Would like to see some reactions from CA and non-CA recordkeepers to a new CA law which prohibits many uses of social security numbers effective 7/01/02 (w/ various exceptions).

S.B. 168 adds Confidentiality of Social Security Numbers to the California Civil Code. This new section of the CA Civil Code prohibits any person or entity from using an individual's social security number (SSN) in certain ways, specifically:

"... 5. Printing an individual's SSN on any materials that are mailed to the individual, unless state or federal law requires the SSN to be on the document to be mailed. Notwithstanding this provision, applications and forms sent by mail may include social security numbers...."

The actual bill/law can be viewed at: http://www.sen.ca.gov/

I'm just curious as to the reaction of people who routinely mail a multitude of EB materials to CA participants. THANKS

I am still trying to figure out whether my employer's ERISA 403(B) Thrift Plan (with employer match, 100% vested) permits 90-24 transfers. I have taken some trouble to acquire the full Plan (neither my Benefits Specialist nor the Plan Administrator had it to hand, which tells you something ...) but now I'm left with the task of deciphering its provisions. Let me point out that the insurance company's Plan Administrator is completely unhelpful (presumably he doesn't want me to shift money out of the Plan), and our Benefits Specialist is not knowledgeable enough or interested enough to go out and bat for me.

I'm getting mixed signals. I know one person in our office IS making such transfers every pay period, but I don't know whether he was grandfathered in, or whether he was just lucky that nobody was watching too closely when he arranged this entirely through a third party institution. So my question remains, can I do it or can't I? Is it forbidden, or just discouraged by making it so hard for me to get an unequivocal answer? Hence my scrutiny of the Plan.

Part of my confusion lies in the terminology used.

A whole section deals with "eligible rollover distributions" under which it would appear permissible to make transfers from one 403(B) plan to another. The question is, what makes a rollover distribution "eligible"?

"Transfers" are permitted explicitly between vendors, but no mention is made of asset transfers to another institution which is not on the vendor list. This is what I'm trying to effect.

Another two sections deal with "withdrawals" which seem to require a triggering event (age, disability, termination of service, the usual stuff). But when does a withdrawal become a distribution or an asset transfer -- or vice versa?

________

Here are the relevant provisions:

Section 1.8 WITHDRAWAL RESTRICTIONS

The following withdrawal restrictions will apply in addition to restrictions imposed by Sections 8.3 and 8.4 [hardship]:

A Participant may not withdraw amounts allocated to his EMPLOYER CONTRIBUTION ACCOUNTS before he attains 59½ or before he terminates employment with the Employer, unless he is entitled to a Hardship withdrawal pursuant to Section 8.4.

________

Section 8.3 WITHDRAWALS

(a) Requirements

Prior to his Benefit Commencement Date, any Participant may withdraw vested amounts allocated to his Accounts if he makes a written request ... and satisfies the conditions of (1), (2) OR (3) below:

(1) Unless otherwise indicated in Section 1.8, SALARY REDUCTION CONTRIBUTIONS made after 1988 may be withdrawn ... on the following conditions:

(A) attained 59½ of age

(B) disabled

© hardship

(D) terminates employment

(B) and © refer to procedures.

(2) Unless otherwise indicated in Section 1.8 [above], EARNINGS allocated to a Participant's EMPLOYEE CONTRIBUTION ACCOUNTS after 1988 may be withdrawn ... on the following conditions:

(A) attained 59½ of age

(B) disabled

© terminates employment

© Unless otherwise indicated in Section 1.8 [above], ALL OTHER AMOUNTS allocated to a Participant's Accounts may be withdrawn at any time for any reason. [WHAT OTHER AMOUNTS DO THEY MEAN?]

_________

So how is a withdrawal as described above different from an eligible rollover distribution or trustee-to-trustee transfer if I never actually handle the cash?

Would anybody venture a guess as to whether I can effect a 90-24 transfer from this insurance company TSA to a 403(B)7 at another financial institution? And if so, which funds I could transfer (my contributions, my employers' contributions, earnings, other?)

And if I require my "employer's signature", who would this person be? The President/CEO, the HR Director, my direct supervisor who is a VP? I'm trying to maintain a low profile here!

Thank you for your patience. Your help will be greatly appreciated.

Would anyone have a sample claims procedure for an LTD plan they would be willing to share:)

Much thanks

P.S. Do the new claims rules apply to collectively bargainned plans?

1) Does the matching formula on age 50 catch-up contributions have to be the same as the formula on regular deferrals, or can the document define a different match formula for age 50 catch-up than for match on "regular" deferrals?

