Jump to content
Sign in to follow this  
austin3515

-11(g) to elect fail-safe?

Recommended Posts

We're using a prototype document and we are limited to selecting the options available for a -11(g) amendment. For example, we would have to reduce the hours requirement or eliminate the last day rule.

Can we do an -11(g) amendment to select the fail-safe provisions? The logic is that we would be able to run the average benefits test; if that fails, then we do a -11(g) amendment to elect fail-safe, which allows us to bring in one participant at a time until coverage is passed.

Share this post


Link to post
Share on other sites

Interesting suggestion. I think it may depend on the interpretation of -11(g)(3)(ii). As I read it, the -11g amendment to elect fail-safe provision could eliminate a benefit for a participant that would have otherwise benefited if you used the provisions in effect immediately prior to the amendment. At the same time, nobody had met the eligibility conditions for the allocation anyway so there wasn't any accrual to eliminate.

I don't think it's clear either way, so I'd be inclined to push the limits.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

×
×
  • Create New...