Can You Change the Plan Sponsor Upon Restatement?

[Susan S.]

In a controlled group of corporations, Company A is the current plan sponsor and Company B is a participating employer. We are restating the document for PPA and they want to make Company B the sponsor and Company A a participating employer. I thought this would be fine as long as the change was on the 5500. Their attorney says that if we change the sponsor, it is not considered a restatement. Is that right?

[ETA Consulting LLC]

Sure, you can! A "restatement" is merely drafting the plan onto a new adoption agreement (which now incorporates all the previous good-faith amendment language into the core of the document and has now received a favorable determination letter).

An "amendment" is merely a change in the actual terms of the plan.

You can 1) RESTATE and 2) AMEND at the same time; one has nothing to do with the other. You are REQUIRED to restate while you have the option of amending during that process.

Good Luck!

[GBurns]

While you can 1) RESTATE and 2) AMEND at the same time, I do not think that that is relevant. The OP wants to CHANGE the PLAN SPONSOR.. That does not seem to be either a RESTATE or an AMEND. However, since it is a controlled group and Company B is already a participating employer, a change in Plan Sponsor might be allowed, but, that has nothing to do with either Restating or Amending. It is a separate issue for which I suggest that you get clarification and guidance from legal counsel.

[QDROphile]

How does one change the plan sponsor if not by restatement or amendment? A restatement is an amendment, but not every amendment is a restatement.