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Seventh Circuit Again Considers Partial Terminations of Retirement Plans
McGuireWoodsLink to more items from this source
Jan. 8, 2015

"[T]he Seventh Circuit [recently] revisited the topic of partial termination in a class action that had been litigated for almost 19 years and involved five appeals.... [T]he court reaffirmed its prior holding in a 2000 Matz decision that a significant corporate event need not occur solely within a single plan year, and that corporate events that occur over a multi-year period can be combined for purposes of measuring the percentage by which plan participation was reduced, if those events are related.... As guidance as to partial terminations is limited, the employer should take Matz into account in making this determination even when the situs of the plan is outside the Seventh Circuit." [Matz v. Household Int'l Tax Reduction Investment Plan, Nos. 14-1683 and 14-2507 (7th Cir. Dec. 24, 2014)]

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