Have you ever said yes to something only to realize that with changing circumstances, you really need to back out? Sometimes this happens with employer-sponsored plans too. Business conditions are always changing, and sometimes the best of intentions are rendered toxic to the health of a company’s finances. There are mechanisms to terminate a plan. There are also alternatives to simply deconstruct a plan. But if the plan is too far gone, the regulators might not permit these alternatives and might simply shut the plan down by operation of law. Before you say yes to a new plan, be sure to understand how to unwind it if conditions change.
• Identify commonly cited reasons for a plan termination. ...