One unon fund (call it Widget Workers) wants to make a loan to another fund (call it Widget apprenticeship) for purposes of purchasing land to build new building for training. Funds have some, but not all, common trustees....ignoring the issue of this being a prudent investment, is this a PT? Anyone aware of similar situations with PTEs obtained?

What are the fiduciary duties of an employer/plan sponsor in regards to beneficiary designations? In terms of keeping track of them, making sure they are completed, etc. Maybe fiduciary isn't even the right term, but how much effort do we need to put into them to best look out for the plan and its participants?

Thank you.

The regs seem to indicate that a change in assumptions will put my plan out of compliance:

1/1/2008 AFTAP - > 100%

1/1/2009 AFTAP certified on 5/15/2009 <60%

No COB or PFB

I have been operating as if the plan has frozen accruals and cannot pay lump sums. There has been one person that terminated employment and could have taken a lump sum if the plan was not certified.

Plan sponsor decides to move to asset smoothing and actuary decides to change other non-mandated assumptions (ret age). 2009 AFTAP > 80%

This would be a material change since the plan operation would be impacted. In addition, it appears that if I recertify, I should have applied my new certification from 5/15. Then my plan would be out of compliance with the terms of the plan.

Does anyone see a way out of this?

ERISA 403(b) Plan has several TIAA-CREF contracts used by participants. All elective 403(b) contributions up to 6% go to the RA account and the match contributions (match is 100% up to 6%) go to the RA account established for each participant. Amounts deferred above 6% go to a GSRA or SRA account.

Loans are not permitted from the RA account but are permitted from the GSRA account. How can this plan comply with the DOL requirement that the loan program be available on a reasonably equivalent basis to all participants and beneficiarires?

Thanks

A plan that is not covered by the PBGC can make a maximum deductible contribution to the DB plan and a 6% of comp contribution to DC plan.

However, if the DB plan is covered by the PBGC the combined plan limit does not apply and then the employer can contribute up to 25% to the DC plan.

Can an employer that would be eligible for the PBGC coverage exemption, choose to be covered by PBGC in order to obtain the higher DC plan deduction limit?

Eg prof employer w less than 25 participants.

Thanks.

Client wants to terminate ESOP that has been frozen as to new participants and benefits as of 12/1/05. We did not represent plan at that time but have been told that participants were given notice of plan freezing. We would like the effective date of termination to be 12/31/09. What notice to the participants is required? If notice is required what is the required notice period? I have found a lot of discussion about 204(h) notices for DB and MPP plans and plans subject to PBGC rules, but nothing for DC and ESOPs. I was going to just prepare a SMM with the PPA, HEART and WRERA changes and include a notice of plan termination date on 12/15 (15 days notice prior to termination date). Is this sufficient?

We have employees (about 40) who have been enrolled in the HDHP plan since 2007 and 2008 that refuse to open an HSA account. The employer makes contributions on a quarterly basis to HSA accounts. However, for the employees who have not opened accounts, the employer money goes into a general holding account. We continue to send letters and emails to these employees for the past 2 years informing them they must open a bank account. We continue to receive no response. Therefore, we have to go through the process of getting this money back each year since the HSA is considered not to have been established.

Can we send a letter to these individuals stating that if they do not open an account by a certain date, they will not be eligible for the HDHP plan and they will have to choose another medical plan? Is there any IRS (or other) regulation that states we cannot do this?

Plan has semi-annual entry dates (1/1 and 7/1), and a 1 year of service (1000 hrs) requirement. Entry date is following or coincident with satifying the requirements.

If a person was hired on January 2, 2009 and worked more than 1000 hrs in 2009, when would she enter the plan?

I would contend that the one year of service is satisfied on Jan 1, which is coincident with an entry date. Is that correct?

I got an ad for Viagra (of Cialis, or some other crap) today via PM. I did not notice a "report" button. Is there one? Can there be?

I did try to "block" any future PM's from this "person," but the account was no longer active.

Below is a link to the page that contains the syllabus for the EA-1 (in another link within the page).

