Book - Hardbound

Plan Termination Answer Book, Fifth Edition

Plan Termination Answer Book, Fifth Edition

Plan Termination Answer Book, Fifth Edition

By Frank J. Bitzer
Publish Date
Product Line
Wolters Kluwer Legal & Regulatory U.S.
Available formats


Plan Termination Answer Book helps you systematically address each issue that needs to be considered in the plan termination process and comply with the latest regulations, so you can avoid costly mistakes. From determining what options are available when terminating a defined benefit plan with insufficient assets to understanding the tax implications of outstanding loans on terminations, there's simply no other resource like it for busy pension plan professionals.

Among the many topics covered in the Plan Termination Answer Book are the following:

  • Various requirements of the different governing agencies
  • Qualification areas that must be addressed in a plan termination
  • Options for terminating a defined benefit plan with insufficient assets
  • Circumstances under which a money purchase plan may be terminated
  • Special procedures and rules for terminating a multi-employer plan
  • Considerations for partial terminations
  • Steps to follow for "distress terminations" and their implications
  • Matters concerning plan mergers
  • And more!

Starting with an overview of the legal, administrative, and tax requirements for all types of plans, practitioners will find expert advice on:

  • When to terminate Alternatives to termination
  • How to comply with regulations
  • Vesting of participants' benefits
  • Implications of multiemployer plans
  • And more!

Plan Termination Answer Book has been updated to include:

  • Expanded coverage of retiree health care accounts as a result of July 2012 legislation
  • Details of the rollover rules for designated Roth accounts
  • Discussion of fiduciary issues in selecting annuity providers
  • Updated 120% of midterm rates charts
  • Updated PBGC rates tables
  • Updated 30-year Treasury Securities Rates tables
  • Updated Minimum Present Value Segment Rates

SKU: 10045181-7777
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  • 1. General Considerations in Terminating a Plan
    • Reasons for Considering a Plan Termination
    • Actions to Effect a Plan Termination
    • Permanency Requirement
    • 100 Percent Vesting Requirement
    • ERISA Section 204(h) Notice
    • Whether to Request an IRS Determination Letter
    • Plan Document Issues
    • Alternatives to Plan Termination
  • 2. Non-PBGC Covered Plans
    • Non-PBGC Covered Defined Benefit Plans
    • Fully Funded Plans
    • Underfunded Plans
    • Money Purchase and Target Benefit Plans
    • Profit Sharing Plans
    • 401(k) Plans
    • ESOPs
  • 3. Defined Benefit Plans Covered by the PBGC’s Plan Termination Insurance Program
    • PBGC Plan Termination Insurance Program
    • Failure to Pay, or Erroneous Payment of, Termination Insurance Premiums
    • Single-Employer Plans
    • Other PBGC Issues
    • Model Participant Notice for PBGC-covered Plan
  • 4. Termination of Multiemployer Plans
    • Withdrawal by Individual Contributing Employers
    • Termination of Multiemployer Plan by Mass Withdrawal
    • Termination of Multiemployer Plan by Amendment
    • Termination of a Multiemployer Plan by the PBGC
  • 5. Determination of Benefit Liabilities in a Defined Benefit Plan
    • Benefit Liabilities Defined
    • Protection of Accrued Benefits
    • Determining Accrued Benefits in Defined Benefit Plans
    • Determining Accrued Benefits in Hybrid Defined Benefit Plans
    • Benefit Limitations
  • 6. IRS Termination Process
    • Scope of the IRS Determination Letter
    • Preliminary Steps Before Submission to the IRS
    • IRS Submission Information
    • Problem Solving Options
    • Plan Disqualification
    • Final Steps
  • 7. PBGC Termination Process for Single-Employer Plans
    • Standard Termination Procedures
    • Distress Termination Procedures
    • Involuntary Terminations
    • Restoration of Previously Terminated Plans
    • PBGC Reconsideration Process and Appeals
    • PBGC Audit Process
  • 8. Surplus Assets in a Defined Benefit Plan
    • Employer Reversions
    • Tax Consequences of Reversions
    • Reduction of the Reversion Excise Tax
    • Elimination of the Reversion Excise Tax
    • Other Techniques for Reducing or Eliminating the Reversion Excise Tax
  • 9. Distributions from Terminated Plans
    • General Distribution Procedures
    • Cash-Out Distributions
    • Distributions from Plans Not Subject to QJSA
    • Distributions from Plans Subject to QJSA Rules
    • Distribution of Annuities
    • Post-Distribution Requirements
  • 10. Special Distribution Issues
    • Distribution of Participant Loans from Terminated Plans
    • Distribution of Life Insurance from Terminated Plans
    • Annuity Selection and Terminal Funding Contracts
    • Missing Participants
    • SSA Letter-Forwarding Program
    • Private Locator Services
    • Internet Resources
    • Illiquid Assets
  • 11. Special Plan Termination Issues
    • Orphan Plans
    • Distribution of Found Assets
    • Former Participants and Determination of Vested Percentage
    • Payment of Plan Termination Expenses
    • Governmental Reporting
  • 12. Frozen Plans
    • Definition
    • The Process of Freezing a Plan
    • Vesting Issues
    • Applicability of Qualification Requirements
    • Minimum Participation Requirements
    • Minimum Coverage Rules
    • Nondiscrimination Requirements
    • Restrictions on Distributions to Highly Compensated Employees
    • Use of Collateral Agreements
    • PPA Restrictions on Distributions
    • Survivor Annuity Requirements
    • Minimum Funding Requirements
    • Maintenance of an Updated Plan Document
    • Reporting Requirements
    • Plans Frozen Involuntarily
    • PPA Changes for Involuntary Freezes
    • Reactivating a Frozen Plan
  • 13. Partial Plan Termination
    • Partial Terminations Triggered by Significant Reductions in Participation
    • Partial Terminations Triggered by Events Other Than Significant Reductions in Participation
    • Miscellaneous Issues
  • 14. Spin-Offs
    • 120 Percent of Federal Midterm Rate
    • PBGC Rates for Valuing Lump Sums
    • 30-Year Treasury Securities Rates
    • Mortality Tables
    • Determination of HCEs
    • Determination of Key Employees
    • Minimum Present Value Segment Rates


Frank J. Bitzer, Esq., CEBS, is ERISA Legal Counsel and Assistant Vice President, Fifth Third Bancorp. Formerly, Mr. Bitzer was with the Employee Benefits Security Administration (EBSA) of the U.S. Department of Labor (DOL). He received a Special Award of Merit for obtaining the fastest criminal indictment in DOL history. He was recently named a Cincy Leading Lawyer by Cincy Magazine. He has published numerous articles on ERISA in a number of trade publications, including Aspen Publishers' Journal of Pension Benefits, Spencer's Research Reports, and other publications and is the co-author with Nicholas W. Ferrigno, Jr. of ERISA Facts, a reference book and software product that answers over 800 ERISA compliance questions; Benefits Facts, a reference book that answers over 600 employee benefits questions; and The Insider's Guide to DOL Plan Audits, a reference book that provides an insider's perspective on the U.S. Department of Labor's enforcement of the Employee Retirement Income Security Act of 1974 (ERISA), as amended. Mr. Bitzer also served as editor and co-author of the ERISA Question and Answer column on www.BenefitsLink.Com. Mr. Bitzer is a frequent lecturer on the employee benefits circuit, having offered his insight and comments on ERISA fiduciary issues to various trade industry groups, bar associations, and IRS employee sessions across the U.S.