Multiple employer plan and termination

[Guest friedbrain]

Can a multiple employer plan make distributions to ps when an employer ceases to be an adopting employer of the plan without first getting a favorable IRS determination? The plan sponsor is telling us that we don't need one. It's my understanding that at least a Form 5300 has to be filed but I'm not sure if this is enough.

[Guest efringe]

This question constantly comes up. Is a terminating 401(a)PS plan required to file for a letter of determination? Required, no. Although, it might be advisable if there are any concerns or special circumstances that could create complications such as a merger or aquisition. Clearly, the buyer and/or their representation should never overlook this area when developing a purchase agreement. At minimum, the purchase agreement should contain a hold harmless provision as it relates to ERISA and the benefit plan activity and liabilities prior to purchase.