Is Participant Investment Direction a protected BR&F?

[mgcpension]

A profit sharing plan currently being restated for PPA has "participant directed investments" language in the plan document. However, none of the participants have elected to direct their own accounts, so the funds are all in a pooled investment account, presumably managed by the trustee.

Can this feature be removed from the plan with the PPA restatement?

If so, does the effective date of the restatement need a prospective date? Or can it still be the first day of this plan year (1/1/16)?

[Lou S.]

Neither the right to any specific investment nor the right to participant directed investments is protected and can be removed.

[Bird]

Agreed. Definitely not a protected benefit. I don't think you could technically do it retroactively, but if no one has exercised that right, it becomes words on a piece of paper. (Having said that, I think I'd have a special prospective effective date just to be clean.)