Allocation Formula change on last day of plan year

[JustnERPA]

An Employer's profit sharing allocation was pro-rata and included a last day requirement. On the last day of the plan year, an amendment is executed to change the allocation formula from pro-rata to individual rate groups.

Because the amendment was executed on the last day of the plan year, are they stuck with a pro-rata allocation for that plan year?

[CuseFan]

Yes, as of that date everyone still employed has earned the right to an allocation on that (pro-rata) basis.

[Doc Ument]

To amplify CuseFan's response, I usually express this to clients in such a way that they cannot read it too fast, by saying something like "the deadline for such a plan to change its formula is the day before the last day of the plan year, e.g., December 30th for a calendar year plan."