I'm looking for the disabled life mortality table, "1979 PBGC Table for disabled lives receiving Social Security benefits".

Does anyone know of a link containing the table or, if not, where I can get a copy of the complete table?

Thanks.

Plan allows for multiple loans. Participant had 2 outstanding loan balances as of June 2002 one amount of $16,000 and $29,300.00. The participant has paid off the $16,000.00 loan in August 2002 and has a current outstanding balance on the $29,300.00 loan of $24,460.00.

His vested account balance exceeds $100,000 so he would be eligible for a maximum loan of $50,000.00. So, with the two prior year loans do we have to take in the aggregate amount of the loans as of June 2002 totaling $45,300???? If so, then the calculation is the highest o/s loan balance would be $45,300 - $24,460 (current balance)= $20,840. Then maximum loan of $50,000 - $20,840= $29,160.

Take the $29,160-24,460=$4,700.00 available for new loan.

Please anyone confirm if this is the right basis.

Anyone from this message board attending either of these events? EBIA is sponsoring the Advanced Cafeteria Plan Seminar in Seattle in July and ISCEBS is sponsoring the Symposium in Phoenix in September. Just interested in networking a bit if anyone will be attending. Thanks!

Does a change in an employee's spouse's work schecule (FT to PT) qualify as a status change such that the employee can now enroll mid year in the DCSA? The spouse was NOT in a DCSA through her employer and is not going to PT status due to school, health, or to search for another job. In fact, the stated reason is so the spouse can spend more time with her children. Nevertheless, the employee now wants to use this event as a reason to join the DCSA.

The regulations I could find on this topic through EBIA, though not exhaustive, indicate that a change could be allowed to an existing account if the change in a spouse's work schedule necessitates a change in outside child care required. Again, this is not the case in this situation. I have not found anything that would seem to allow the employee to enroll in the DCSA when his spouse moves from a FT to PT status. Any opinions?

Good Morning:

I am trying to find an answer to the following question. Does a municipality in NY, that has over 100 employee's, need to file form 5500 for their welfare benefits? I am not sure if they are exempt or not? Please get back to me as soon as possible.

Thank you,

Wayne

Client has a shrinking business, and as of 2002 is the only employee and only participant in the plan. For 2002 we are shifting to filing the EZ.

I recall from a seminar years ago that in anticipation of this shift, you must mark the "Final Return" box on the last full 5500 filed, and the following year you file the EZ (but do not have to mark the "First Return" box).

Can anyone point me to that cite? Does my memory serve me correctly?

Thanks!

If a plan permits the purchase of life insurnace at the discretion of the participant and the only participants that purchase life insurance are Key and HC employees, is this viewed as a discriminatory benefit/right/feature? Can you please cite a source?

Thanks

If a 401(k) plan allows for rollovers from other qualified plans and IRAs, does this mean it automatically allows for rollovers from SARSEPs? Where would I find guidance on this?

Thanks.

New IRS regulations re calculation of earnings on excess IRA contributions make reference to IRAs that are "normally valued on a daily basis." Assuming that there is nothing in the IRA's governing document that addresses the timing of valuations. how is it determined whether or not an IRA is "normally valued on a daily basis"? Does the IRA custodian's ability to determine today's valuation today make an IRA "normally valued on a daily basis" even if the custodian does not actually capture valuation information for the IRA between the dates of statements or actual transactions?

Is there a reference point for defining the term "daily valuation" in the IRA context? Does the term really mean anything?

Our office is in the process of creating a 412(i) procedural list for implementing 412(i) plans. We are seeking any suggestions, specifically concerning the following:

1. The advantages / disadvantages of establishing the plan on a beginning or end of year valuation date?

2. Can the plan be established in mid-year, and if so, can compensation be used for the entire plan year?

3. Can the annuity and/or insurance premiums be paid quarterly or must they be annual?

I appreciate your input!

Richard

Are 457 plans required to issue a summary plan description to its participants ?

I would think not, because a 457 is not an ERISA plan.

However, how is the plan supposed to educate a participant as to what a 457 is, how a 457 works, and the participant's rights in a 457 ?

I have a leveraged ESOP client with a matching contribution feature. I'm hoping that someone can consider my thinking about the scenario below and tell me if I'm going about this in an appropriate manner. The facts are as follows:

The matching contribution (50% of salary deferrals) for the year is $50,000.

