3 pages. Excerpt: Affected participants become fully vested as a result of a partial termination. Therefore, it is better to recognize a partial termination event when it occurs, rather than to realize that one has occurred in the past and that your plan has not paid out affected participants on a fully vested basis. Although there are technically two types of partial terminations, horizontal partial and vertical partial, this article will focus only on the vertical partial termination – that is, a situation in which an employer-initiated action results in a significant decrease in the employees covered under a retirement plan.

MORE >>