2) If the match on age 50 catch-up contributions is based on the same formula as the match on the regular deferrals, is the formula applied before or after combining the deferrals? For example, if the formula is 100% of deferrals up to 5% of compensation, and a participant with compensation of $1,000 has $100 in regular deferrals and $100 in age 50 catch-up contributions, is the match on the catch-up contributions zero or $50? Can the plan document define it either way?

3) In a safe-harbor 401(k) plan, are matching contributions on age 50 catch-up contributions subject to the ACP test? If so, how is the ACP test done (include all matching contributions)?

I am getting conflicting definitions of some line items in the FAS 132 exhibit. Can someone tell me what the "Accrued Benefit Liability" is? Is it the greater of the unfunded ABO and the Accrued Pension Cost or is it the Accrued Pension Cost?

Help!:confused:

I am the office manager for a brand new start-up company in the pharmaceutical sales and marketing industry, with 4 employees. I need some advice w/r/t PTO bank versus allotted days for vacation/sick/personal days. Looking forward to recruiting,I would like to match the current trends within the pharmaceutical industry as much as possible. Many pharmaceutical companies close for the Christmas holidays; how does this affect the number of vacation days and company holidays? How is the time accounted for - in the company holidays or are employees forced to use vacation days? What seems to work best?:confused:

ESOP provides for all salary deferrals and matching contributions to be invested in employer stock. Plan intended to provide for the standard 55 and 10 diversification option. Participants are now asking for an election out of stock on a yearly basis. (must have been something in the news lately). Will the plan still remain an ESOP if this yearly election is provided?

1. I assume the percentage of stock held by the ESOP will have to be monitored to ensure compliance with the primarily invested in employer stock requirement. Let's assume more than 50% of assets will always remain in employer stock.

2. It appears that what is being done is making the 55 and 10 diversification option more liberal. I previously asked a question re: this and was told it can be done but there may be securities concerns. I think the right to demand employer securites would apply to the shares that are diversified prior to a particiipant attaining 55 and 10.

What am I missing? Any comments.

In 1998, I converted my traditional IRA to a RothIRA. The value at that time was $400000 and I elected the 5 year option. I subsequently filed and paid the taxes due on my 1998 and 1999 returns..still have to file the rest. The value of my investments has now dropped to $125000 and I dont have the cash to pay the remaining taxes. What are my options here? Thanks.

It's my understanding that school districts, as quasi-government entities, are exempt from ERISA Title I, but not from Title II.

It is also my understanding that in order for ANY 403(B) annuity contract, or 403(B)(7) custodial account to be a "valid" contract, it must contain ERISA's anti-alienation language.

Finally, it's my understanding that when Congress passed the Retirement Equity Act of 1984, establishing QDROs, the intent was to provide an exception to the anti-alienation provisions of both ERISA and the Code, since the antialienation provision and ERISA's broad preemption provisions conflicted with state laws designed to ensure that individuals satisfy their family support obligations.

So help me with this logic. If the only Code Sections that a district 403(B) plan must adhere to is anti-alienation...

AND

if the concept of QDRO is an exception to anti-alienation

THEN

I can't see how school district 403(B) plans exempt from QDROs?

Second question, if the answer is that the district must adhere to REA QDROs, due to the anti-alienation exception, what else under REA must non-Title I plans adhere to?

I can think of spousal consent on beneficiary designations or loan consent as additional inclusions, since without it, what would stop one spouse from naming a non-spouse beneficiary (let's assume it's not the kids or a trust) or taking a maximum loan from the plan prior to filing for divorce?

Replies welcomed...

The California State Senate Appropriations Committee passed Senator Jack Scott's bill to make California Revenue and Taxation Code conform to the retirement provisions of the Federal Internal Revenue Code amended by EGTRRA:

http://www.pensioninfo.org/2002_01_01_acv.html#9158669

I have a Cross Tested PS plan that defines compensation for allocation purposes as comp while a participant. The plan is also Top Heavy. The Top Heavy definition of comp is for the entire plan year. If a partipant's Top Heavy allocation is greater than his plan formula allocation, which compensation is used for testing?? Thanks.

My emplyer lost my enrolment form for our cafeteria plan, they made no attempts to track who had receaved a form much less who had turned it in. They claim I have lost the benifit because of this. lOTS OF PEOPLE NEVER TURNED IN THE FORM several peop0le do not even know it was offored.

I had trouble just getting a form human Resourse handed the form to a supervisor who threw them on a counter 4 days latter when I came to work they were all gone. HR said they had no extra and I needed to track down one on my own. I did filled it out made a photo copy and turned it in.

