Belgarath Posted August 31, 2022 Posted August 31, 2022 I recall seeing some debate on this in the distant past, but I don't recall any consensus. Say an employer does a corporate resolution to make a discretionary match, or PS, then doesn't make it. Are they now legally required to make it? If not, shouldn't be a plan qualification issue, just revising valuation(s). (And let's assume there's no employment contract that dictates an employer contribution.) Many employers never end up doing a resolution. If they never did the resolution, then I presume the "failure" to make the contribution isn't a problem anyway? There may be a potential bankruptcy looming...
Peter Gulia Posted August 31, 2022 Posted August 31, 2022 Even without the overlay of how bankruptcy law alters or affects what would result under other law, I have not researched any question like this. I guess an analysis might consider whether the resolution was communicated to employees. If there is a meaningful potential for a bankruptcy or insolvency, whoever needs or wants an answer to your first question should lawyer-up. Peter Gulia PC Fiduciary Guidance Counsel Philadelphia, Pennsylvania 215-732-1552 Peter@FiduciaryGuidanceCounsel.com
Bird Posted August 31, 2022 Posted August 31, 2022 I think a second resolution saying "never mind" fixes this problem. I'm not a lawyer but I don't think a resolution is irrevocable. Nate S 1 Ed Snyder
Nate S Posted September 2, 2022 Posted September 2, 2022 I agree, a resolution is not binding, the action to be undertaken as a result of the resolution still has to occur.
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