Partial 401k/PSP Plan Termination

A partial termination may be deemed to occur when an employer reduces its workforce (and plan participation) by 20%.

This may trigger a Partial Plan Termination. 

If your plan has a vesting schedule and associated employer contributions those affected employees may become 100% vested.  

This affects your forfeture account and anticipated payment of expenses or offsettign funding of future contributions.

Plannig ahead for this contingency and having a strategy if it occors can have a material difference in its success.  

Here is a good article that discusses the basics of it.