What happens when a top hat plan participant is no longer eligible?

By Guest newtobenefits
September 26, 2008 in Defined Benefit Plans, Including Cash Balance

https://benefitslink.com/boards/topic/39877-what-happens-when-a-top-hat-plan-participant-is-no-longer-eligible/

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Guest newtobenefits

Posted September 26, 2008

What happens when a top hat plan participant is no longer eligible to participate in the top hat plan, ie. he is demoted? If you yank him from the plan and pay his account, wouldnt this run afoul of 409As prohibition on acceleration? But it would seem that based on ERISA/DOL requirements you'd have to pull him from the program.

Thoughts? Citations to authority is greatly appreciated.

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