The union is restating and revising its health and welfare plan and it is looking for a few sample plans to refer to. If any of you, able plan drafters, can provide sample FULLY INSURED multiemployer plan docs., the union would greatly appreciate it. Thank you in advance for your help.

Due to financial problems, a company failed to make Davis Bacon contributions to its 401(k) plan by the deadline under the Davis-Bacon Act, which is the end of the calendar quarter following the calendar quarter to which the contributions relate. Davis-Bacon contributions are treated as employer contributions for testing purposes.

The DOL audited the plan, and took the position that the Davis-Bacon contributions became plan assets when they were due to the plan. The DOL agent I dealt with said that this would be the DOL's position even in the case where there is a profit-sharing plan (not subject to minimum funding requirements) and a discretionary contribution is declared. The agent said the discretionary contribution becomes a plan asset when the employer's tax return is due. So if the employer declared a discretionary contribution and then failed to make it due to a change in financial situation, it would have engaged in a prohibited transaction.

The company also had some slightly late 401(k) contributions, so in anticipation of an IRS audit, we are looking at filing Form 5330 and paying the excise tax on the prohibited transaction.

My question is, has anyone had a similar situation where the IRS took a position similar to the one that the DOL took here and assessed an excise tax on late employer contributions (not late 401(k) contributions) under a plan not subject to minimum funding requirements?

I'd hate to get stuck in the 100% tier for tax on the Davis-Bacon Contributions.

(Note, to make the DOL go away, we accepted the agent's position. However, I was not able to find any official DOL or IRS authority for the position that employer contributions become plan assets before the time when they are actually contributed to the Plan.)

In process of converting spouse IRA to Roth prior to her reaching 701/2 in Oct.'03. I turn 701/2 in Nov & plan draw down my own 1st year's IRA which increases my AGI to over $ 100k.

Will the IRA withdrawal prevent spouse Roth conversion or can the IRA withdrawal be excluded from AGI when converting.

Thx

Erniet

I have a disagreement with an insurance company issuing an ERISA bond as to whether or not an investment in the stock (which is not publicly traded) of a small community bank is a qualifying plan asset.

I would sincerely appreciate the opinions of the other users in this forum. Thanks.

We're an employer considering adding employee paid group term legal, auto, homeowners insurance, long term care, and universal life.

Any other employers out there who have added these programs and any advice in choosing vendors or setting up this program?

I have a client with approximately 9,000 "lost" participants with accrued benefits of less than $10. All have had checks issued via force-out and returned so they are in a "outstanding check" status. Can anyone describe for me the legal requirements for handling these? My client operates in Minnesota - I haven't had a chance to look up their escheatment rules - I'm thinking that is their only option.

Thanks for your input.

Does anyone know any good links to find the average percentage of employees who contribute to a 401(k) plan? I've seen some old surveys but want something up to date. I've noticed plansponsor (as of 11/02) estimates 75%, but I thought that might be a little high. I'd also be curious to see % w/ balances vs. % making current salary deferral elections.

Thanks.

A profit sharing trust holds investments in non-qualified plan assets in excess of $1.3 million. (Approximately 75% of plan assets.) The plan participants consist of the owner of the corporation sponsoring the plan and his three sons. While I doubt it, is there any chance of the plan being entitled to the waiver for the audit without bonding the 1.3 million? Any other ideas?

THIS IS BASIC STUFF BUT MY MEMORY IS STARTING TO FAIL ME AND THE INSTRUCTIONS ARE WORTHLESS.

ARE ITEMS 1©(1) AND 1©(2)(B) ON THE B TO BE INCLUSIVE OR EXCLUSIVE OF NC FOR AN EOY VAL?

THANK YOU IN ADVANCE!

DRAPER

I'm looking for help and your thoughts on the following scenario -- an employee has been on a medical leave for more than one year. She is receiving LTD payments. She is recently divorced and was taken off her former husband's medical policy after the divorce. She talked to the HR dept. of her employer and was told that she could go on the company medical plan. So, in March 2003, that is what she did. She has now heard from the company that allowing her coverage under the company plan was a mistake. It seems that the CBA with her union provides that employees on medical leaves can not go back on the medical plan until after a waiting period. The company said that her coverage has been terminated as of March 2003 and she must repay all the benefits she has used since then. Wondering if she could go back in time (constructively) because of the mistake about coverage and get COBRA coverage from the husband's employer. Or, under HIPAA, might her employer have to give her coverage beause she had credible coverage under the husband's plan notwithstanding the provision in the CBA? Any other ways out of this unfortunate situation? Thank you for your help.

A non-profit organization that has previously made employer contributions to its 403(b) plan has passed a board resolution stopping the employer contributions. Is the plan now a non-ERISA plan? May it stop filing Form 5500? Thanks for any guidance.

Please be careful. In the United States every year, more people are killed by vending machines than by sharks.

Are in-service distributions protected benefits under 411(d)(6) or can that language be removed when restating the plan?

Company ABC participates in a Multiple ER Plan within a PEO arrangement. Employee with Company ABC terminates employment, but continues to work for Company DEF, which happens to be another participating employer within the same arrangement. Is there a distributable event here or would you transfer the assets just as if you would transfer prior credit for service, etc. (in accordance with the plan document of course)?

Thank you!

There was a proposal to remove social security numbers from benefit statements. Did this include removing social security numbers from the valuation reports also?

Is there a minimum Mileage amount for medical treatment traveling expenses that a person can claim for reimbursement?

I have a client who is trying to claim for a trip to the doctor that was only 10 miles away. Is this eligible for reimbursement being so close to his home?

We have a situation where we have adopted a prototype 401(k) plan. We are in the process of establishing a new corporation that will NOT be within our controlled group of corporation, but we want to enable this corporation to participate in the 401(k) plan. We plan on converting the current prototype 401(k) plan into a multiple employer plan to permit the unrelated corporation to adopt it. What must we do to accomplish this? Is there any guidance that might be helpful?

Thank you

What is a reasonable transaction fee for buying and selling employer stock in a retirement plan? Are there typically any other fees associated with maintaining employer stock in a retirement plan?

Does an actuary have a (legal/professional) responsibility to minimize or maximize a DB plan's contribution by exploring the effect of different cost methods etc?

That is, can an actuary be held liable because the client did not get higher deduction which could be been attained by use of "permissible" funding method etc?

Or the contribution was not minimized (and could have been), as a result of which there is a funding deficiency and the client had to file Form 5330 and pay the penalty?

If an actuary does have such a responsibility, what if the client does not want to pay for the extra time & effort involved in doing so!?

Has there been a case where an actuary was held responsible for not computing higher permissible / lower required contribution?

Hi,

Upon a pension plan's investment in a partnership which causes the assets of the partnership to become plan assets (no exemptions apply), if the partnership agreement calls for additional partner contributions, in particular a drawdown of a partner's initial capital contribition, will such transaction be considered a prohibited transaction with a party-in-interest?

Thank you