I have a plan that is going to replace their DB plan with a DC plan. They are going to freeze benefit accruals in the DB plan. Is it possible to freeze the accruals at different dates for different employees. I have combed through the regs. and found nothing that says they can't do it (other than a possible 401(a)(26) problem).

Also, I assume they can design the freeze where new employees will participate in the DC plan only and the current DB plan participants can opt-out of the DB plan to participate in the DC plan. Any design issues here? Does anyone have Code sites that can direct me to any opt-out rules?

Thanks!

I think you have a 401(a)(4) issue if you do a "staggered" freeze.

I agree with pax. It would no longer be a safe harbor formula because differing participants will have different rates of accrual based on when their freeze date is.

Regarding your DC and DB plans question, you may have a 410(b) problem and, depending on the size of the plan, a 401(a)(26) problem in the DB plan.