What to do in a 401(k) merger where the plan to be merged was not prop

[Guest ejohnson]

Help! What can we do in the case of a merger of two 401(k) plans (a smaller into a bigger) where we failed (a long time ago) to get proper written authority to merge the smaller into the bigger plan by amending the small plan document. All the investments were liquidated and moved into the new plan, it seems without authority. Also someone messed up and required the employees of the smaller, merged corporation to ENROLL in the bigger plan in order to participate (i.e., they didn't automatically become participants in the bigger plan and wouldn't get to contribute or get matching contributions unless they enrolled). Has anyone ever dealt with this? What can we do?

[Dan]

The scenario you descibe is more complex than is appropriate for resolution on this forum. The best advise is to seek competent help by contacting an ERISA attorney. Good Luck.

[LCARUSI]

I agree with Dan that this is a complex situation, but it would still be nice to hear comments and general advice from others as to how ejohnson might resolve this situation.

[Guest ejohnson]

Thanks - we are in the process of contacting counsel but others' practical input/experience will be greatly appreciated. Another fact: it also seems that participants from the smaller plan weren't able to contribute or direct employer contributions under the bigger plan after the merger-of-plans date into all of the investment vehicles we offer under the bigger plan; although not intentional, these folks were discriminated against at least until the end of the blackout period. Someone is saying that that discrimination coupled with the enrollment requirement threatens us with the finding that the smaller plan TERMINATED and didn't merge (even if we can prove there was a valid merging-amendment). Your thoughts/questions will be greatly appreciated: this is a sticky situation!