I'd appreciate views on a tricky situation

Underfunded DB plan (85% CL basis) restricts HCEs from (unbonded/secured) lump sum distributions as required. Principal owner gets divorced. 100% of owner's benefits assigned to ex-spouse.

Is alternate payee's benefit subject to same lump sum restrictions as owner was?

Couple of questions here: Is the ex-spouse an HCE, and what role does the QDRO assignment play? If not for the QDRO, the plan would not have allowed unrestriced payment of lump sum.

Corp P (parent) owns 100% of Corp S (subsidiary), an obvious controlled group. Corp P has a retirement plan.... Corp S has no retirement plan. In which of the following type plans of Corp P may the Corp P's "plan document" exclude employees of Corp S from eligibility in P's plan ?

1) Standardized profit sharing plan

2) NonStandardized profit sharing plan

3) Standardized profit sharing plan -- with 401(k) feature

4) NonStandardized profit sharing plan - with 401(k) feature

I had heard that if I work for an employer for at least 5 years and retire anytime after age 60, I can keep COBRA until eligible for Medicare (age 65). True? If so, is it in writing anywhere so I can show my employer? Thanks.

Suppose an employee is hired January 1 and receives her first paycheck on January 15 for the period January 1 through January 12. Further, the employer offers the employee the option of paying for health insurance coverage with pre-tax dollars through a cafeteria plan. The employee has thirty (30) days from her date of hire to elect to participate in the plan. As the plan is currently administered, if our employee elects to pay for health insurance coverage with pre-tax dollars on January 20, the election is retroactively effective to January 1. The premium cost that should have been deducted from the employee's January 12 paycheck is spread over the employee's remaining paychecks during that same year.

Is there a constructive receipt problem? In other words, because under Proposed Regulation 1.125-1, Q&A-6, a salary reduction agreement must relate to compensation that has not been actually or constructively received by the participant and does not become currently available to the participant, since the participant's election is retroactive, is the participant in constructive receipt of the premiums that are used to pay for the retroactive coverage which were not deducted from her January 12 paycheck?

Can anybody tell me where I can get a copy of the 1983 Group Annuity Mortality Table 50% male 50% female. Prefferably on the web.

Thanks ina advance.

Anyone know if Lafayette Life Insurance Co. still sponsors a target benefit pension plan document?

Our firm, a TPA, has a large 401(k) Plan for a Plan Sponsor who has a high turnover rate. There are usually 800-1000 employment termination distributions each quarter. Terminated employees send us the Request for Withdrawal form, then we instruct the trustee to issue the check. The problem we are having is the volume of phone calls and correspondence in this process. Used to be, both our firm and the Plan Sponsor received hundreds of calls each quarter from people asking if we received their Request for Withdrawal form, then those same people would later call back to find out exactly when their check was going in the mail. We decided to acknowledge each Request for Withdrawal form by mail, and not accept phone calls asking if we received their form, Of course that now means we send out hundreds of acknowledgement letters. And people still call wanting to know if their check has been mailed, even though the acknowledgement letters tells them they should have it within 14 days.

There are root causes here that we as TPA can't do anything about, like the high turnover, and the young, transient workforce who for a variety of reasons are distrustful of the process when they leave the company. We were wondering how others out there handle this process. We have a website and an automated phone system and have tried to think how we could use that to help, but haven't come up with any brilliant ideas.

Parent corp owns 100% of its Subsidiary corp. Both corporations offer their employees medical coverage through pre-tax withholdings. Neither of the corporations offer fully insured coverage. Both corporations have only self-insured medical plans (with employees contributing only a small $amount through pre-tax withholdings). Medical providers file claims directly to the corporate employer and then the corporate employer pays 100% of those claims from its corporate general assets. The pre-tax withholdings from employees is only a nominal $amount.

Parent corp has over 100 participants in its medical plan and therefore the parent's "welfare benefit medical plan" is required to file a Form 5500 each year and have the plan audited by a CPA... plus the parent must file a "fringe benefit Form 5500 & Schedule F", because of pre-tax withholdings.

The subsidiary has less than 100 participants. I realize that the subsudiary must file a "fringe benefit Form 5500 and Schedule F", because of pre-tax withholdings.

MY QUESTION:

Does the Subsidiary's "welfare benefit plan" have to file a Form 5500 just because its parent is required to ??

Can a profit sharing plan allow investment in tracking stock, that is "stock" that is valued based only on a portion of the employer's business? What are the issues involved here? Does anyone have any ideas about places to look for information on this issue?

When setting a Normal Retirement Date (NRD) in a DC Plan (or any type of Plan for that matter), can more than 5 YOS be used? For example, can NRD be defined as age 62 with 26 YOS?

