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We paid off the ones that wanted to be paid off,
and bought annuities for everyone else, and had them
sent to their homes.
However, the participants' accumulated vested account balances
were valued at $413,746, while the group annuity contract
purchased and distributed by Gant was valued at only $56,031.
Even if the plan participants had received some notice of
termination, the substantial discrepancy in value between
benefits and distribution is inconsistent with a plan
termination.
Finally, although Products' board of directors resolution
stated an intent to terminate the Money Purchase Plan by the end
of the plan year ended June 30, 1988, the subsequent conversion
of the Money Purchase Plan into the Profit Sharing Plan on
September 1, 1988, is inconsistent with the board's stated
intent.
We hold that the Money Purchase Plan was not terminated in
the plan year ended June 30, 1988, because the evidence fails to
show that Products intended to or did terminate it. We further
hold that the Profit Sharing Plan was not terminated and was an
ongoing plan until June 30, 1991.
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