What happens if a hospital service district loses its 501©(3) status due to taxing authority? Do they simply stop making contributions to their 403(B) plan and replace it with another type of plan?

Like many questions involving privatization, this one does not have a clear answer. Clearly, the hospital cannot go on making contributions to the 403(B) plan. However, because termination of a 403(B) plan is not a distributable event, the hospital may nevertheless have an obligation to go on holding the old money, unless it can structure the 403(B) contracts so that they are owned individually by the employees.