I have not previously encountered any plans requiring more than 5 YOS. The document of a prospective client that I am looking at shows the above NRD provisions. However, the document is signed in June, 1991, and I am suspecting it is a pre-TRA 86 document. No determination has been provided (yet).

Thanks for any comments.

here's a tip:

modify the summary of account report as follows:

add database table PLANSUSPBAL

add the field BEGBALAMT

This will give you the amount in suspense as of the beginning of the plan year.

set up a formula to add to the beg balance so you will have beg bal with suspense.

you can now tie out to last year's report. The balances will match.

If a Plan changes its eligibility requirement from one year of service to two years of service (for an employer discretionary contribution that is 100% vested) can this apply to current employees who have not yet become participants (especially the ones who have completed a year of service and are just waiting to enter the Plan)? Also, could it apply prospectively to "unenroll" participants who do not yet have two years of service?

I was recently laid off from a Minnesota company that has been in business for 6 months and employed 7 people. Are they subject to COBRA laws? Thank-you

PLEASE HELP!! I had a fourth surgery in Jan 01 for an injury sustained at work in '94. Work Comp expired three years ago. I have the same attending surgeon for all four surgeries. I have traumatic arthritis to the main joint in my right foot. It caused slow destruction of the joint. The last (latest)alternative was to grind both bones (inside of main joint where bones meet cartilage that had disappeared with damage)and insert a new product. The product is like putty which remains fluid until the bone cells literally grow across it ultimately, totally fusing the joint. Therefore, totally preventing any additional flexibility/continued irritation,etc. Two weeks after surgery I returned to work. I told my physician I felt like I could go back. He understands I am my only support. My STD carrier paid for 1 wk. coverage. I could not make it through the night. I called the STD carrier the next day and explained the situation. I told them I felt bad all over/felt feverish/had shooting pain in the operative bone and had called my Dr. and informed him of the same. Dr. stated to remain off work until he decided all things were good to go. STD carrier refused to pay further based on lack of objectionable findings from Dr.(pain cannot be quantified). Dr. stated pain was caused by previous surgery and needed more time to heal. I am caught in a word battle b/w my Dr. and the inhouse STD carrier Dr. What can I do to retreive 7wks lost wages. Have been back at work for about a month now? I feel like my integrity is being questioned. I'm certainly not a slacker. I love my job. Have been at it for 7 years. My credit has suffered immensely. I have been financially drained of savings. Does anyone know of a similar situation/court case? Feeling great otherwise. Appreciate any help/experience anyone has had with this issue.

Rgds,

Miss Gail

I converted my IRA into Roth IRA in 1998 using the 4 year income tax payment schedule. I am not 59 ½ and the funds have not been held by Fidelity for 5 years. My questions concern the return of my already taxed contributions (not earnings):

[i am asking these questions because I need the funds and my son will be applying for college financial aid (fafsa government form) which uses the formula concerning: “Untaxed portions of pensions from IRS Form 1040-lines (15a minus 15b) + (16a minus 16b)”]

.

What IRS tax form will Fidelity use to show my withdrawal of taxed contributions?

On the 1040, what line/number/letter will these withdrawals be posted?

Thanks.

Unfortunately, I did not realize the deadline for submitting my reimbursement request was March 31. I stupidly thought that instead of making a number of claims during 2000 that it would be more efficient to accummulate them as I do for my tax return and do them simultaneously. When I asked my HR manager for the necessary form - there was no mention by the manager nor the form of the deadline. I'm told it's in the Plan Document and I'm not disputing that. However, over $1000 will be lost here if there truly is no remedy available. Please help!

Our firm has a cafeteria plan with the following options:

POP - HCE's, along with their spouses and dependents are fully covered by the employer, thus they do not use this portion of the plan.

MFSA - available to HCE's and NHCE's.

Dep Care FSA - available to HCE's and NHCE's.

Do we need to meet the 25% to Keys on the total, as well as test the DCFSA for the 55%? Is there individual testing for the MFSA? Is the POP okay since no HCE's use it?

JGreen

I recall a number of months ago talk about increasing the maximum contribution to IRA's to near $5000 or higher. Has there been any further discussion or steps taken to pass this idea???

thanks, darren

Does anyone know the final date for compliance with COBRA under the section 125 medical expense reimbursement? Specifically

1) Notification for participants upon enrollment of their right to COBRA.

2) Notification of COBRA eligibility for Section 125 medical reimbursement account participants with funds remaining in their accounts upon termination of employment.

3) Deadline for modifying the SPDs regarding COBRA rights.

In the approval process of a hardship withdrawal under the safe-harbor provisions, can a plan sponsor deny the hardship if the amount available does not satisfy or meet the financial need? For example, college tuition is $7,000 and amount available is only $1,500. The participant has already proven that there is no other source of funding, so do you still approve the $1,500 although it is not enough? The regulations are clear that the amount cannot exceed the need, but does the amount have to meet the need?