Has anyone used, or is anyone planning to use, the PBGC's new "MyPAA" online filing system? I have a client that wants to try, but I'm hesitant to be the guinea pig.

We have just been informed that a participant who reched early retirement under one of our plans and requested a distribution will be returning to work with the plan sponsor on a part time basis.

Our initial investigation leads us to believe there is a problem here since NRD has not yet been attained.

In light of current projections that part time work will be a part of retirement for many, has anyone had experience with the current Govv't thinking on this type of arrangement? What sort of problems may the client encounter if this goes through?

Both of you have helped me in the past!

I'm having a hard time today...

Question relates to Flexible Spending Accounts and employee terminations.

Employee terminated May 1st.

They had contributed $400 of their election of $1200 but had only submitted

claims for $200 prior to termination. The plan document allows for a 90 day period to submit claims after the date of termination.

Isn't this employee allowed to submit claims up to the elected amount as long as they were incurred prior to the date of termination?

I think they are entitled to the entire election amount as long as the charges were incurred prior to the termination date, and as long as they were submitted within the claim filing deadline.

Thanks for your help.

Facts: A labor union provides a vacation plan for its members. Pursuant to collective bargaining agreements, contracting employers contribute:

(1) annual vacation pay, and

(2) the employer's share of FICA

to the plan. Union members receive their vacation pay net of FICA tax withholding. At year-end, the union reports each member's vacation benefit on Form W-2.

I believe that this arrangment is an ERISA welfare benefit plan, as defined in 29 USC 1002(1)(A). The plan provides a benefit described in LMRA Sec. 302(a). I also believe that the plan is required to file an annual Form 5500. There's no trust, which should be irrelevant; an ERISA welfare benefit can include any plan, fund, program, or other arrangement.

Any thoughts about this matter? Thank you.

Participant is 60 and wants a participant loan for a primary residence to amortize over 30 years.

I believe denying the loan on the basis that it will never be paid back is age discrimination, however, I cannot find anything in writing.

Are there any limits regarding the latest maturity date allowable that are based on age?

Can anyone point to something official looking?

Thanks,

If you are charging annual maintenance fees on SEPs, SARSEPs and/or SIMPLE IRAs, who is being charged: the participant's account? the participant? the employer? any combination of the above?

And, what fee is being charged?

Does anyone charge annual fees for non-ERISA 403(b) plans? If so, who is charged: the employee's account? the employee directly? the employer? any combination?

Tom P. or anyone using Relius...when imputing disparity for non-discrimination testing in a Safe Harbor 401(k) Profit Sharing Plan which utilizes the 3% SHNEC, does the Relius software "know" to only impute on the PS when I check that box or should I be testing "by hand"?

In a SEP plan, the employer has possibly left out an employee that was due a contribution for 2003. He had an extension on his taxes until aug 15, 2004. if the ee is due a contribution, i assume the contribution has to be made. but since it is after aug 15, can the employer still take a deduction on his tax return? and what is the process of making and reporting a late contribution?

thanks for any help..

For a 401k or p/s plan that is not subject to the J&S rules, do you think thqt spousal consent is needed for a hardship withdrawal?

On the surface, it appears not to be needed. However, one of the conditions for the j&s rules to not apply is that the death benefit go to the spouse (unless waived). Wouldn't allowing hardships without consent eat away at this right?

Any guidance w/b appreciated!

Due to a merger, company stock in the 401K plan is scheduled to be exchanged for cash about Sept 1st, with a blackout date of August 30. Notice of those dates is dated August 6th, not postmarked until August 20th and not received until August 23rd. This does not give a participant (and former employee) very much time to complete their planning about withdrawing company stock from the plan, selling it and taking advantage of paying only 15% capital gains tax on the NUA, regular tax on the basis, and a 10% penalty for being under 59 1/2.

My understanding is that Federal law generally requires that a participant in a 401K plan be given at least 30 days notice of any pending blackout period.

