Partial Plan Terminations – An Update
By EsqSocial Corporation 03/02/21
In our April 2020 post, we detailed how employee layoffs can cause a qualified retirement plan to undergo a “partial termination,” resulting in required 100% vesting of the affected employees’ benefits. As 2020 drew to a close, with the COVID-19 pandemic continuing to affect many businesses, Congress enacted a special rule on partial terminations as part of the Consolidated Appropriations Act. The special rule is protective of employers, partly because it makes it more difficult to trigger a...
By: Verrill