What is the different between “plan closed to new participant” and “plan being frozen”?
Ice can melt with warmth.
something that is frozen can be thawed
What?
Plan closed to new participants -> benefits will continue to accrue for actively employeed participants in the plan
Frozen plan -> no future accrual of benefits. Plan will just be managed to pay out future liabilities for benefits accrued up to the point of the plan having been frozen.
Closing the plan to new participants is a less aggressive way for a company to phase out its pension plan. Freezing it is the more drastic move.