An Adopting Employer of a Multiple Employer Plan (or Pooled Employer Plan) may (for any reason) withdraw from participation under the Plan. When an Adopting Employer terminates services with the Plan Sponsor, is no longer affiliated with the Plan Sponsor, or discontinues making required contributions to the Plan, the Adopting Employer is considered to have discontinued participation in the Plan.
If the Adopting Employer wishes to discontinue participation in the Multiple Employer Plan (or Pooled Employer Plan), they should complete the Exit Policy Form and submit it to Slavic401k. Once received, Slavic401k will take the necessary actions based on the reason for discontinuance as indicated on the Exit Policy Form.
What are some of the reasons an Adopting Employer may discontinue its participation in the Plan?
- Adopting Employer has established another qualified retirement plan (successor plan) with a new recordkeeping firm and wishes to execute a plan to plan transfer.
- Adopting Employer wishes to discontinue contributing to the Plan, permanently or temporarily, but the existing assets in the plan will remain in the Multiple Employer Plan (or Pooled Employer Plan).
- Adopting Employer was acquired or went out of business.
- Adopting Employer wishes to terminate the plan.
IMPORTANT: Discontinuance from participation in the Multiple Employer Plan (or Pooled Employer Plan) does not represent a plan termination. The Adopting Employer who wishes to terminate their portion of the Multiple Employer Plan (or Pooled Employer Plan) must first establish a “spin off” single employer retirement plan, which may then be terminated. See Reg. 1.413-2(a)(3)(iii) and the plan document.
If the Plan is discontinued for any reason, participants will continue to have online access to view their account balances and make investment election changes.
Participants in a discontinued plan will become 100% vested after a period following the plan discontinuance, as specified by the plan terms.
In order for a plan participant to qualify for a distribution from the Plan, one of the following events must occur: separation from service from all Adopting Employers of the Multiple Employer Plan (or Pooled Employer Plan), attainment of age 59 ½, plan termination, disability of the participant under the plan and Social Security rules, or death of the participant.