Can someone confirm my understanding that Schedule C reporting is required for amounts (in excess of the reporting threshold) paid to reimburse plan sponsors for the chargeable cost of their dedicated employees?

That is how I read the form and instructions.

We have a hospital (tax exempt and governmental) with a 403b plan and this hospital owns a tax exempt that has their own ERISA 403b plan. The ERISA plan is a safe harbor plan. The ERISA plan fails coverage on a stand alone basis, but if we aggregate it with the non ERISA plan it passes. Once we aggregate, what happens with testing issues where a safe harbor plan cannot aggregate with a non safe harbor plan? Does this rule even matter since neither plan is subject to ADP or ACP testing - the governmental 403b is non ERISA so no testing, and the ERISA plan is safe harbor so no testing.

Any thoughts?

I am asking if anyone is aware of a "bible" or other quality published resource dealing with benefit issues in spin-off transactions. I often use the Employee Benefits in Mergers and Acquisitions (Ferenczy) as a resource for transactions but from what I can tell of the edition at my disposal (the 2008-2009 one), there isn't a lot of detail about spin-offs. I see there is at least one new edition of that resource (2010-2011) but from what I can tell from its online table of contents, again, there isn't much on spin-offs. Of course, part of this resource may be used in spin-offs (from the perspective of the remaining entity and from the perspective of the spin-off entity but spin-off transactions seem to have their own special nuances. The type of info/material I am looking for would be the type (for spin-offs) that the Ferenczy resource has in it... which are checklists and such for other types of transactions. Thanks in advance for any help.

A calendar plan terminates and is paid out during 2010. The valuation date changes from EOY 2009 to BOY 2010. The 2010 AFTAP was certified based on the 2009 EOY valuation and is in excess of 100%. There would not be a material change in the AFTAP if it were recertified based on the 1/1/2010 valuation and I can see no reason why an actuary would have been required to recertify for 2010.

When filing the 2010 SB Is it correct to report the 2010 AFTAP on the Schedule SB based on the 12/31/2009 valuation? This would mean reporting the same AFTAP on 2 consecutive year's SB filings since that is the number that was reported last year.

The instructions to SB seem to suggest that they want that number to be the AFTAP based on the current year valuation results (specifically stated for non-BOY vals), but the instructions don't shed any light on how to handle this in the year after a change in valuation date.

A plan has immediate eligibility however the matching contributions have a 1000 hour allocation requirement for employees coded as part-time ineligible for benefits. So each year this group must work 1000 hours to get the match however full time employees do not have any allocation requirements. Is this a permissible allocation condition that just requires coverage testing under 410(b) or possibly could it be construed as a disguised service condition?

Your thoughts are appreciated!

So we're trying to figure out how to comply with the new participant fee disclosure regs, and what we keep coming back to is this: What are the fund companies doing? It seems that the effort between us as the TPA and the fund company needs to be somewhat coordinated.

Has anyone heard from Hancock, American Funds, Great West, ING, etc. etc. what they are doing, so that we can fill in the gaps? Or are they still trying to figure it out?

Thanks,

How does a company decide that an employee is terminated and eligible for a distribution? Specifically in the case of a part-time employee who gets called in on and off over a long period of time? Should it relate to whether or not they are receiving other company benefits?

A lot of threads on whether you can or can't invest in gold coins in a 401k PSP. But, I havent see anything reference doing so in a Defined Benefit Plan? Do the same rules and exceptions apply?

My client would like to close the US Growth Fund and and map assets and allocations to the LifeStrategy Moderate Growth Fund. The client does not have a QDIA

Questions:

Can someone tell me what information I should be providing the client with such as: requirements with respect to communications, etc.

Can you provide me with the Code or Regulations regarding fund mapping?

I wasn't sure which forum to put this in; my apologies if I should have posted this some place else. Anyway, thanks in advance for your input on this! I am studying for the ASPPA DB course and am considering also signing up for the DB webcourse. Interested in hearing what others who have used the webcourse think about it?

My client would like to close the US Growth Fund and and map assets and allocations to the LifeStrategy Moderate Growth Fund. The client does not have a QDIA

Questions:

Can someone tell me what information I should be providing the client with such as: requirements with respect to communications, etc.

Can you provide me with the Code or Regulations regarding fund mapping?

I'd like to know if I'm making moutains out of molehills. A volume submitter plan was restated in 2009 and submitted at the same time we were all scrambling to get our restatements done in early 2010. There was a problem with the submission because the GUST document wasn't signed on time. The employer paid a penalty and the Determination Letter was finally issued for the 2009 document. For a reason that I don't entirely understand, the employer asked their provider for a new document. I think they may have been looking for an SPD, but somehow they ended up with a 2011 restated plan. The next submission is years away, and they will probably need to restate again at that time. Of course, I'm going to go through the 2011 document just to make sure that changes weren't made, but assuming everything is status quo, my thinking is to toss the 2011 document, get a new SPD for the 2009 document, and get back on track. Or should I just let them keep the 2011 document and stop worrying about it?

