PJ2009 Posted June 9, 2009 Posted June 9, 2009 I know that a conversion of a DB plan to a DC plan entails the termination of the DB plan, in accordance with PBGC rules. Does anybody have cites for this? THANKS! Thank you. pj
PJ2009 Posted June 9, 2009 Author Posted June 9, 2009 1.411(d)-4, Q & A 3 Thank you! I also found an ERISA cite - Section 4041(e). We are covered!! Thank you. pj
Guest Spock Posted June 12, 2009 Posted June 12, 2009 If a sponsor wanted to convert a traditional DB plan to a cash balance plan, and give the employees the choice to stay with the old traditiaonl benefit or convert it to a cash balance account balance, does that avoid the plan termination issues?
Effen Posted June 12, 2009 Posted June 12, 2009 Yes, but you need to comply with the equally onerous regulations involving participant choice. If you give choice, the required notices and explainations involve are a bit extreme. Much simplier to just convert and not give choice. There were some proposed regs released around February 2004. The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice.
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