An employer automatically enrolls it employees in its self-funded group health plan. The plan is a bundled plan that offers health, dental, and vision coverage, and employees are not charged a premium. Now that employers no longer are required to offer core coverage only, can the employer charge one premium for COBRA coverage. Would the answer change if the plan was not bundled (i.e., separate plan documents, etc.)? My thought is that one premium could be charged, since employees and actives are treated the same (i.e., they have automatic coverage in all of the plans).

Any thoughts are appreciated (as there is no clear DOL/IRS guidance on this issue)?

If a provider is ready to hold on to the investments as well as do the administration work but are not ready to be trustees of the plan are they considered to be a bundled service provider or are they classified as a TPA.

I am trying to find out whether fiduciary responsibilities between Bundled Administration and TPA service differ?

I understand the type of service each one performs but what distinguishes a Bundled Service Provider from a TPA?

If a provider is ready to hold on to the investments as well as do the administration work but are not ready to be trustees of the plan are they considered to be a bundled service provider or are they classified as a TPA.

I am trying to find out whether fiduciary responsibilities between Bundled Administration and TPA service differ?

I understand the type of service each one performs but what distinguishes a Bundled Service Provider from a TPA.

Is it possible (allowable) to change the 12 month determination period for COBRA rates? We want to delink the COBRA determ period from the annual renewal of self-funded plan. Currently, plan administration renewal date is the same as the COBRA renewal date. This is causing way too much confusion with setting the premium for the 12 month period. Our thought is to extend the current 12 month rate to 14 months initially then renew again at 12 months. This most likely will be beneficial to the QB as rates inevitably increase. Could anyone tell me what reg. would allow or disallow this type of change in dates.

How do plans handle tips, i.e., amounts received for personal service at restaurants, beauty shops, gymns, barber shops, etc. for pensionable income purposes? My impression is that they are includable in 415 income and therefore cannot be left out of pensionable income.

Client has a 403(B) Plan. I need to know whather this issue can be corrected via TVC program. Plan document provides that the employer shall make non-elective contributions for each participant of 11% of compensation. In reality, the employees were given a choice of taking 11% in cash or receving contribution. most employees took cash. What, if any, is the problem with this? what is correction method?

Does anyone know if the SAR distribution date has also automatically been extened 2.5 months to December 15, 2000 for a calendar year plan? I know that if I had filed for an extension I would also be granted an extension on the SAR, but since the IRS automatically extended the 5500 due date to 10/15 for calendar year plans, do I also have an extension for the SAR.

I assume that I do, but I couldn't find anything official.

What is the best way of correcting the following?

Due to a payroll service not having the definition of compensation set properly, 401(k) plan deferral amounts and associated match are incorrect (too small)over a few months. Some of the participants that had incorrect amounts withheld have terminated, others are still active. Would APRSC be acceptable, or is VCR better in this case? Can the active participants be "corrected" by withholding additional amounts out of future compensation as a "catch-up." Does the plan sponsor need to correct this by making QNECS equal to all shorted 401(k) and match amounts plus earnings? What's the best way to get this corrected?

The plan document provides that forfeitures (of ER Matching contributions) will reduce ER contributions. The ER, however, has not done this and forfeitures have built to a considerable sum, $50,000. The ER now wants to use these forfeitures to pay plan expenses incurred when transferring assets from one investment company to another and amending the plan document (not SBJPA amendments).

This doesn't sit right with me, but I'm not finding any specific prohibition. The plan document provides that administration expenses may be paid from the trust. My concern is also that the ER has not properly handled the forfeitures in prior years.

Any suggestions?

I know that premiums paid for a whole life policy within a DC plan cannot exceed 50% of the contributions to the participant. Is this rule applied on a cumulative basis (contributions vs. premiums since plans inception) or a yearly basis. My client generally makes the maximum contribution, but this year only paid premiums.

We have some clients who are University Professors and participate in a

403(b) plan. Several of them wish to purchase life insurance with 403(b)

funds inside the plan. They have been told this is not possible. However,

by hearsay, they have been told that with a schedule "c" they can establish

a qualified plan and purchase life insurance inside that plan. Further it

is their understanding that funds can be transferred from one qualified plan

to another without penalty or taxes due, and within the schedule "c"

qualified plan they can purchase life insurance. Is this true. Can you be

of any help or point me in a productive direction.

