Hi,

I am a member of my employer's 457b oversight committee. I learned a few weeks ago that our former lead consultant started working for our current TPA in early June of this year. We have a new investment consultant who started working on July 1st of this year. I spoke with some of the members individually about this and it comments ranged from "nothing is wrong" to "this is unethical behavior." Last year, some members of the committee including me were very critical of this former lead consultant because we felt the consultant was looking our for the TPA by selecting funds that charged high fees than looking our for the hard working employees. Looks like our instincts were right because the lead consultant eventually started working for the TPA. What do you think? If any of you have similar scenarios, please share.

Thanks,

Steve

What are other TPA's using for vesting on individual accounts statements as far as which year to apply on the upcoming statements (12/31)?

We are comtemplating using 12/31/2006 vesting information then updating as census information for 2007 is received but don't see any clarification as to whether or not this would be appropriate.

I understand that the employer must now have a contract with vendors, but is there a problem if the employer transfers all existing contracts with various vendors to one vendor (so long as the new contract with the single vendor meets all the requirements for distributions, etc.)?

Also, with a qualified plan, a blackout notice typically is required in a transfer situation. Would this also apply to the 403(b) transfer?

A collective fund will often hold mutual funds that charge their own fees. Do the underlying fees charged by investments of a collective fund need to be disclosed to participants for 404© compliance?

I thought this statement with regard to fee disclosure that appears in the preamble to the 404© regulations was interesting: "This requirement relates to the dislscure of fees and expenses directly assessed against the participant's or beneficiary's account, not expenses, fees or commissions incurred by the investment alternative attendant to the operation and management of the investment alternative."

Can an employer sponsor two 401k plans because of different options offered by providers. Namely, one provider allows Roth, and one does not. The Employer wants to establish a plan with the non-Roth company, but wants Roth. So he wants to establish two plans. Can they do that?

Does anyone have the actual formula for determining each employees EBAR? I need to calculate this by hand for an employer to verfye the software...

I need the EBAR formula for a comparability plan. In the past I have used the administrative software, however, I have an employer who wants to verify the results. Thanks.

participant died over a year ago. amount in excess of $5,000.

spouse makes no response as to receiving distribution.

what happens after 5 years?

i have an owner whose mother and father both work for his company and they have worked 1000 hrs in the past and are elig for the plan- new plan for 2007. The parents are still working and will not participate --they will be excluded. they will be included in the a4 tests as 0's. question is, is there a minimum comp they need to avoid any issues with irs ? is it as simple as min wage mult by the number of hours?

If an employee's spouse is going through her open enrollment and the employee now wants to drop our coverage and go on the spouse's health plan, is this allowable? Essentially, is Open Enrollment considered a life event? I wouldn't think so but I wanted to double check.

A plan operated as a safe harbor plan with a basic match in 2001, but the Plan Sponsor never made the safe harbor matching contribution. Plan Sponsor corrected under VCP and made the safe harbor matching contribution with earnings in 2007. Plan was frozen in 2006. Due to the freeze, there were no other contributions to the Plan in 2007 except the late safe harbor contribution. Plan Sponsor is now terminating Plan. Does the Plan sponsor need to perform 410(b) coverage test for 2007 or are the late employer contributions considered PY 2001 or 2002 contributions? The 2001 SH match normally would have been made in 2002 by the tax return deadline.

Please disregard.

Have a great day.

A 401(k) with Safe Harbor had 2 participants become eligible in November 2006. The plan contributes the safe harbor at the same time as deferrals. The two participants chose not to defer and were overlooked for the safe harbor contribution. How should we fix this?

Also, what compensation would be used to base the safe harbor contribution on? Would they receive 3% for all comp in 2006 or only the comp after eligibility?

Our firm is not involved with 412(i) plans, but we were asked if we knew anyone who could review a 412(i) plan document.

If you know of any 412(i) plan document attorneys, please let me know.

-Thanks!

Not sure if anyone has heard about this bill recently proposed, but it seems to make sense to me. A postponement of the funding rules effective date from 2008 to 2009 sure seems in order given the state of guidance available.

Plan Advisor on HR 3868

I wrote my congressman; might not be a bad thing to do by other members of the board (what's that old saying about you can't complain if you don't speak up).

We have heard that a 204(h) notice may be required to be distributed by November 16th to notify employees of the reduction in lump sum values that will occur effective 1-1-08 as a result of implementation of the new 417(e) interest and mortality rates under the PPA.

Anybody heard otherwise?

When does a distribution form a governmental 457 not require 20% withholding? Does the age of the participant have anything to do with it? For example, is a participant that is older than 59 1/2 subject to the 20% withholding requirement? Or is that still considered an "eligible rollover distribution."

Thank-you.

Does anyone have working knowledge or documentation on whether or not an EE may contribute to a MERP?

I have been writing a number of bridge plans, using a HDHP and traditional HRA. However, clients have inquired as to whether or not they can have the EE contribute (particularly for anything above an EE enrollment) to reduce the liability. I have seen some vague reference to this on the internet and was looking for better evidence.

Shortly prior to end of 2006 Employer segregated out terminated participant's accounts and proposed to pay them out. 1099-R was issued, however, admin personnel never sent check. Thus, account balance stayed in segregated account until recent plan internal audit (not IRS). Off the top of my head appears that reasonable correction would be to issue corrected 1099-R's (if possible) and distribute out acct balances plus the higher of rate of return for period in question or IRS underpayment rate under §6621. There are also the distribution forms issues as well. Any suggestions appreciated. Thanks.

Any of you ASPPA D.C. conference attendees have any good insights or anything new on the AFTAP certification for 2008 distributions. I've read the ASPPA asap notice sent out a few weeks ago and a few other articles, but still would appreciate hearing anything anyone found notable or particularly interesting at the conference. Any particular session especially helpful for those of us relegated to buying the conference CDs when they're available ?