Can anyone direct me to regulations, advisory opinions or specific information as to whether or not a non-fiduciary (directed recordkeeper/silent Trustee) can retain "float" interest on disbursement accounts (General Accounts) maintained for a qualified Plan? I have read through A.O. 93-24A (1994), but I cannot locate any other specific rulings or information. If allowed, would the non-fidiciary simply have to pass notice (disclosue) to the Plan Trustees (Fiduciaries)? Thank you in advance for any comments or suggestions.

A new PSP was established for the 1999 tax year. Yesterday the sponsor decided that he will be unable to fund for 1999. Am I still required to file a 5500?

There are 81 eligible employees. If I file I guess I would show 81 participants, none with account balances, and $0.00 assets at year end.

Seems like I remember that the plan and trust are not really established until a contribution is made.

Any comments appreciated

I was employed by a Catholic Diocese for the 1999-2000 school year. I am still receiving paychecks for that position. I just accepted a teaching position in a public school system for the next school year. The Diocese has cancelled my health insurance and offered me Cobra. Two questions: Is it legal for them to cancel my health coverage if I'm still getting paid? Can I opt out of getting Cobra now, but if I end up having to go to the doctor buy it and have it be retroactive - I believe I have 60 days to do this according to Cobra law, which would put me up to my new coverage.

A company sponsors a money purchase pension plan that, once eligibility has been met and a participant begins participation, requires 501 hours of service to receive an allocation of the contribution for the plan year. The company has decided, near the end of the plan year, that they don't want to make contributions to employees who terminated during the year so they amend their plan to require employement on the last day requirement as a requirement to receive a contribution allocation.

Some of the terminees worked the 501 hours and when they left were expecting a contribution. Now they won't get one. Is this a cut-back of benefits?

A check representing a monthly payment on a note owned by a qualified plan is mis-deposited in the community property checking account of the individual whose professional corporation sponsors the plan, and his former spouse (who is an alternate payee under a QDRO). Is there any problem with simply disgorging the money and writing a new check to the plan from the community account? Would failure to disgorge (i.e., participant writes a separate check to the plan from another account) be a prohibited transaction?

May a 457 plan sponsored by a governmental employer accept a plan to plan transfer from a 457 plan sponsored by a tax exempt employer?

We are having trouble with a particular custodian and the registration for a beneficiary IRA. The custodian registered the account as:

IRA FBO Client Name, XYZ as Custodian, B/O Client's Father's name DECD.

We prefered, and requested that the account be registered as:

IRA Client's Father's Name DECD, Client's Name benefciary,

XYZ as Custodian.

Maybe I am nitpicking. Is there any difference between the two in the eyes of the IRS?

I'm in need of some information cencerning Certificates of Creditable Coverage and claims administration. We are a TPA and when we enroll a new employee we request a copy of his COCC. If it is not received in 30 days, we send a second letter. If that second letter is not recieved in 30 days, all claims we have pending are denied with the reason "Certificate of Creditable Coverage not recieved."

My feeling is that we should not be denying these claims for a lack of a COCC, but rather, at that point, persue preexisting infomation, thereby treating the individual as someone who does not have any creditable coverage. And if the employee sends the COCC later, reprocess any necessary claims.

I would appreciate anyone's opinion on this. I'm uncomfortable in denying claims based on information that is only necessary for the possibility of a preexisting condition.

Thanks for any help!

Excerpt: "Tax legislation to be considered by the House Ways and Means Committee this week would substantially expand pension tax preferences for high-income executives but likely lead to some reductions in pension coverage among low- and moderate-income workers and employees of small businesses. The pension provisions, which are similar to those included in the large tax bill that President Clinton vetoed last summer, would primarily benefit high-income individuals."

http://www.cbpp.org/7-12-00tax.htm

Do you agree?

Any info on how this affects the otherwise terminated employee's eligibility for other benefit issues?

Are there any consequences to a beneficiary for taking a partial distribution from a ROTH IRA that had just been converted from a traditional and then the owner died (he did not meet the five year holding period)?

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).