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How does an employer reverse (unterminate?) a plan termination?

John A

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The sponsor of a money purchase pension plan adopted an amendment terminating the plan. The sponsor would now like to put the termination "on hold" for about 9 months to resolve some issues before proceeding. What steps should the plan sponsor take if 1) the participants have been notifed and 2) if the participants have not been notified with a proper 204(h) notice? The sponsor never took any steps to submit the termination for a determination letter. Can and should the plan sponsor adopt an amendment declaring the first termination amendment null and void?

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That is what I would do. The plan was terminated by amendment. Do another amendment to cancel the termination.

Caution: the termination probably also awarded 100% vesting. Your second amendment cannot reverse this.

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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