My election was 2500. so my tax savings would be $700. 2 weeks pay. this is real money to me.

HR says its my FAULT AND I LOST THE BENIFIT.

I have a phot copy for the form I turned in. what can I

I submited a enrolment form for my employers cafeteria plan, for the maximum withholding of 2,500. It took me over a week to find a coworker who could give me a form. Human Resourses just gave them to a suppervisor who left them on a table 4 days later when I came to work they were gone and HR refused to give me a copy said they " didn't have enough to give them to every one who had lost them" I finally found a form, photo copied it and turned it in weeks before the deadline.

My employer lost it and never bothered to contact me. Never bothered to check on whos they got back and whos they didn't. or any one elses.

They now say I am not elegiable for the beifit even though I have a photo copy of the form they lost.

My tax savings on 2,500 witholding would be approximently $700. This is over 2 weeks pay for me. Real money. what can I do.

They form said it must be returned even if we were declining the benifit. We were repeatedly told they would hunt down any one who failed to turn it a form. That they leagely had to get a form back one way or another from us. Now HR says law changed and its "Gloria's fault"

I know this sounds lame, but I don't know how I begin to open an R/IRA account. Is this something I do at a bank? Or is this like a Savings Bond, something the Government sponsors and I contact them? How does it (my money) earn interest? Is there a fee involved? I want to start, it's long past the time I've begun to save (I'm in my late 40s), but I don't know how or where to begin. Thanks in advance for any guidance you can give me! ..Zoe

PS I've read many of the other replies (mostly by John G, thank you ) but the wrinkle is that I am on LTD, and although I am very lucky to have this, it is not something I can count on, as it is reviewed regularly, and the insurance company is basically in the business to *not* give out money if it can avoid doing so -- therefore I want to take advantage of this while I do get LTD, but with a look to the future where I may have only my SSDI as income if my insurance company does not renew my policy. Thanks again!

I have an employee who changed shifts ;i.e. from day to night

He elected $ 5K for his dependent care for 2002

As a result of the shift change he doesn't need a daycare provider for his children

Can he cease daycare deductions?

Thanks:confused:

I need some guidence because I'm lost at this point.

66% of Company A's partners in an LLC decide to start a new business (Company B also an LLC) effective 1/1/02 and resign from Company A. Company B's partners (formarly of Company A) establish a 401(k) Plan.

Company B says that this is a spin-off Plan and participants do not forfeit their non-vested account balances (Company B also recognizes service from Co. A for Vesting). The new fund custodian wants a transfer of all the participant account balances under Company B (probably for commission, etc.)

Company A says the Partners resigned, and as such, are not subject to rights from a spin-off (i.e. they will forfeit non-vested account balances). Additionally, Company A says as terminated participants, they have the protected benefits for receiving their account balances (lump-sum/rollover).

Of course, the "Redemption Agreement" says nothing about the Plan.

Any suggestions as to who is correct?

Has the IRS opened its determination letter process to sponsors of cash balance plans? Thanks. Ed

ERISA 403(B) arrangement is invested entirely in a group annuity contract (GAC). The arrangement includes salary deferrals and employer matching contributions

Employer wants to restate document and transfer to a custodial account environment (assume there are no issues related to withdrawal from GAC).

Given that in-service withdrawals of matching contributions is allowed under the GAC (and under the existing plan), but is not permitted under a custodial account (see 403(B)(7)(A)(ii)) -- is there any way to move to the custodial account environment without causing a cutback of the in-service withdrawal feature, as it applies to matching contributions, rollovers, etc.

Your comments are appreciated.

I understand that if a controlled group maintains seperate plans, that for HCEs, the ADR is run combining compensation and deferrals from both plans. However, what about NHCEs? It doesn't appear that we combine deferrals. Does that also mean that we do NOT combine compensation. HELP.

If a Dependent care Reimbursement Account Plan is discriminatory (fails the 55% utliziation test) the amounts received as reimbursements under the plan are taxable to HCE's.

If, for example, the plan is discriminatory for the 2001 plan year, and the HCE has expenses that are reimbursed during the run off period in 2002, are those amounts taxed in 2001 or 2002?

It seems to me that the impact of failing the test is that 129 does not apply to the HCE's. Therefore reimbursements for dependent care are taxable when paid. But can the employer use the same rule that is available for reporting dependent care expenses on Form W-2 and treat the estimated reimbursements as taxable income in 2001 (if the employer is comfortable that the employee will in fact have the expenses)?

Thanks-

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