An embodiment method for session handling for a connection between an UE and a network includes establishing, at a first distributed EPC, user and IP sessions over the connection through the first distributed EPC. The first distributed EPC includes a first PGW at which the IP session is anchored. The method also includes holding original IP resources and releasing original connection resources for the sessions at the first distributed EPC when the UE moves beyond the first distributed EPC to a second distributed EPC. The method then establishes a tunnel between the first PGW and a second PGW for the second distributed EPC. The tunnel utilizes the original IP resources and new connection resources at the second distributed EPC. The method then routes data from the tunnel, through the first PGW, and to the network.