Leaderboard

using just today's CPI factor (256.092), I have the following catch up catch up unrounded Deferral Limit def limit unrounded Comp Limit Comp Limit (unrounded) 2019 $ 6,000 6405.50 $19,000 $19,217 $280,000 $283,740 2020 $ 6,500 6504.00 $19,500 $19,512 $285,000 $288,120 (far column hce limit unrounded 130,192) DC $ Limit DC$ Limit (Unrounded) DB $ Limit DB $ Limit (unrounded) Key Employee Key EE (unrounded) HCE Limit HCE Limit (unrounded) $56,000 $56,748 $225,000 $226,992 $180,000 $184,431 125000 $ 128,208 $57,000 $57,624 $230,000 $230,496 $185,000 $187,278 130000 $ 130,192

Thank you for your responses. Here's a bit more clarification: The church (steeple) is currently participating in "Denomination A's 403(b)(9) plan" [non-electing]. The steeple has requested to terminate Denomination A's services and start a new 403(b)(9) with Denomination B [non-electing]. My assumption is that upon terminating A's 403(b)(9) plan, the steeple is prohibited from contributing to B's 403(b)(9) plan for 12 months post distribution. Is that right?

This is where a well drafted amendment is needed. If the people doing the amendment were good they wrote it with language that said something to the effect: Anyone who works 1 hours on or after this date....(the amendment goes on to talk about that change). If it doesn't have any such limiting language my default answer is it applies to all participants. It sounds like this person is a participant so it applies to him. I would go back to the attorney that drafted the amendment and see if they can justify any other reading if the client doesn't like that answer.

From the EOB/DC-1: The short computation period issue arises not only when the vesting computation period is amended but if a new plan has an initial short plan year and the vesting computation period is defined to be the plan year. When the effective date of a new plan is a date other than the first day of the normal plan year cycle, the plan will start with an initial plan year of less than 12 months. However, a vesting computation period may not be a period of less than 12 months. If the plan recognizes service before the plan's effective date for vesting purposes, then the initial short plan year will not have any effect, because the vesting computation period which includes the effective date of the plan will be the 12-month period ending on the last day of the first plan year. If the plan disregards service before the plan's effective date, the initial short plan year may not be used as a vesting computation period. The initial short plan year will be treated in the same way as an amendment of the vesting computation period. The first 12- month vesting computation period will start on the effective date of the plan, and overlap with the second plan year.

Exactly. This is a missing participant. PBGC covered, I assume, because you did a post-dsitrib cert, so the benefit should have been turned over to the PBGC. It could not be forfeited just because you couldn't find the person, except maybe if this person went past NRD and benefits were due before plan termination and you couldn't find (if plan terms allow) - but even then I think DOL is very opinionated that you can't really do that.

Not a DB plan guy I admit. But you seem to not answer the question that I think is universal to all plans. At the time of the plan termination did the plan think she was due a benefit? If so, what was done with her benefit? If not, do you have any idea why not? It would seem like that ought to be the starting place.

What does the plan say? Our VS document has provisions that address what happens to affirmative and automatic elections when a participant terminates and when one rehires. It can be handled in different ways, but the document should say what happens. If not, the ERISA Plan Administrator needs to interpret the plan document.

Yes, the plan can offer a lump sum window during plan termination. IRS Notice 2019-18 essentially allows it again.