Repayment agreement

[Guest jim williams]

We administer a DB plan and are presenting to a top 25 HCE the option to receive his full accrued benefit in the form of a lump sum if he agrees to sign a Repayment Agreement. The plan is less than 110% funded. Under what circumstances would the Plan Administrator have the right to enforce the agreement and have the employee pay back to the plan all or a portion of his lump sum distribution?

[JAY21]

Upon a plan termination if the plan was insufficiently funded.

[could be me maybe not]

In other words, open ended, which is why I think these rules are nearly impossible to comply with unless the participant has outside collateral. Even then, I would think that real good ($$$$) legal advice and drafting would be needed. And you might also need an unusually cooperative financial institution.

Dissenting opinions are welcome. Anybody done this and dotted all the i's?