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Generally, plan termination resolutions will state that plan participants become 100% vested on the plan termination date.  If a termination is later rescinded by the plan sponsor or falls through due to say PBGC disapproval, is the 100% vesting locked in? Has anyone seen or used  language in a plan termination resolution stating  that should the plan revert to an "ongoing" plan status such 100% vesting will be inapplicable and the vesting schedule under Section x.x will apply?

Posted

i once had a plan rescind their termination resolution, after the effective date of their termination, but the underlying plan document didn't allow them to apply a vesting schedule that was lesser than what the the participants were subject to (since they were made 100% vested as of the termination date they couldn't apply a vesting schedule that was less favorable than 100% vesting). It was a Corbel document if i recall correctly, but i don't recall the exact language of the document. So, i say that to suggest that you look at the plan's documents to see if it is possible. 

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