Orphan Plan Clause Samples
An Orphan Plan clause defines the procedures and rights related to a retirement or benefit plan that is left without a sponsoring employer, typically due to company dissolution or bankruptcy. This clause outlines how the plan's assets will be managed, who will assume fiduciary responsibility, and the process for distributing benefits to participants in the absence of the original sponsor. Its core function is to ensure that plan participants are protected and that their benefits are properly administered even if the employer can no longer fulfill its obligations, thereby safeguarding employee interests in unforeseen circumstances.
Orphan Plan. With respect to VCP and Audit CAP, the term “Orphan Plan” means any Qualified Plan or other plan with respect to which an “Eligible Party” (defined in section 5.03(2)) has determined that the Plan Sponsor (a) no longer exists, (b) cannot be located, or (c) is unable to maintain the plan. However, the term “Orphan Plan” does not include any plan which is subject to Title I of the Employee Retirement Income Security Act of 1974 (“ERISA”) terminated pursuant to section 2578.1 of the Department of Labor regulations governing the termination of abandoned individual account plans.
Orphan Plan. Any Account that is not part of a Plan as of January 1, 2009, shall continue to be held by the Custodian for the benefit of the Participant in accordance with the provisions of this Agreement to the maximum extent possible, substituting the Participant for the Employer, subject to the provisions of Revenue Procedure 2007-71.