The U.S. Chamber of Commerce needs more volunteers to participate in its survey of employee benefits. You can help by volunteering to participate - simply send an e-mail to ebstudy@uschamber.com indicating whether you prefer to receive the survey by fax or e-mail. We will send the survey to out to you ASAP.

The survey covers a wide variety of benefits including the number of vacation days given, specifics on what your health plan covers, who is eligible for stock options. The survey is to be completed based on your 1999 year-end figures, either fiscal or calendar '99 ... whichever is easier for you.

The revised deadline for completion of the survey is July 31, 2000. As a survey participant, you will receive a FREE copy of the report (a $75 value) when it is published in the Fall.

We seem to be having a problem with non calender year plans

since the limit is now 10,500 instead of 10,000. Quantech is stopping the person at 10,000 instead of letting them go up to 10,500. I can see a couple of ways to catch it. We change the override in plan specs to 10,500 after the year changes, or keep the apply limits button on in the contribution transaction and when someones deferrals don't get applied, it gets researched.

Both ways are alittle to manual for me. Anyone have any other suggestions?

What is a tarsap? the advantages and disadvantages of using this form of executive compensation.

I am of the understanding that an ERISA covered 403(B) plan (with employer and employee monies) that is filing a Form 5500 (albeit with very little info) is still required to provide a Summary Annual Report. If so, what financial info should go in the SAR given that no financial info is required to be provided in the Form 5500. My particular case involves a 403(B)(7) custodial account.

Pete

I've got a case where the institution has a fiscal year end of 6/30. We check 415 limits for the fiscal year.

As I understand it, we must also check 415 limits on a calendar year basis for exclusion allowance purposes.

The question is, how to determine the annual additions. There's a 403(B) with 5% match and an integrated 5% + 10% 401(a) plan. The Plans state that contributions are credited on the last day of the Plan Year. In practice, contributions are being made monthly to eligible employees.

So, for the employees calendar 415 calc, would you add up contributions made during the calendar year, or the contributions creditted on 6/30, plus the deferral for the calendar year, or something else.

Thats in advance.

Does anyone know of a custodian who will allow investments in tax certificates and/or real estate!

Can A Governmental Agency eliminate the in-service withdrawal feature they currently have for after-tax employee contribution accounts? They are no longer going to allow the employees to contribute on an after-tax basis and plan to freeze the after-tax accounts.

Currently I am working on a project that involves employee retention.

The focus is employee work/life benefits. When I say work/life benefits, I am referring to benefits that are not insurance related, such flex-hours, job sharing, summer hours, things of this sort.

I am seeking ideas that you may have @ your company or that you may of heard of or experienced @ another or even ideas that you would like to see implemented.

Any suggestions or idea.

Thanks in advance for your ideas?

Do non-412 plans need to complete the Schedule R? It seems like all you are doing is reporting the EIN under which payments were made on line 2. There is nothing to report in Line 1 and nothing to report in Line 3. What are other preparers doing?

How do you design a bonus plan for non-exempt employees without having to include the bonus payments as part of their regular pay as required by the FLSA?

A plan sponsor has an ESOP plan which is failing the ratio percentage test for 410(B) minimum coverage. The plan sponsor also has a 401(k) plan.

When doing the average benefit percentage test:

1.Do the 2 plans have to be aggregated? (I have read in some places that ESOPs and union plans do not need to be aggregated, but other sources seem to indicate that ESOPs do need to be aggregated - has this been changed?)

2. What employees can be excluded? (Do all employees that have met the eligibility requirements for either plan have to be included, or is it possible to have some type of statutory exclusion of employees, like excluding employees under age 21 or less than a year of service?)

[Edited by John A on 07-13-2000 at 09:41 AM]

Has anyone given any thoughts or seen any articles on how the new law allowing electronic signatures will apply to various employee/spouse signature requirements under retirement plans?

if a participant receives treatmet from a non-medical person, (such as acupuncture)does the person providing the service have to be licensed or certified to make the expenses eligible for re-imbursement?

An employee has an IRS lien against him. He has $$$ in a NQDC plan. He dies and the NQDC plan has a contractual obligation to pay the widow a death benefit. Is the payment to the widow subject to the IRS lien? Is there any authority? Thanks.

Does anyone have any information on so call "Flip Flop Funding"? It has to do with the timing of deposits if the sponser maintains both a DB and a DC plan in order to avoid the 25% of comp limit.

Have a client with oriental rugs and classic automobiles as plan assets. These assets have not, in my opinion, been properly appraised. The employer wants to move to segregated accounts for each participant. The HCE wants to take all of the rugs and cars into his account instead of liquidating them. I say he should liquidate these assets then create the segregated accounts. Any thoughts, comments or DOL/IRS cites would be appreciated.

What about real estate in a segregated account? Any problems? This ER has actually purchased property at tax auctions with the intent that the property owners will repay the real estate taxes and the Plan Sponsor will never actually take posession of the property. One piece of property is subject to $2M in liens. I'm really concerned here.

I am involved with the merger of two multiemployer plans;one plan is administered by my company and the other is not; does anyone have a checklist of items that should be requested from the firm that has been administering the other plan ( this plan is merging into our plan); for example, issues regarding withdrawal liability I would think would be addressed by the other firm ? Are there other items that should be requested ?

I have a Section 125 plan filer. The plan allows participants to defer a portion of their salary to cover 25% of medical insurance premiums not paid for by the plan sponsor. The Schedule F filing is straight forward. However, I am not certain about the 5500 filing itself.

The plan had about 140 participants at the beginning of 1999. The sponsor remits all premiums (the 75% paid by the sponsor and the 25% paid by the participant) directly to the insurance carrier thus, an unfunded plan. No VEBA exists. If I understand the 5500 directions properly, I need to file two (2) 5500's since the plan had greater than 100 participants at the beginning of the plan year. One for the premiums covered under the 125 plan (including Sch F) and one for the 75% paid for by the sponsor - yes?

Are there any restriction on whether or not an LLC. can participate in a 125 or 401(k)?

[Edited by Scott Fielding on 07-17-2000 at 03:56 PM]

In order to be considered a Key employee for the purposes of Section 125 nondiscrimination testing, does an employee need to meet ALL FOUR or ONLY ONE of the following criteria:

1. Officer of the employer . . .

2. >5% owner . . .

3. >1% owner w/annl comp >$150,000 . . .

4. one of the top-ten employee-owners. . .