A multiple employer welfare arrangement (MEWA) has agreed to shut down its operations and distribute the plan assets to the plan participants.
The Internal Revenue Service (IRS) negotiated the agreement with the Millennium Multiple Employer Welfare Benefit Plan, Richardson, Texas, IRS officials say.
The MEWA filed for bankruptcy court protection at the U.S. Bankruptcy Court for the Western District of Oklahoma in June 2010.
The agreement with the IRS calls for the Millennium Plan to terminate its operations and liquidate and distribute $80 million in assets to the plan’s individual participants.
The agreement should help resolve the hundreds of income tax and penalty examinations of employers and employees who had participated in the Millennium Plan, officials say.