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Advisory from the AICPA on 2021 Partial Plan Terminations
The AICPA Employee Benefit Plan Audit Quality Center (EBPAQC) has prepared an advisory to provide you, the plan sponsor, administrator or trustee, with an understanding of partial plan terminations under the Employee Retirement Income Security Act of 1974 (ERISA) and your related responsibilities. As a plan fiduciary, you are subject to certain responsibilities, such as following the plan document and prudently carrying out your responsibilities. This advisory describes a partial plan termination; discusses the plan administrators' fiduciary responsibilities related to partial plan terminations, the consequences of a partial plan termination, and rebutting the presumption of a partial plan termination; and also provides suggestions for best practices for evaluating partial plan terminations and references to additional resources.
We hope you find this resource informative. Please reach out to your Dermody, Burke & Brown advisor with any questions.
The information reflected in this article was current at the time of publication. This information will not be modified or updated for any subsequent tax law changes, if any.