During the plan year, cash contributions of $50,000 were made to the plan.

Of the $50,000 contributed, $40,000 was used to make the payment on the ESOP loan.

There were 1,000 shares released from suspense by the loan payment.

The share price at the end of the year was determined to be $35/sh.

The end of year allocation will be $10,000 in cash and the 1,000 shares.

Because the FMV of the allocation at the end of the year is only $45,000, has the employer satisfied it's matching formula? I know that as far as their deduction goes, they've contributed $50,000, but how do I reconcille the fact that the FMV of what was allocated is $5,000 less than this?

Thanks for any input.

A plan failed to get a required audit performed for the 2000 and 2001 plan years. Due to sales of certain divisions of the company, adequate records do not exist to audit the financial statements for the related periods. What are their options, if any?

There is no doubt that 457(b) governmental plans come with a fiduciary responsibility. My question is where an employer should look to find a framework for this responsibility - should they look to ERISA? If so are they bound by that, meaning could they be sued for breach of fidcuciary responsibility under ERISA type topics even though they aren't technically covered by ERISA? How does an employer specifically define the Fidcuciary responsibilities it has and how do they document that they followed specific procedures related to that responsibility?

Next, suppose a district offered a 457(b) with 4 options, 2 options paid an upfront commission, 1 paid an ongoing fee to an advisor via AUM, another didn't compensate an agent at all. The districts contracts exclusively with agents to educate participants on their investment choices and it is highly unlikely the agents will disclose or sell the "no-load" option. My question is won't the agent, who under ERISA would be a fiduciary, breach his/her fiduciary duty everytime he recommends a commission/fee option over the no-load option because of "Prohibited Transaction Rules?" The agent benefits by recommending one option over the other which clearly creates a conflict, it seems to me that this is a breach, if it isn't why not and isn't it a breach under ERISA? Wouldn't this create a strong case for an employer to use a single vendor or only vendors who have the exact same compensation structure?

Thanks for the help - I see this as a situation that will be coming up a lot in the future.

ScottyD

I can't seem to get to the SOA site that has the month end Moody's Aa interest rates. Is there another site I can go to, or can anyone help me find out the rate for May?

Not a QDRO, but seemed like the right message board.

We have an employer that received a QMCSO, but the named participant is the spouse of an employee. Looking at ERISA Section 609(a) and the regs, it does not appear that a QMCSO must specifically name an employee (vs. a non-employee participant) to be valid. However, the National Medical Support Notice provided in the regs appears to contemplate that QMCSO's apply when an employee is named in the order, and that naming the spouse of an employee would not obligate the plan to comply with the order.

Has anyone run across this type of situation? Any citiation to authority on this?

A plan document is (mistakenly) amended to exclude union employees from participating in the plan. Only one union employee was participating at the time of the amendment and his status was not changed to "ineligible." Therefore he kept participating.

Under Rev. Proc. 2001-17, when an ineligible employee (due to minimum age and service requirements) participates, the plan can be retroactively amended to change the age and service requirements so that the employee (and all like situated employees) can participate.

Can the plan also be amended when the employee who participated is a member of an excluded class (i.e., retroactively amend the plan to allow union employees to participate)?

A plan document is (mistakenly) amended to exclude union employees from participating in the plan. Only one union employee was participating at the time of the amendment and his status was not changed to "ineligible." Therefore he kept participating.

Under Rev. Proc. 2001-17, when an ineligible employee (due to minimum age and service requirements) participates, the plan can be retroactively amended to change the age and service requirements so that the employee (and all like situated employees) can participate.

Can the plan also be amended when the employee who participated is a member of an excluded class (i.e., retroactively amend the plan to allow union employees to participate)?

Excuse me if this has been asked before -

A safe harbor plan will be deemed to satisfy top heavy if the only employer contributions made are those needed to satisfy the S-H requirement (and no reallocated forfeitures).

What if the additional contribution is the top heavy minimum? Assume the plan is top heavy for the 2003 plan year. The top heavy minimum is made in 2004. The employer wants to go S-H for the 2004 plan year. Will the top heavy minimum contribution made in 2004 prevent the plan from being deemed to satisfy top heavy in 2004? And so on ...

can a person roll his Roth IRA into a qualified plan if the plan permits?