What if I believe a partial plan termination has occurred?

If your company experienced a reduction in force, the first step is to determine which participants require acceleration of vesting. This would include participants who:

  • Left employment for any reason during the period in which the partial termination occurred and/ or
  • Still have account balances under the plan.

The next step would be to work with us to restore balances of participants who improperly incurred forfeitures because of the partial termination. If forfeitures have already been utilized to pay other qualified plan expenses, then your company will need to make the affected participants whole by funding the plan to restore balances. Please note that if forfeitures have not been used, then the forfeiture account may be used to restore the participant’s account balance. If the participant has already taken a distribution, then a corrective distribution of the forfeited amount will be issued to them.

If you believe a partial plan termination has occurred, please reach out to the plan administrator support team here.

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