Distributions from Multiple Employer Plan

[Guest VEBA Las Vegas]

I have a client that is a participating employer in a 401(k) multiple employer plan and the client will be withdrawing from the plan. Looking at the 401(k) distribution rules, the withdrawal does not appear to be a severance from employment for my client's employees, so this rule likely will not allow distributions to plan participants. Has anyone thought about whether such a withdrawal amounts to a plan termination for the withdrawing employer's employees (thus allowing distributions)? I cannot find guidance directly on point but it seems this must be the case or the employees would be stuck participating in the plan until age 59 1/2.

Thanks!

[Guest VEBA Las Vegas]

?