I am basically starting from scratch here, so I was hoping an Enrolled Actuary can take a look at the texts and recommend an order of reading.

Please help- time is of the essnece as I wish to take the exam in May. Thank You.

http://www.asppa.org/Document-Vault/Docs/EE/EA-Exams.aspx

We have an ERISA 403(b) plan (had employer contributions) that is in the process of terminating. We hope to have it completed by mid-2010. The sole vendor is co-operating with us to get this terminated. There have been no employee or employer contributions for several years. There are around 130 participants. According to Field Assistance Bulletin 2009-02 transitional relief - none of the contracts need to be counted because they meet the requirements below. They are also not counted in the 5500 count. So am I preparing a 5500 with 0 participants and 0 assets?

Any and all thoughts would be appreciated.

"Specifically, the administrator of a 403(b) plan does not need to treat annuity contracts and custodial accounts as part of the employer’s Title I plan or as plan assets for purposes of ERISA’s annual reporting requirements provided that:

the contract or account was issued to a current or former employee before January 1, 2009;

the employer ceased to have any obligation to make contributions (including employee salary reduction contributions), and in fact ceased making contributions to the contract or account before January 1, 2009;

all of the rights and benefits under the contract or account are legally enforceable against the insurer or custodian by the individual owner of the contract or account without any involvement by the employer;(5) and

the individual owner of the contract is fully vested in the contract or account.

Moreover, current or former employees with only contracts or accounts that are excludable from the plan’s Form 5500 or Form 5500-SF under the above transition relief do not need to be counted as participants covered under the plan for Form 5500 annual reporting purposes. "

I'll never understand people who hit the snooze button each morning - especially those who do so more than once.

I mean, I hate to get up in the morning to the alarm clock as much as the next person. Why do it again, and again, and again?

There go those voices in my head again. I can hear them very well. Unfortunately, they are speaking Spanish - of which I know very little, so I have no idea what they're saying........I think they're talking about me.

A plan sponsor has approached us to do an illustration for a DB/DC combination of plans. They had previously met with a firm who discussed with them "backloading" the plans with almost $5 million in contributions to make up for the last 25 years of not contributing. For the life of me I can't remotely think what they might have been thinking about? Does anyone have the slightest idea what they might have been referring to with this comment?

Hi,

I have a plan that all assets were distributed on April 29, 2009. When completing the form 5500 would I use the April 2009 date as the plan year end and mark final & short plan year or use the regular plan year end and mark as final.....

However, since the filing deadline is 7 months after the assets are zero I am thinking the April date for year end is the correct way but would like to her other thoughts...

Thanks,

Jason

Are the 2009 instructions available? I'm not having any luck finding them where I can access it. Previously the participant count instructions have been pretty specific about 401(k) participant counts. I'm looking for guidance on how the 403(b) participants will be counted (same as 401(k)??) so that our auditors can be clear on which plans will need audit for 2009.

Thanks.

Code 411(a)(7)© permits restoration of an accrued benefit if the plan provides the opportunity to repay the full amount of the distribtuion with interest at the rate determined for purposes of subsection 411©(2)©.

I am looking for support that this means 411©(2)©(iii)(I) (120 percent of the fed mid term rate) and not 411©(2)©(iii)(II) (417(e).

Can anyone point me in the right direction? Thanks.

I have seen nothing specific in instructions that refer to 403(b) participant counts for 5500. Is the count based on active eligible employees plus terminated employees (the same as a 401(k) plan), as opposed to participants with balances only?

a two trustee plan has violated the annual addition limits as one participant, who happens to be one of the trustees, received in excess of his 2009 earnings. He refuses to sign off on a refund. Can the other trustee request the refund without the others signature?

Can a plan opt to DO NOTHING with regard to the 2009 RMDs, give no elections to the terminated participants and beneficiaries, make all distributions per plan, permit no rollovers of the RMD amount?

If yes, does the plan have to note that it is following its own rules? If the plan document references compliance with 401(a)(9) is it then obligated to amend even if it does nothing different?