Termination of Participating Employer portion of plan

[DLavigne]

If a participating employer wants to terminate their portion of the plan, is the only way to do that by creating a spin-off plan and terminating it? Is it possible instead to simply terminate the participating employer's portion of the plan and allow those participants to take distributions? Terminating the participation agreement does not allow participants to take their monies from the plan and this is what they want to do. Thanks.

[John Feldt ERPA CPC QPA]

The plan document likely spells out the available options. I've seen MEPs that allow a participating employer to terminate and distribute. Is this a MEP, or a controlled group/ASG?

[DLavigne]

Thank you! Stupidly, it never occurred to me to look in the document. I've looked in other reference material, but not there. Yes, it does address it (this is an MEP) and it does say the MEP can terminate and distribute assets. So, thank you for pointing me in the right direction.