MPPP has last day of plan year requirement for receiving an allocation. PYE 9/30/99. Employer wants to amend MPPP to reduce 8% contribution to 0% contribution for PYE 9/30/99. However, co-trustee (there are 4 other individual co-trustees) of plan has not been removed as he has not received 30-day notice as per plan terms. Even assuming co-trustee is removed before 9/30/99, amendment to reduce contribution from 8% to 0% will not be effective for PYE 9/30/99 as ERISA 204(h) notice will not be given not less than 15 days prior to the effective date of the amendment. Thus, employer stuck with making 8% contribution for PYE 9/30/99. Anyone see it differently?

1. Is unanimous consent of all trustees required?
2. Assuming that unanimous consent is not required, or that the (I am assuming from the way the question is phrased) desenting trustee can be either reoved are converted, you will have until 9/14/99 to post your 204(h) notice and freeze the plan for PYE 9/30/99.
Otherwise, your amendment will have to be prospective and only be effective in the 9/30/00 plan year.

Are 204(h) notices being posted? I didn't think this was permissible. Section 204(h) requires the plan administrator to provide a written notice to each participant and other person entitled to the notice. Section 1.411(d)-6 specifies that the method of providing a 204(h) notice must be "reasonably calculated to ensure actual receipt," and that first-class mail or hand delivery are acceptable methods. (Compare this to the language in the Revenue Procedures that deal with notices to interested parties.)

As I'm sure you know, the plan amendment must be signed before the 204(h) notice is given (as well as any required board approval).