After 18 years, the district court in the District of Illinois ruled that a partial termination of a 401(k) plan did not occur. Household International Inc. sponsored a 401(k) plan. In 1996, Household decided to sell several of its subsidiaries, which resulted in a termination of a number of employees covered under the 401(k) plan. Employees whose employment was terminated forfeited the unvested potion of the employer matching contribution in the 401(k) plan if they had not worked long enough to be fully vested. A former employee filed a lawsuit claiming that a partial termination had occurred and that affected participants should be fully vested. Matz vs. Household International is a well-known case that provides some guidance in determining if a partial termination had occurred. This case has gone through district courts, courts of appeals, and even the U.S. Supreme Court. Finally after this long legal history, the District Court for Northern District of Illinois disagreed with the former participants that a partial termination had occurred. The issue that was crucial in this determination was whether several sales of subsidiaries should be viewed as a single corporate act or whether they should be viewed separately. This becomes important in determining the percentage of affected employees for the partial termination rules. The district court held that the decisions made to sell the subsidiaries were made a different times and based on different market conditions; they were not viewed as part of a single corporate event. By making this determination, the district court found the number of affected employees was approximately 5 percent. This fell below the rule generally followed by courts that a percentage below 10 percent is an absolute rule that a partial termination had not occurred. Under this rule, the range of between 10 percent and 20 percent creates a rebuttable presumption that a partial termination had not occurred, and a percentage above 20 percent creates a presumption that a partial termination had occurred. (Matz v. Household Int’l Tax Reduction Inv. Plan, N.D. Ill., 2014)