Pension Plan Administration

Pension Plan Termination And Wind-Up

When an organization is faced with downsizing, reorganization, closure, corporate bankruptcy or an alternative to bankruptcy, it may not be able to continue to maintain existing retirement and pension plans.

The stressful circumstances of business insolvency and corporate bankruptcy can often become more complex when termination of a pension plan becomes necessary. Management, already at odds with employees, is now saddled with one more area of management where employees can become dissatisfied and distrustful. Complicating matters further, the Department of Labor can become involved in the process of the plan termination, which could delay distributions to participants and involve management in time-consuming reviews and audits of how the plan was administered.

As an independent fiduciary, Equitable Transitions, Inc. is experienced in coordinating with the Department of Labor in the distribution of pension plan assets to rightful participants. Because Equitable Transitions, Inc. has no prior ties, commitments, understandings or relationships with either the employees or the management of the plan sponsor, its independence and judgment are unimpaired. This independence and neutrality makes Equitable Transitions, Inc. the ideal team to wind up the existing pension plan.

With more than 20 years of fiduciary experience Equitable Transitions, Inc. can:

  • Bridge the gap between plan participants and pension plan administration. Often, when working with experienced and competent plan administrators, the Department of Labor will not need to audit the fund. The result: Faster distributions and less money paid to lawyers, CPAs, and consultants.
  • Communicate clearly and in a timely manner. Upon its appointment as the plan administrator, Equitable Transitions, Inc. immediately communicates, in writing, with plan participants, directing them about their options and seeking the plan participants’ instructions with respect to their vested plan assets. This proactive approach provides immediate satisfaction to the plan participants, who are already skeptical as to the use of the pension assets. Additionally, the plan sponsor (the distressed company) is relieved of administrative, statutory, and regulatory demands of winding up the plan.
  • Communicate directly with, respond to, and resolve hundreds if not thousands of plan participants who are calling an already overwhelmed organization. Participants communicate directly with our offices, which are tooled to respond to and resolve participant requests. The result: Less anxiety for the participants, more control of their money and elimination of skepticism toward the plan’s management.

Charge fixed fees, so there are no surprises and no hidden costs. Fees are usually based on a percentage or hourly rate, with a cap. The result: more money returned to plan participants.

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