Two plans merge...plan1 ER pays fees & plan2 plan pays fees..,

[Guest DVW]

Facts: Employer sponsors 2 plans (1) a 401(k) plan and, (2) a Davis-Bacon Pension plan. The Employer pays all plan fees except the initial participant loan fee for the 401(k) plan. The Davis-Bacon plan pays all fees/expenses for itself. The Employer wants to merge the two plans.

Question: Once the two plans are merged into one, can the Davis-Bacon plan "source" contine to pay all plan fees and expenses relative to its participants? In other words, the Employer wants the original plan fee payment arrangement to continue just as if the plans were still two separate entities - ER pays for 401(k) plan "source" (EE deferrals only - no P/S or Match), and the Davis-Bacon plan "source" pays all of its fees and expenses.

I've not seen this situation before. I'm not seeing anything at the DOL site that specifically addresses this issue. Anyone have any clues?

Thanks in advance.