I would love to her ideas on this. What does everyone do when they takeover a Plan and no one has a signed copy of the doc starting the Plan? In this case the Plan was started with a Gust doc in 2008 and then an EGTRRA Doc later that year.

Two similar problems. One Plan has 8 employees and the other Plan has 230 employees.

A life / disability insurance company did not provide notice of premium increase. In PA, what statute governs the rules concerning notices of premium change / cancellation for life / disability policies. Basically I want to know if a 30 day or 60 day notice is required.

Thank you in advance

Thanks in advance. I have wandered around the boards and decided that my question is just insane but I am going to post it anyway. DB plan in a hospital. Purportedly the hospital has employees who would rather take more in hourly pay than participate in the "benefits" programs (not sure if this means health and welfare in addition to any retirement plans). Sponsor wants to amend the plan to exclude the "no benefits" employees. For the sake of argument let's assume this would apply to new hires only. I am ok with an employee irrevocably opting out for whatever reason but there is something a bit unsavory, a bit manipulative, a bit smelly about opting out for more money...I have raised the possible CODA issue, and the issue of how on earth do you define the excluded class in the plan document...I have been assured that these "no benefits" employees would never amount to more than 30% of the eligible plan population so there would be no "reasonable classification" issue, but it still bugs me. The potential "no benefits" employees could in theory be part time or full time.

What am I missing? I don't have a good sense of comfort that the employee would necessarily be bargaining in an equal posisition of power vis a vis the salary/benefits conundrum, but I know that fairness in employment relationships is not the main concern of ERISA and IRS rules. Still and all this just stinks to me and I need either a good foundation to say oh heavens no you can't do that, or a good logical train to show me why it is not a problem. What a Monday is all I can say.....

There seem to be no instructions for Schedule A Part III. I'm guessing this is to be filled out on a cash basis but was looking for other thoughts. Specifically premiums for a prior year that get paid after the policy year is over.

I have a plan that has several different vesting schedules based on employee classification...

Group A: 3 Year Cliff with zero vesting until year 3

Group B: 3 Year Grade- 0-1=0%, after 2 =20%, after 3 = 100%

Group C: 3 Year Grade- after 1=25%, after=2 =40%, after 3=100%

Group D: 3 Year Grad-after 1=25%, after 2=50%, after 3=100%

Would BRF testing be required? Or since everyone is vested by after year 3, the vesting schedules would be considered nondiscriminatory?

Question 2: Plan changes vesting schedule for all new employer contributions. New contributions vest at a 3 year cliff. Old contributions vest at a 5 year cliff. Would BRF be required? In my opinion no, since all old money vests at one schedule and all new money vests at new schedule.

Question 3: Is a 6 year graded schedule deemed equivalent to a 3 year graded schedule. My thinking is yes since the 6 yr graded and the 3 year cliff are deemed equal and if you are using a 3 year cliff you can partially vest prior to year 3.

My client just EFiled their 2010 Form 5500-SF. Relius Web Client sends me a status update email for the filing indicating that the User ID and PIN are missing and that processing has stopped. When I check on the EFAST website, the filing is there ! Is the DOL now accepting a filing under these conditions? I've not seen something like this before.

A participant misrepresents his age at time of hire. At time of retirement we find that he is 65 and not age 58. He gets greater benefits at there is no subsidy for early retirement . I'd like to give the person the lesser benefit but believe that I must follow the terms of the plan. The plan does not have an "error correction" section in it. Anyone want to chime in on what the plan can/should do?

Question to consider:

A business manager is planning to redirect a portion of employees' hourly contributions from their money purchase pension plan (deferred taxation) to a supplemental unemployment benefit (SUB) (non-taxed) fund. I think this is permissible as long as he keeps some money flowing into the money purchase plan. However, he would still like to give his members some options which include:

1. Whether the plan could offer members the option to select a small percentage of salary to the SUB plan and the remainder of the contribution to the MPPP; and

2. Whether the plan could offer members the option to select a certain percentage of salary into the SUB plan on an annual basis.

My initial reaction is that this will create an assignment of income problem for the employer and plan. I remember the IRS has taken the position that if an employee is given the choice between health (or some other non-taxable plan) benefits and a contribution to a 401(a) plan, the employee is taxable under the assignment of income doctrine. Thus, it seems the above two mentioned options will incur this assignment of income problem. Has anyone else run across anything like this? I was trying to find some concrete research on this and was having problems. Any input is greatly appreciated!