Page 10 - 2Q 2018 June Reporter

When M&A Occurs, Don’t Forget a
Retirement Plan Review continued

With M&A Comes an Opportunity
qualified plan while employees of the purchased
to Improve Your Plan
divisions or bank move to the acquirer.
n Participants who become employees of the
A merger or acquisition can also present an
acquirer are generally treated as having severed
opportunity to update and refine your retirement plan.
service with the seller and can take a distribution
Your retirement plan provider should be available to
from the seller’s retirement plan.
help evaluate plans in terms of investment options,
n However, the entities may agree to transfer the pricing, participant engagement, and more.
retirement assets of the relocated participants
from the seller’s plan to the acquiring employer’s
plan. This would not be considered a distributable
event as the acquiring employer would be seen as
maintaining the seller’s plan.
To learn more,

Evaluating and Comparing contact Mark
Retirement Plans is Key
Hogan, at
Once you understand the nature of the transaction
and the potential issues involved, the next step is to
review both organizations’ retirement plans. Creating mark.hogan@
a detailed comparison will enable you to identify pentegra.com
differences that may need to be addressed as you
or
move forward.

Key Considerations Include: call 513.259.9222.

n Does the surviving plan(s) meet your bank’s
benefit objectives and comply with all regulatory
requirements? Sheshunoff & Co.,

n Are plan investment options and performance
http://www.smslp.com/
consistent with your investment policy statement?
n Is plan pricing in line with industry standards and investment-banking/
your bank’s expectations?
nationwide-ma-activity/#.
n Do you have the information needed to identify
liabilities and estimate future contribution and WvXra_mnEdX
expense requirements?
n Does the acquired plan contain any protected
benefits, such as, early retirement provisions and
distribution options?

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