Employer is having severe financial difficulties and, 2 months into the plan year, wants to eliminate non-elective safe harbor contribution without terminating the plan. For some reason, the regs do not permit elimination of the SH NEC unless the plan terminates--although the regs do permit elimination of the match SH: in both circumstances, SH contributions must be made until the plan amendment eliminating those contributions and the plan must pass ADP/ACP for the entire year. Any idea why the regs don't permit elimination of the NEC with the same limitations? If you can eliminate a money purchase contribution on a prospective basis, why not a SH NEC?

We have a Sarsep plan in our company. We have a employee who is 52 years old and making 60k year. Per the contribution limits he can contribute to 25% of his income(15k) or 15,500 whichever is lower. Therefore he can contribute 15k. Now my question is since he is over 50 can he contribute 20,000(15k+5k) or is he limited to 15k(25% limit). Thanks

Does anyone know of a TPA that would handle health claims for international employees?

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I have a small db plan (4 employees, owner-family) that is terminating. We are amending the plan to provide for lump sums. While we know we need to provide PPA basis lump sums at a minimum, and 415 lump sums as a maximum, we'd like to define the basis as the interest rate that will exhaust all plan assets on the termination date. The 4 participants have all elected a lump sum. Has anyone done this, can it be done legitimately in a plan document, and if so, how would we word the amendment to define the interest rate?

once again I believe this has been covered on these boards, but I can't find the thread...

If plan has no distributions during the plan year and is a crosstested plan with a profit share allocation for the plan year, should a Schedule R still be filed to report the coverage information?

I am a bit of newbie in the health insurance world and would appreciate any thoughts anyone may have.

Hospital is switching from a fully insured health plan to a self-funded plan. In the past, non-hospital owned entities (various physician groups, emergency room group, free clinic, etc.) participated in the fully insured plan by paying the COBRA premium (I am not sure if this was really permissible). With the change to a self-funded plan, can those non-hospital owned groups continue to participate? If so, do you just continue to pay the COBRA premium? Or bill them for actual claims paid for those groups? What if one of the non-hospital groups has a large amount of claims and it exceeds the COBRA premiums - does the hospital have to eat the excess?

I am primarily concerned with the funding issues right now. We have counsel looking into the Stark/inurement issues.

We are a true daily tpa. A few clients have SDBs available in their plans and we are wondering if anyone has any guidelines or suggestions on what charges are appropriate for the administration of the SDBs? Obviously from an administrative standpoint, it causes more work for us to record keep the SDB versus the "main" plan accounts with our custodian since we don't have all investments in creation set up in our software, etc.

Can we charge the participant directly for the admin of the SDB even if the employer pays for the plan expenses other than these? Any idea of amount that would be appropriate?

thanks!

I have a plan that uses the prevailing wage contributions to offset the safe harbor match. The match is calculated and deposited quarterly (the basis in the plan document is quarterly). The prevailing wage deposits are used to offset it each quarter. We are trying to determine if the prevailing wage amounts can be carried forward from quarter to quarter. For example:

Participant A

1st quarter match $500

1st quarter PW $800

--------

Net Match Deposit $0

2nd quarter match $500

2nd quarter PW $250

------

Net Match Deposit $250

If you combine the first 2 quarters contributions, you would have:

Match $1,000

Prevailing Wage $1,050

----------

Net Match Deposit $0

The client wants to be able to carry forward the prevailing wage contributions that exceed the quarterly match. Does anyone know if this can be done? I can see where this could be troubling based on the fact that the match must be deposited by the end of the next quarter.

Tim

Here's a great Oct 14th question - maybe even better tomorrow.

Can 5500's be scanned, transmitted to client & signed & filed?

A client is considering participating in CALGOVEBA, a multi-employer trust that allows participating agencies to maintain separate asset pools to pay retiree health premiums and to reimburse medical expenses of retirees. The program provides for employer contributions and for pre-tax employee contributions that are described as "mandatory," because they are required pursuant to collective bargaining agreements (MOUs). So far, so good.

However, CALGOVEBA has advised employers that the MOUs may require a minimum pre-tax payment of all bargaining unit members and permit members to elect to make pre-tax contributions at a higher level of contribution. Their position apparently is that since pre-tax contributions in general are required by the MOU, permitting individuals to choose higher contributions does not create a problem of individual choice under section 105.

The VEBA has a favorable ruling on its tax status under section 501©(9). It does not have a ruling on the tax consequences to participants under section 105. My view is that offering individual bargaining unit members the chance to elect among various contribution levels results in inclusion of those higher contributions in taxable income.

Anyone have experience with CAGOVEBA or have any thoughts on my analysis? (I'd be happy to be wrong!)

I have reported fees on both plans Form 5500

2 plans participate in 1 master trust

On master trust Form 5500 do I need to show these fees again?

Let say as of the 2009 AFTAP for a calendar year plan (with January 1 valuation date) is certified to be 103% and that this Plan was frozen in 2007. So, no contribution is required for 2009. An HCE terminates employment on June 12, 2009 and wants a lump sum distribution. The Plan Sponsor is willing to pony up the additional amount to credit to 2008 so that the AFTAP after distribution would be 110%. That is (assets 1/1 - lump sum) / (FT 1/1 - 430 liability for participant) = 110%.

Is it necessary to recertify the AFTAP?

For that matter, forget the distribution. Suppose the same facts but the Plan Sponsor just contributes more for 2008. Is it necessary to recertify the AFTAP?

The conclusion is that since the circumstances if the AFTAP were reissued would be more favorable, then there is no purpose in recertifying the AFTAP other than to make it agree with Schedule B.

Agreements, disagreements, don't knows, don't cares?

Can a dependent, working for a different company, claim COBRA insurance premiums (dental/vision) through my FSA at my company?

Top Heavy CB and a PS Plan.

Both documents say TH contribution of 5% in PS.

Employee is only eligible in CB Plan due to definition of eligibility.

Does he get 5% in the PS plan even though he wouldn't be normally eligible or 2% accrual in the CB?

We have a new ee who negotiated immediate eligibility for health plans. However, plan states 90 day wait. Is there any way around it for this ee while still maintaining 125 status? Any options?

Thanks -

Suppose a plan is going to be subject to a benefit restriction in 2009 and has enough credit balance to avoid the restriction.

Can a plan sponsor elect to use the credit balance first to offset the minimum then see what is left over to avoid the restriction, or does the restriction take precedence?

The proposed reg under 430(f) states that the minimum offset is applied as of the valuation date, while the reg under 436 states that any mandatory burning of credit balance is applied as of the 436 measurement date. So, I'm thinking that if I finish my funding valuation first and have a sponsor election to use the credit balane to offset the minimum, I can do that first (assuming the final regs don't change this).

Any other thoughts?

What is the actual due date for a sponsor to sign the Board Resolution terminating a DB plan?

Assume the plan was previously frozen, and all participant notices where prepared and distributed on a timely basis. Can they sign it anytime before the designated date of plan termination?

Any input is appreciated.

What counts does one put on Form 5500 for a H&W plan- is it just those enrolled in medical or anyone who is eligible to enroll?

Does everyone eligible to enroll get an SPD and SAR or just those actually participating?

thanks

Lexy

Can a single rabbi trust be used when the execs of two or more companies in a control group are participating in the nqdc plan? For example, assume the plan is sponsored by a holding company, and 2 first tier subs have executives that are participating. Holding company sets up the rabbi trust, but the subsidiaries make the contributions and make the benefit payments. Assets are subject to claims of holding company's creditors, but not to claims of creditors of the subsidiaries.