Where can I find a list of factors that a plan sponsor should consider when choosing a TPA or recordkeeper? It seems a lot of plan sponsors think that only one factor, cost, is relevant.

We are going to merge 2 401(k) plans together (a subsidiary and parent).

I haven't found anything that tells me what I do exactly to implement the merger. Anyone know of any checklist or anything that may guide me??

Thanks!!

Are plan administrators/employers required to keep copies of the certificates of creditable coverage or would a log be enough?

Married employee terminates employment. Elects COBRA for self and covers spouse as dependent. Gets new job 6 months later, with group health plan coverage, no pre-ex exclusion. Does not enroll spouse in coverage at new job. Can Employer 1 terminate spouse's COBRA coverage? My opinion is yes, because she ceased to be a QB once the COBRA election period ran out under Employer 1's plan. However, I've seen advice in some COBRA guides that Employer 1 can't terminate spouse's COBRA coverage because SPOUSE did not become covered under another group health plan. My feeling is spouse has no COBRA rights once the 60-day election period expires and we're really terminating the former employee's coverage, which entails termination of dependent coverage as well. If we allow the spouse to continue, aren't we giving her a COBRA election outside the 60-day window?

Any thoughts or cites appreciated.

I'm interested in learning of instances where an employer switched from a 401 (k) plan to a defined benefit plan. What was the employee reaction? Who benefited? What are the legal issues involved in such a switch? I'm writing an article for a magazine and would greatly appreciate whatever input I receive. I will quote you if you want me to.

This law (PL 106-244 formerly S. 1309) was enacted on 7/10/00 and amends Title I of ERISA. It appears to state that (1) a church plan that is a welfare plan is deemed a single employer plan; and (2) a state is prohibited from requiring any church plan to obtain a license as an insurance company or from maintaining a certain asset reserve.

Subsection (d) of the Act, however, appears to require a church plan to be subject to State enforcement (in matters other than (2) above) as if it were an insurer licensed by a state.

Does anyone have any thoughts as to the practical affects of this law?

[Edited by Karen Geiger on 07-12-2000 at 04:53 PM]

I would like to change a valuation date from beginning of the plan year to the end of the plan year. What is the proper procedure to apply for a funding method change that is not covered by the automatic approval under Rev Proc 95-51?? Thanks.

Is a plan amendment to change a plan year automatically negated due to the plan sponsors failure to sign the amendment although the plan was operated under the provisions of that amendment?

I have a 401(k) Profit Sharing Plan for a law firm that is cross-tested and provides for several different profit sharing contribution percentages (discretionary) for different classifications of attorneys and partners. is it necessary to list the allocation percentages in the SPD or omit that information? the reason I dont want to include the percentages is for confidentiality (the partners dont want each other to know how much each other is getting).

I have two sales companies that constitute a Control Group. Each company sells the same product but different brands than the other. Each company has it's own Standardized Prototype 401(k) Plan Document that is a clone of the other. The one company has 85 employees other has 50 employees. Must the plans be audited?

CPA has a Corp with 7 Employees and has a SIMPLE IRA Plan that he fully funds for himself. He is a Licensed Stock Broker (sole proprietor) and has a SEP with him as the only employee, which he fully funds. Both of these plans are funded to the max as if the other plan doesn't exist. Is this OK?

Back in February there was a discussion on this issue;in the under 100 life situation, it's not clear to me that plan term benefit liabilities in excess of PBGC guaranteed benefits are deducted over 10 years; does anyone have a cite or is the reference to Q&A #10 from the '94 grey book in that Feb. discussion the only guidance ?

A participant who is age 66 wants to take out a plan loan to purchase a new house. He will sell his existing house and wants to use the proceeds to pay off the plan loan. Is this type of accelerated payment allowed by the IRS or DOL?

Also, is the distribution of the plan loan subject to the 10% early withdrawal penalty since the participant is over age 65? What if he dies before the loan is completely paid off, will his remaining balance offset the outstanding balance and his beneficiaries will not be subject to the 10% penalty on the defaulted loan?

Long term disability welfare plan requires claim for benefits to be submitted to insurer (fully insured), rather than the plan administrator. The claims procedure to the insurer is set forth in the SPD. LTD plan document has "Firestone" language for plan administrator. If a claimant ends up suing both the insurer and the employer, does the employer get the deferential Firestone standard of review if claimant never made a claim directly to plan administrator? Assume no indemnity provisions exist in the LTD contract with employer.

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!