A soft freeze occurs when the plan is only amended to no longer allow new participants into the plan.  However, current participants will remain in the plan and continue to accrue additional benefits, as long as the accrual requirements under the plan document are met.

Under a hard freeze, in addition to no longer allowing new participants into the plan, the plan is amended to no longer allow current participants to accrue additional benefits after the effective date of the hard freeze.

For more information on freezing your plan, please contact your Nyhart consultant.

This article was last updated on February 14, 2012