Orphan Plans Clause Samples
The Orphan Plans clause addresses the management and disposition of benefit or retirement plans that are left without a responsible sponsor, typically due to corporate restructuring, mergers, or dissolutions. In practice, this clause outlines procedures for identifying such plans, appointing new fiduciaries or administrators, and ensuring that participant benefits are protected and properly distributed. Its core function is to prevent the neglect or mismanagement of employee benefit plans when organizational changes leave them without oversight, thereby safeguarding the interests of plan participants and beneficiaries.
Orphan Plans. The Service retains the discretion to determine under VCP and Audit CAP whether full correction will be required in a terminating Orphan Plan.