preferably, someone with EE benefits experience will have input before the agreement is finalized, but that is ususally a crapshoot.) There are many variations of result.

But whatever the form (usually, the seller retains the plan responsibility or the buyer gets it), the plan(s) must continue to be operated according to the terms of the document. The buy-sell might specify something specific, thus it must be examined.

Much more discussion is possible, but that is the nutshell.

[SoCalActuary]

From the initial posting, I would guess that you are an HR person with a new responsibility for the 401k plan. Here are several issues you should manage:

1. Does the plan have different benefits than your other employees? Is this a good or bad thing?

2. Is the plan managed properly? Are deadlines being met, documents up to date, funds being transferred properly, expense charges reasonable?

3. Is the investment platform appropriate? Does it provide adequate range of investments? Can you get a better result by moving to the platform of your existing company? If so, who will manage the transition, black-out periods, investment education, etc.?

4. What can you learn from the people handling it now? What do the vendors do? Can you get a presentation from the existing investment, administration, pension attorney, or other persons responsible, including the in-house person?

Consider spending a few dollars getting independent advice from a consultant who is not trying to sell you a solution. There are a few who are truly independent.