I know there has been considerable debate on the best way to eliminate the money purchase plan now that egtrra allows for the increased deduction limit for Profit Sharing plans. Does anyone see a problem with amending a Money Purchase plan formula down to 0% effective 1-1-02. That way it will at least buy some time to figure out whether to Term, merge or freeze. What needs to be done other than an amendment?

I don't think that amending to 0% is the same as freezing. For example, you could still have new entrants. If the aggregation group is top-heavy, then you might have new entrants entitled to a T-H minimum, even though no other participant gets a benefit.

Seems to me that freezing is OK. Note that a frozen plan can later be unfrozen.

What are the requirements and/or process for freezing a plan. If you stop contributions, how does that fit with the requirement that contributions be "recurring and substantial" for the plan to be qualified?

Any qualified plan can be frozen. I think it only requires a duly adopted plan amendment. Should specify that benefits, credited service, benefit accruals, and participation are all frozen as of X date.

The "recurring and substantial" requirement is for profit sharing plans.

pax, does your message imply no increase in vesting while the plan is frozen?

No. Vesting service cannot be frozen. The term frozen is used (usually) to refer to benefit accruals (DB plans) or employer contributions (DC plans). It can (but does not necessarily) mean that the plan is also frozen with respect to new entrants.

In the case of a DB plan, it is easy to imagine a not-well-funded plan that is frozen, but employer contributions continue to be required.

None of this has any effect on the vesting provisions of the plan.