Is a welfare plan (health or disability) allowed to require participants to file claims through e-mail? The electronic distribution regs don't seem to address this and I would think there must be some kind of protection for employees who don't have access to e-mail, but I can't find such a protection in the law.

Employer, pursuant to a collective bargaining agreement, agrees to pay each employee who terminates employment on or after age 65, $250 per month in cash. The reason this was implemented was to give the retiree cash to help pay for health insurance premiums, though there is no requirement that the cash be used for such purpose.

It seems to me that this may well be an ERISA pension plan as it is a program that provides retirement income to employees and does not meet the safe harbor exceptions under DOL Reg. 2510.3-2(B). Does the character of this arrangement as a pension plan change if the employer requires the payments to be used for the payment of individual health insurance premiums? I don' think this changes the character as a pension plan, but I could be missing something.

If it is a pension plan, could we add these payments to their existing defined benefit plan by amending said plan and stating that each retiree will receive, in addition the the regular pension benefit, an additional $250 per month as a severance type benefit? If we can/should put this in the pension plan, I assume that we cannot require the $250 to be paid in a lump sum and that we would have to annuitize the payments, with an option to waive the annuity and take a lump sum.

Any comments would be greatly appreciated.

Under the May 8, 2002 proposed 457 regulations I am a little unclear on two issues and would welcome any insight anyone may have.

1. If a tax-exempt eligible employer becomes a for-profit employer and does not terminate their plan how does that affect the taxation on amounts previously deferred by plan participants.

2. If a tax-exempt eligible employer becomes a governmental employer and does not terminate their plan how does that affect the taxation on amounts previously deferred by plan participants.

are funded deferred compensation plans governed under ERISA.

does it matter if they are funded or unfunded?

thanks

I thought IRAs were limited to earnings but recently saw a note about someone opening a ROTH IRA based on his son's summer earnings of mowing the lawn. Is this true??? How can he do this?

I have 2 young children. My daughter just got her first job and my husband and I are considering opening an IRA which will match her earnings this year (noting the max allowed).

I'd like to get others' opinions on this issue.

It appears to at least me, myself & I, that Proposed Reg 1.125-2 Q&A 7 allows one to offset health FSA forfeitures by claims of those who underpaid (e.g. a terminated employee who utilized max of $ 2500 and only put in $1,200)

Others' thoughts on this?

Experience with this?

Our plan allows forfeitures to be offset by plan expenses for year in question.

Does anyone see this as violating the exclusive benefit rule?

I am on FMLA and have about 6 weeks left. My company has been paying my insurance premiums. I have an opportunity to return to work one day a week. My company does not provide insurance unless you work 32 hours per week. I believe that my employer would like me to work the 1 day a week for the next 6 weeks, but I cannot do it if I am not covered by the insurance plan.

Is this an issue that is governed by FMLA or insurance regulations, and if so - can I return to work for 8 hours per week and still receive coverage (as I would consider myself on intermittant FMLA)?

Or is it a company policy issue that may (or may not) be changed.

Thanks in advance.

ARO

Employer, pursuant to a collective bargaining agreement, agrees to pay each employee who terminates employment on or after age 65, $250 per month in cash. The reason this was implemented was to give the retiree cash to help pay for health insurance premiums, though there is no requirement that the cash be used for such purpose. Are these technically severance payments? Is this arrangement an ERISA plan? If so, is it an ERISA welfare or pension plan? It seems to me that this may well be an ERISA pension plan as it arguably is a program that provides retirement income to employees. Without giving a lot of facts, assume that it does involve an administrative scheme. Do the answers to any of the foregoing questions differ if the employer requires the payments to be used for the payment of health insurance premiums? Any comments would be greatly appreciated.

Does any one here see any problems with doing the following:

{Assumptions: 12/31/2001 plan year end, single employer filing}

1. File Form 5558 on (say) 7/9/2002.

2. File Form 5500 on 7/25/2002 without attaching a copy of the the extension, since filing is timely (by 7/31/2002).

In other words, must the Form 5558 be attached to the Form 5500 filing even if the filing was (eventually) timely?

Hi-

Wondering if anyone knows what website(s) would have pension legislation on them. For example IRC 401(a), Tresasury Regulations, and Rev. Proc.

Thank You

An employee has family coverage with the employer paying 100% of the employee cost and payroll deducting the dependent cost. Premiums increase for the family coverage from 436.65 to over twice that amount. The spouse and child are eligible to be covered under her employers plan but the spouse's TPA claims that a this is not a change in status so she has to wait until her employer's next annual enrollment. Would this not be a change in status and she be able to elect as a late enrollee prior to the annual enrollment? Their claim is that the change in status has to be involuntary. She can elect the coverage for her and the child at a much reduced rate with her employer.

I have a deceased IRA participant that named his family trust as beneficiary. The Successor Trustee does not want to obtain a TID for the trust & wants us to use the 8 SS#'s of the trusts beneficiaries. But at looking at the trust, I do not see a list of the beneficiaries. Can this be done?

A plan terminates a large group of its employees, enough to constitute a partial plan termination and 100% vesting. 2 to 8 months later, the employer hires some of these terminated participants back. Do they return to service 100% vested?

I believe they would since vesting is a protected benefit. However, I have never had a partial plan termination where employees were later rehired prior to distribution of any assets.

Any help would be appreciated.

We may be going out to bid on our BTA coverage. Can anyone give me an idea of the top vendors that write this type of coverage?

if a plan provides an early ret supplement payable until retiree reaches age 62 is that considered part of the accd ben?

in other words, the participant took a lump sum and ultimately the question is should the supplement be part of the lump sum?

and if it is part of accd ben then it would follow that it would be part of lump sum.

gary

When a plan is amended for the GUST 59 1/2 withdrawal provision, do the participants that are 59 1/2 prior to the amendment have to be grandfathered into the more liberal 59 1/2 withdrawal provision? Or in other words does the recordkeeping platform have to provide for a grandfather provision.

Hi,

I work for the State of NJ and I am developing an application for Alternate Benefits Program. The members of this plan are mainly college employees. The Division of Pensions is looking to see if there is an off the shelf software that they can purchase instead of me writing a custom application for them using Oracle Designer. Any help would be appreciated.

What is the correct way to make an amendment to a document using Relius so that there is a record of the previous and current document? Do you know if any of the online classes address this?

Thanks,

Trish

Clinic X, an employer maintaining a self-insured group health plan, has received numerous threats from the estranged husband of a Clinic employee. The husband receives medical treatment at Clinic X, as the spouse of an employee.

The husband's highly volatile behavior has raised safety concerns at the Clinic. The employee has asked to terminate the husband's coverage, due to legal separation. Can the Clinic deny COBRA coverage on the basis of the husband's gross misconduct?

If not, can the CLinic simply refuse to treat the husband and pay for his coverage at another medical facility, for the COBRA period?

Frozen, small employer plan is $1,000,000 underfunded. Plan is subject to PBGC and substantial owner would bear the reduction in allocation if standard termination.

Owner's intention is to keep Plan open and fund over 3-4 years (250,000 - 300,000 a year).

The plan does not have a death benefit other than PVAB.

Can plan purchase life insurance on owner's life? The intention would be that the life insurance would fully fund the plan if owner dies before plan is fully funded. The intention is for the life insurance to be just an asset of the plan and not used to provide additional death benefits.

Does the 100 times monthly benefit rule apply? Does life insurance have to be offered to the other participants? Any other concerns?

Thanks.

Scott