Plan Terminations

Retirement Plan Termination: Expert Guidance for a Seamless Transition

When a retirement plan no longer meets a company’s evolving objectives or workforce needs, it may be time to consider a plan termination or transition. Whether due to a change in business direction, merger, sale, or bankruptcy, the decision to terminate requires careful planning and expert support to ensure a smooth conclusion with no unexpected issues for fiduciaries or participants.

PSI’s Comprehensive Termination Support

PSI’s ‘A’ team of accountants, actuaries, attorneys, and administrators is equipped with the knowledge and experience to handle every legal, financial, and regulatory detail of plan termination. If a new retirement plan is needed, PSI can guide clients through a seamless transition, leveraging our expertise to create a plan that aligns with updated business goals.

Reasons for Plan Termination

Retirement plans may be terminated for a variety of reasons, including:

  • Company bankruptcy or closure.
  • Merger or acquisition by a new entity.
  • Misalignment of the plan with the current business model, prompting a switch to a more suitable plan.

The same precision and attention to detail that go into designing a retirement plan are essential during its termination. PSI’s deep well of experience and expertise is invaluable in navigating the complexities involved, from regulatory compliance to seamless participant transitions.

PSI’s Termination Services Include:

  • Calculating participant balances, ensuring all contributions are accounted for up to the termination date.
  • Verifying the original plan provisions for termination rights and setting a termination date.
  • Ensuring plan compliance with all effective legislation up to the termination date.
  • Conducting a comprehensive audit to ensure operational compliance and avoid IRS penalties.
  • Requesting determination letters for all amendments and terminations, confirming regulatory compliance.
  • Filing all necessary forms and reports, ensuring no penalties are owed to regulatory agencies.

Ensuring a Smooth Transition for Participants

At PSI, we provide seminars and individual consultations for participants, ensuring they understand the process and next steps. While most retirement plans aren’t designed with termination in mind, our specialized expertise ensures a smooth and thorough conclusion, helping both employers and employees transition effectively.

Let PSI Guide You Through a Clean Finish

With PSI, plan termination is just as expertly managed as plan design. Reach out to learn how we can apply our expertise to bring your retirement plan to a successful conclusion.