Termination of an Abandoned Plan by a third-party bank as custodian???

[Guest RMM]

I double-listed this in the termination board:

The plan sponsor committed suicide. The trustees and participants are all gone. The company was in horrible shape. No beneficiaries have stepped forward to claim an account sitting with a bank because creditors would immediately attach the account. The bank does not want to have to continue to file 5500s and be responsible for this account. The bank wants to terminate the plan.

Can the bank step into the shoes of the sponosr and terminate the plan?

My feeling is that this may turn on state corporate or escheat law. I found a case Chambers v. Kaleidoscope which says the court can terminate and distribute an abandoned plan, but there is no other guidance.

Any suggestions? Please? Thanks.

[Guest PeterGulia]

RMM, I've spent a lot of time on these "orphan plan" issues, including both ERISA and Pennsylvania law aspects. If you represent the bank (as opposed to the plan administrator), I'm willing to talk about it with you, but not in writing on the message board. I'd call you at Blank Rome, but you didn't give your name. If you like, call me at (732) 514-2008.

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