Plan termination

[Guest 2013Martignette]

In the case of a plan termination, is it a requirement that the plan agreement provide (in writing) the right to terminate the plan, or is it enough that we follow the procedures for discretionary termination by the employer? If someone has an answer, can you direct me to where to look in the code? Thanks

[Guest ohioattorney]

"Except as otherwise provided in paragraphs (j)(4)(ii) through (xiv) of this section, the plan need not set forth the exception in writing, and provided all other requirements of this section are met, the making of such a payment or the addition of a plan term permitting the making of such a payment will not constitute the accelteration of a payment. . . ." page 372 pdf version of final regulations. Plan termination is (ix) on page 376.

[jpod]

There is a problem if there is no language authorizing the employer to terminate without employee consent. Absent the employer's ability to unilaterally terminate, the employer can't terminate without employee consent, and therefore it can't avail itself of the termination exception to the anti-acceleration rule.