Restatement when Plan Sponser MIA

[Zorro1k]

Individual receiving benefits from plan is the only remaining participant in plan. Plan sponsor is no longer around. Advisor wants to know if plan needs to be restated for PPA. If not, why? If so, how should they go about restating?

[My 2 cents]

Who was the trustee of the plan? They probably still have the authority (and the duty, probably) to terminate this plan.

There was a plan fiduciary, and they are probably still PERSONALLY liable. Who signed the last Form 5500 filing? Maybe there were no damages to sue over, but (speaking as a non-lawyer) a threatening-sounding letter might prompt them to formally terminate the plan.

Last time I looked, plan participants had neither the authority nor the responsibility to restate a plan.

[Lou S.]

Yes plan needs to stay current with all applicable law including restatements.

How is the 5500 being filed if the sponsor no longer around?

Why on earth hasn't this plan been terminated if the sponsor is not around and only paying out benefits?

Lastly is this a DC or DB plan? They have different restatement deadlines.

[david rigby]

Plan sponsor is no longer around.

What does this mean?

A plan must have a sponsor. If the sponsor no longer exists, the plan provisions may automatically terminate it.

[CMarkB]

You should consult the DOL abandoned plan rules and how to terminate an abandoned plan. 29 CFR 2578.1

[Zorro1k]

Thanks. I think the orphan plan correction route or contacting the DOL abandon plan project is the way to go.