Priscription Drug Coverage is increasing in cost at an alarming rate. There are many new programs that have been started to try to control these rising costs. Formulary Management, Cost Shifting, Prior Authorization for high dollar drugs. I would like to start this message board to share and identify new and successful programs to control costs. If you have any suggestions, or questions, please contribute

If I understand the instructions for Schedule T and Rev. Proc. 93-42 correctly, a plan that filed a 1997 5500-C that did not apply the substantiation guidelines on line 21 must file a Schedule T for 1999. Afterwards, one wouldn't be needed until 2002. Is this correct? Thanks for all help.

If a company is using a POP and wants to modify it to include flexible spending accounts, DCAP, etc, can it reopen the election date for these new benefits. Or, will the employees have to wait for the next election opportunity?

Can a 2 person Non-Profit have a 401(k) Plan? And does is matter if both are HCE's?

I would be interested in talking to anyone who is looking for ways to decrease the rising costs of health care benefits for their employees. I work for a health promotion company called Summex, and we can significantly reduce these costs - which I am sure you are aware - are expected to increase another 10-12 percent this year. We provide tools and programs used to measure and reduce the high health risk level of your employees. Our all-inclusive employee package uses our Health Monitor health risk assessment to first measure the risk factors of your population. Next, we implement interventions to reduce that risk level -- tools such as telephone calls from our health educators, home-mailed self education, medical self-care books, and stage of readiness for change based information. Individual reports go out to the employee, group reports to the employer, and monthly activity reports are generated to track all interventions and results. ALL employee information is guaranteed CONFIDENTIAL.

Many employers use a health risk assessment tool, but unless you take the next step - targeting and reducing those high risk factors in your employees, nothing is really gained. Innovative employers are putting their wellness infrastructure in place now - and are of the "investment mentality" when thinking of their employees' health. A healthy employee is more productive, absent less often, have fewer accidents, and are more energetic.

Many of you may know our Chairman, Larry Chapman. Larry writes for the American Journal of Health Promotion and the Art of Health Promotion, and he is highly regarded for his ability to put successful, cost saving programs in place for corporations throughout the United States.

If you are interested in learning more about what health promotion can do for your company, please mail me. I'd also like to invite you to visit our website at www.summex.com, and check out our online HRA at www.summexhealthmonitor.com.

Thoughts or discussion? Post a reply and I will answer for everyone to read on this board too!

Thanks!!! Kathy

We have several employees who have submitted reimbursement requests for significant $ for travel-related medical expenses (i.e. traveling to dr's appointment by car). Obviously the only expenses are wear and tear on car and gas!

Is there any special requirement regarding this type of reimbursement? What type of proof, if any, is required (i.e. proof of appointments, etc.)?

OR should we as the ER not be concerned with proof and place the burden of proof on the EEs in the event that the IRS comes knockin'?

Any additional thoughts would be appreciated. Thank you for your assistance.

I'm trying to determine the appropriate correction technique for an improper distribution. In my case, the employer treated employees as terminating employment when they were transferred to another division/classification that was not eligible to participate in plan. There does not seem to be any doubt that these participates did not have a true termination of employment and therefore, should not have received a distribution. Does anyone know what the proper correction technique would be? I'm sure we can start by requesting the participants to return the distribution with interest perhaps. However, I suspect that many of them may refuse. If so, then what can the plan sponsor do? Sue the participant? I think I read somewhere that the IRS has treated the plan as being disqualified as to the participants who don't return the distribution.

Kurt

A controlled group has an ownership change so that it is no longer a controlled group. The transition rules for 410(B) should apply as this is a disposition.

How is the plan affected if this is a prototype document? Is there a transition period to complete the plan spin off and establishment of a separate plan, or is the plan automatically a multiple employer plan on the date it ceased to be a controlled group?

Any cites are appreciated.

third party administrator will charge $50 to calculate rmd, can this expense be charged to the participant rather than treated as a plan-level expense?

