Draper55 Posted April 12, 2019 Posted April 12, 2019 Can a plan termination be undone by a simple sponsor resolution? If it's a db plan could it also be unfrozen in the same resolution?
david rigby Posted April 12, 2019 Posted April 12, 2019 Although not recent, I've seen it happen. I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
CuseFan Posted April 15, 2019 Posted April 15, 2019 Absolutely. We have had some DB clients stop their plan terminations at various stages for various reasons - market losses, annuity costs. We've also had plans that were frozen for a few years decide to unfreeze, so that happens as well. Have never seen a plan freeze in anticipation of termination and then halt the termination and unfreeze - but there is no prohibition against it. Luke Bailey 1 Kenneth M. Prell, CEBS, ERPA Vice President, BPAS Actuarial & Pension Services kprell@bpas.com
Luke Bailey Posted April 16, 2019 Posted April 16, 2019 Additionally, note that the PBGC's rules provide that if you fail to comply any of the Standard Termination Timeline milestones/requirements, you will generally have an ongoing plan, subject to their providing discretionary relief. See. PBGC reg. sec. 4041.31(e)(1). Luke Bailey Senior Counsel Clark Hill PLC 214-651-4572 (O) | LBailey@clarkhill.com 2600 Dallas Parkway Suite 600 Frisco, TX 75034
JustnERPA Posted April 16, 2019 Posted April 16, 2019 Adopt a resolution to rescind the previously adopted resolution to terminate the plan.
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