Okla. Admin. Code § 590:35-19-6

Current through Vol. 42, No. 4, November 1, 2024

Section 590:35-19-6 - Discontinuance of Contributions/Termination

(a) It is the present intention of the Employer to maintain this Plan. Nevertheless, the Employer reserves the right, at any time, to discontinue or terminate the Plan, to terminate the Employer's liability to make further contributions to this Plan, and/or to suspend contributions for a fixed or indeterminate period of time.

(b) If the Plan is curtailed, terminated, or the contributions suspended permanently, the Board of Trustees shall nonetheless be responsible for the supervision and the payment of the benefits resulting from amounts contributed prior to the amendment, modification or termination in accordance with this Chapter. Upon complete discontinuance of the Employer's Contributions or full or partial termination of the Trust, all affected Participant's rights to benefits shall remain fully vested.

(c) The Plan and Trust may be terminated at any time by the Employer, by giving notice in writing to the Board of Trustees, which notice shall recite the date upon which the termination shall be effective. After receipt of such notice, the Board of Trustees shall continue to hold, invest and administer the Plan and Trust until the assets are liquidated and distributed to the Participants and Beneficiaries. The distribution of assets shall occur as soon as administratively practicable after the termination of the Plan. The Trust shall terminate only when no assets of the Trust remain in the possession of the Board of Trustees.

(d) The Trust is hereby designated as constituting a part of the Plan intended to continue to qualify and to be tax exempt under Code Sections 401(a) and 501(a). Until advised otherwise, the Board of Trustees may conclusively assume that this Trust is qualified under Code Section 501(a) and that this Trust is exempt to that extent from federal income taxes. Anything herein to the contrary notwithstanding, if a determination letter is issued by the Internal Revenue Service to the effect that the Plan and Trust do not meet the requirements of Code Sections 401 (a) and 501(a), as initially submitted, the Employer shall be entitled, at its option, to withdraw all contributions made, in which event the Plan and the Trust shall then terminate and all rights of the Participants shall terminate effective as of the date of the adverse determination letter.

Okla. Admin. Code § 590:35-19-6

Added at 15 Ok Reg 793, eff 11-12-97 (emergency); Added at 15 Ok Reg 3282, eff 7-13-98