Residual assets

Each participant is entitled to a share of the excess plan assets where the plan does not provide for return of excess assets to employer upon plan termination.

Addresses the distribution of residual assets to an employer.

Addresses the distribution of residual assets to an employer.

Termination is not subject to the spin-off/termination requirements of the implementation guidelines involving asset reversions since no assets will revert to the plan sponsor.

A plan document’s provision allowing for reversion of residual plan assets to the plan sponsor was invalid and therefore residual assets were required to be distributed to participants.

Any amendment to a terminating or terminated plan to allow a return of excess plan assets to the employer conflicts with direct statutory provisions and legislative intent.

Because plan does not provide for reversion of excess assets to sponsor, residual assets must be distributed to plan participants and their beneficiaries, pro rata, in relation to their accrued benefits.

Addresses the distribution of residual assets to an employer.

The purchase of participating group annuity contracts to satisfy all accrued benefits with a termination/reestablishment transaction of a plan is permissible.

Whether the language in a plan document providing for the reversion of residual assets to the employer complies with the law.