A bank holding company sponsors a profit sharing plan. Each of the six participating employers elect to contribute an amount from 0% to 15% of participants' compensation. While the employer will cross-test under 1.401(a)(4)-8, how does the plan satisfy 410(B)? I seem to recall something that said a plan with more than one allocation rate would be treated as separate plans. Or does the plan "automatically" satisft 410(B) and the stumbling block would be 401(a)(4)? Any advice? Thanks. Ed

Thank you for your response. I have a further question. If I convert from a 403b to an IRA then to a Roth IRA is there a minimum amount of time that the money must stay in the traditional IRA before I convert it to a Roth?

A cash bal plan defines AB by saying that the account is projected to age 65 at 8%. Then converting the amount to an annuity that is increased each year by the rate of 8%. i.e. a COLA of 8%/yr.

The Plan says if a lump sum is chosen, then the account bal at termination is projected at App Int Rate (PBGC rate) and the COLA is the App Int Rate.

Can they change the projecting interest rate and the COLA just because the lump sum option is chosen?

To me it doesn't seem right. In other words it appears that they are changing the AB, which seems that it s/b the same weather the pension is an annuity or a lump sum payment

Any thoughts?

I'd be interesting in hearing real-life experiences with "bridge" loans on termination of a 401(k) plan (i.e., to avoid loan offset, a short-term loan is made to pay off the plan loan, the account is rolled to a different plan, and a loan from the second plan pays off the short-term bridge loan). If you've used it, were participants advised to find their own outside source of funds, or did an employer lend the funds for the "bridge" loan? If the latter, did you have collection problems? DOL or IRS problems? What if participants with loans are disproportionately HCEs? Did you consider simply grossing up regular comp for the tax hit? Any other problems/issues?

Thanks for your comments.

I'd be interesting in hearing real-life experiences with "bridge" loans on termination of a 401(k) plan (i.e., to avoid loan offset, a short-term loan is made to pay off the plan loan, the account is rolled to a different plan, and a loan from the second plan pays off the short-term bridge loan). If you've used it, were participants advised to find their own outside source of funds, or did an employer lend the funds for the "bridge" loan? If the latter, did you have collection problems? DOL or IRS problems? What if participants with loans are disproportionately HCEs? Did you consider simply grossing up regular comp for the tax hit? Any other problems/issues?

Thanks for your comments.

A profit sharing plan has several adopting employers. Most of the employers are physicians where the physician is the only employee. All of the other employees are employees of another adopting employer. It seems to me that each adopting employer (Physician) has a deduction limit of 15% of eligible employee compensation. If the only employee is the physician, the limit would be 15% of $160,000. The Plan, however, has an integrated allocation formula that allocates an amount > 15% of $160,000 to each physician. Hasn't the physician's 404 limit been exceeded?

Other than revocation, is there any procedure to correct an error on an IRC Section 83(B) election if you are still within the 30-day window for making the election?

I have a 401(k) plan that uses american funds within the plan. We used to use met life and all the employees had contracts there. We kept our contracts with met life but started putting new money in american funds. I want to roll my funds that are in american funds to the met life contract. can I do this? The met life contract is a individual retirement annuity and the american funds money is mutual funds.

I am considering converting my 403b to a Roth IRA. Can I do this directly or must I first covert it to a regular IRA then to a Roth.

A controlled group has an ownership change so that it is no longer a controlled group. The transition rules for 410(B) should apply as this is a disposition.

How is the plan affected if this is a prototype document? Is there a transition period to complete the plan spin off and establishment of a separate plan, or is the plan automatically a multiple employer plan on the date it ceased to be a controlled group?

Any cites are appreciated.

[This message has been edited by Dawn Hafner (edited 06-15-2000).]

I am VP of HR for a samll community bank with offices in 5 different counties across the State. We are considering offering some type of employee assistance program(i.e., acces to legal advice, psychiatric counseling, substance abuse counseling, etc.)I am interested in information anyone can provide along this area --do you have one?how does it work? provider information, do employees use it and appreciate the benefit? etc. Thank you.