Does a participant have any recourse when they receive much so less than 30 days notice?

A participant is in a state sponsored contributory DB plan that qualifies as a "government pick-up plan", therefore employee contributions are pre-tax. If the same employee also benefits under a private employer 401(k) plan I would assume that the 402(g) limit under the plan (13k for 2004) is not affect by pre-tax contributions under the gov't DB plan, is that correct ?

the return was sent back for failure to include the audit report but it was returned over a year ago. at this point are the penalties the same as the penalty for not filing the 5500? in my view the penalty would be the same as the penalty for not filing the report.

Company X maintains a self-insured post-retirement medical plan for eligible former employees. In order to be eligible, the employee had to habe been eligible for an early or normal retirement benefit under X's defined benefit plan, disabled for at least 2 years or terminated under a severance arrangement after having met certain age and service requirements. Those former employees satisfying these criteria must also have at least 10 years of service with the employer.

To control the extent of its subsidy, Company X amended its plan to provide that

(1) those who had attained age 40 on or before a specified date would have the Company subsidy calculated under a formula, with those having a certain number of years of service becoming entitled to a subsidy of about 80% of the premium cost.

(2) Those who not attained age 40 as of a specified date and whose age and service did not equal at least 50 as of that date, had their Company subsidy calculated as follows: the Company created a hypothetical account to which it contributed $1,000 for each year of service with the Company, Each year, the Company would contribute the $1,000 as increased by a specified percentage. Upon becoming eligible for port-retirement medical, X would apply the hypothetical account at the time of the employee's eligibility to pay its portion of the premiums for post-retirement medical. The retiree was responsible for the difference. Once the account was exhausted, the former employee paid the entire premium.

(3) Employees hired or rehired after the specified date had no company X subsidy being responsible for the entire premium, although they would be eligible for the group rates.

Is there any issue on the general rules for eligibility for post-retirement medical under 105(h)? Does the Company X method for determining the extent, if any, of X's subsidy for post-retirement medical violate the eligibility nondiscrimination rules of 105(h), the benefits nondiscrimination rules of 105(h) , both or neither?

My client sponsors a qualified retirement plan. The plan has received a draft QDRO requiring it to make payments pursuant to a child support order. The attorney who drafted the proposed QDRO claims that the distributions are subject to the 20% income tax withholding rules applicable to eligible rollover distributions. Is he correct? Thanks.

I read this forum from time to time to get an idea of how Benefit's Managers think, but it always depresses me because half the posts seem to be about how to exclude people, how to legally reduce benefits, and how to retain privileges for the bigwigs while shafting the rank-and-file.

From time to time, I also read interesting articles about how bias and illegal action can be covertly accomplished through HR. For instance, check out this recent article on how black-sounding names can hurt job applicants:

http://abcnews.go.com/sections/2020/Busine...s_040820-1.html

I wonder: do Benefits Managers ever worry about conflicting pressures of their employer, the law (the spirit as well as the letter), and the right thing to do? Has there ever been a major class action lawsuit that was specifically aimed at Benefits Managers? Are there any notable examples of whistleblowers or people who have taken an important stand to protect the more disadvantaged segments of the organization they serve?

$200,000 or $205,000?

Thank you.

Can you have an Employer Profit Sharing points allocation method in a safe harbor 401(k) plan?

Can the cost for the distribution of SPDs to all employees in a 401(k) plan be paid out of the plan's forfeiture account? Our Plan Document does not specifically address this and we have just updated our SPD.

A participant who was a previous 5% shareholder has retired under early retirement provisions. He is eligible to receive his benefit now based both on early retirement and the fact that he broke service. Account balance is about $1.0 M.

Participant is refusing distribution. Other shareholders want the distribution to take place. Is there any way (other than waiting for participant to turn 70 1/2) to force participant to take distribution?

This is a Profit Sharing Plan that was merged with a previous Money Purchase Pension Plan. Normal form of benefit is J&S.

Thank you