Partial Plan Termination: Controlled Group

[Guest BenefitsMind]

The Plan has 9 adopting employers, all part of a controlled group of businesses. Three of the adopting employers laid off between 20 and 30% of their workforce (most of whom were participants in the Plan). Overall the Plan lost approximately 10% of its participants to the layoffs of the 3 adopting employers. The auditor of the Plan says that the Plan most likely had a partial plan termination only with respect to the 3 adopting employers that laid off over 20% of their plan participants and all affected participants of those 3 adopting employers should be fully vested. The employers do not want to vest the affected employees. I say that partial plan termination is determined by looking at the Plan as a whole and therefore, since the overall layoffs total less than 20%, there is a presumption that no partial plan termination occurred.

Any thoughts are greatly appreciated. Thanks!

[david rigby]

Does this previous discussion help?

http://benefitslink.com/boards/index.php?showtopic=17171

[Guest BenefitsMind]

Perfect! Sorry I didn't find it on my own. Thank you so much!