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One more thing ... when you send the document, if it is your preapproved document, be sure to remind them that they cannot rely upon you anymore to keep the plan up to date. That will let them know that they must amend onto another document (and if the "new" TPA doesn't have one, it will highlight that. Second, when they get nailed by the IRS for having their plan out of compliance, and they come crying back to you, you will have proof that you advised them that you don't do that anymore for them. FWIW. Ilene

Maybe take a pass on this client and save the headaches?

I assume you've previously provided the document to the client so you could just direct him there. If the client doesn't have it you can charge reasonable fees for providing another copy. That said what comes around goes around and it's a pretty small industry. In days when it's pretty easy to just e-mail a copy of the Plan Document I typically just do so unless there are outstanding fees unpaid fees I'm trying to collect from the old client.

@austin3515The settings have been identified and changed. Although it was fun to be a rocketeer for a minute there...

@austin3515We had bid $27.5 million but the other guy got it at $28 million. Dang. Maybe next launch. As for the rocket ships, your humble servant is still trying to determine what and why. Seems to be a lagniappe with a security upgrade from the software vendor, which I applied this morning. It's always something...

I agree with CB that you should contact the ABCD. Unfortunately, it doesn't sound like he will be cooperative with them either. That said, the plan sponsor is the primary source of participant history. I recognize it is much easier to get this from the prior actuary, but the sponsor should have records of the information they provided. You can get the plan document from the attorney or the sponsor. There is really very little the actuary has that you can't obtain from other sources. Has the prior actuary provided the signed SB for the last valuation they prepared? That would be the one item I would either confirm they will provide, or you will need to inform the sponsor that you will need to redo the most recent valuation. With ARPA's passage - you might just want to do that anyway.

Maybe contact the ABCD. This is definitely a violation of all sorts of codes of conduct.

Life is too short. Be Kind and send the Doc. It sucks to lose one believe me I know, but I don't see how withholding the document improves your situation one bit. You lost the case either way. And trust me your client will never forget you were a challenge to deal with in the transition and they might even tell their friends. Like others have said I bend over backwards for new TPA's when I lose a case because clients will never forget one way or the other if you were gracious and cooperative or a curmudgeon. And hey I can tell you clients have fired us and then realized what they were missing and came back (which they would not have if I chose the curmudgeon route...).

The cash value of the policies up to premiums paid is part of the C corporation's assets and will have same tax consequences in liquidation as would any other asset. If they tear up the collateral assignment, presumably that is compensation or a distribution of liquidation proceeds to the owner. They need to talk to the CPA or tax lawyer handling the liquidation.

Send the document to the employer. Don't get involved in anything else, unless compensated. It sounds to me like they are going to be in trouble in a few years and you don't want someone trying to say that you are liable. In the future, you may want to include in your 408b-2 that there is an exit fee and that a standard set of documentations will be furnished for that fee (5500s for two years, plan documents, SPD, trust, etc.). We include everything on our list that a new provider should need to use to prepare the 5500 for the time period in the plan that the plan was under our control and if they ask for more, tell them there is a fee. We include language on the exit package that we no longer sponsor the document once it leaves us and make sure we put in writing the last 5500 we are responsible for preparing.

Required by whom? I can't think of a legal obligation to provide anything to a non-client. If anything there'd be a strong presumption against providing anything to a non-client. If you are a member of a professional association, there may be an industry ethic to abide by. Are you a member of ASPPA? Check out https://www.asppa.org/member/code-conduct

The better question is: how many business M & A transactions have you seen where the attorney's DID consider the impact of the retirement plan? I might not even need both hands to count...

Sounds like you are offering to do even more work for no compensation. I like the other options better - either give the doc to the new TPA or the client. Charge the client for your time if they want to "review" it with you.

One way or another, whoever ultimately does the admin will need a copy of the current document to administer the plan, even if they will be amending it on to their document as they will need to make sure any changes don't violate 411 cutback provisions. whether they get that document from you or the client I'll leave to you. But you are under no obligation to explain the document to the new group. The new group is not your client, you don't have a service agreement with them. You could certainly send anything directly to the client and let them decide what to send to new group.

If the receiver is a Qualified Termination Administrator, then they have fiduciary protection against any breaches that occurred prior to their becoming QTA under the final abandoned plan regulations. The former shareholders, to the extent that they failed to execute their fiduciary duties, would still be liable.

I can't address how it might impact the qualified status of a volume submitter plan document, but you would be legally permitted to exclude any HCEs that you want. You will need to contact the document provider and ask if this type of adjustment impacts the determination letter.

Blinky, I agree with you. My second paragraph makes no sense; consider it withdrawn. TGIF.