An plan termination was treated as a merger; is there a way to correct

[Richard Anderson]

An employer has two plans, a MP and PS. The MP plan was terminated and received a D letter on the termination. All assets of the MP plan were then moved to the PS plan in a trustee-to-trustee transfer, as if it were a merger of the MP and PS plans, not a termination. Shouldn't the participants have been given the option of taking a cash distribution or rolling it to the PS plan? The plan document says that on termination of the plan the Employer will direct that the plan assets be distributed to the participants. Can (or should) the MP assets, that are now in the PS plan, be distributed since they should have been distributed when the MP plan terminated?