Can Spin Off Termination Include Active Participants (with Frozen Benefits)?

DB plan was closed to new entrants and partially frozen several years ago. Employees meeting service requirements continued to accrue benefits and accruals were frozen for all other employees. Plan sponsor wants to pay out benefits to vested termed participants and active frozen participants. Can they do a spin off termination and include active employees with frozen benefits in the spun off terminating plan? 

I can't find anything either way. Thanks!