John Wekselblatt

"wex"

1095 Market St., # 701

San Francisco, CA 94103

http://www.zpub.com/wex/

I'm currently work for a technology company and I have been delegated the task of researching the career progression of a "junior systems analyst". I am trying to research the promotional structure (aside from salary). For example, what are they promoted to from a "junior systems analyst"? How long should they be a "jsa" before they get promoted? I have tried extensively to find information on this topic but nothing seems to be out there. Any information or suggestions would be greatly appreciated.

I thought I saw somewhere (now I can't find it) that the original,not a photocopy, of the machine print version of F5500 should be submitted to DOL. Does anyone know if this is correct?

I am separating from service from a Massachusetts college which has a 457 Plan. I've heard that there is a bill in Congress to make 457 plans portable to 403b Plans. Does anyone know if this is going to pass?

In an article in the New York Times magazine on July 23, 2000, the author argues that genetic discrimination by employers and insurers is rational and shouldn't be illegal.

"Genetic testing is not a reversal of the principle behind insurance; it's just an elaboration of it," says Andrew Sullivan, in his Counterculture column.

Here's the link to the New York Times site (free registration required); not sure how long they'll keep the content online: http://www.benefitslink.com/links/20000724...24-006319.shtml

Your comments? Post 'em here!

We received a child support order that includes an order to enroll the children in the health plan.

If the employee did not sign up for health insurance for himself, do we just enroll the children, or enroll the employee, also?

Is anyone familiar with so-called "condition of employment" employee contributions to 403(B) plans? I'm seeing these for the first time. The proposed employee contribution is mandatory and is pre-tax. I found the following reference in the audit guidelines, which suggests they're permissible but I don't understand on what basis the contributions are pre-tax. ("Elective deferrals do not include elective contributions made pursuant to a one-time irrevocable election that is made at initial eligibility to participate in the salary reduction agreement, or pursuant to certain other one-time irrevocable elections to be specified in regulations, or pre-tax contributions made as a condition of employment.") It should be noted that this is NOT a governmental employer, so even if 414(h)(2) applies to 403(B) arrangements, it wouldn't apply to this employer.

Assuming we can get past state wage withholding statutes, what are the tax issues? I understand that these are not salary reduction contributions, but on what basis are they pre-tax? General constructive receipt principles (i.e., no opportunity to receive as cash)? If there are two different levels of employee contributions based on employment classification, how do you test for nondiscrimination? What if there is an employer "match"? Do you use Notice 89-23?

A participant retires with:

Cash Balance Account = 200,000

Final Salary = 125,000

Account Conversion factor = 10

He has option of receiving an annuity of 200,000/10 or 20,000 per year,

or

He can get 125,000 as a lump sum (can receive up to final salary as lump sum) and the remaining 75,000 as an annuity of 75,000/10 or 7,500 per year. This is the desired option, so analysis below is based on this option.

There seems to be issues w/r/t not addressing 417(e). It appears that 417(e) must be addressed in some way. The two ways I see are:

1. convert account balance to an annuity, compute 417(e) lump sum and if higher than account balance (say it's 250,000), let that be the basis to compute the annuity portion in addition to the lump sum of 125,000. i.e. an annuity based on additional 125,000 or 12,500 per year.

2. compute an equivalent annuity from the 125,000 lump sum received (using 417(e)) and offset it from the gross annuity (based on entire CBA). If this is greater than the annuity portion of 7,500, than this is what the participant should get.

Any comments on this?

I have a Roth IRA. Suppose all the taxes are paid and the 5 year period has been met. My wife is the primary beneficiary and my children are secondary. If, upon my death, my wife disclaims the Roth IRA can my children take distribution over a lifetime? I think I understand that the age of the oldest child sets the definition of a lifetime.

what is the rule for family attribution pertaining to son in law or daughter in laws over 20. is it that if the parent owns more than 50% of the voting stock, then they own the son in law or daughter in laws stock by attribution?