Hi.....Can any other group professional tell me if they know of any chat rooms dedicated to the employee benefit/group industry?

Any place to discuss the industry, closing, ect......... Thanks!!!

Can a plan freeze a participant's account from making distributions, loans or hardship withdrawals when it is simply informed (either orally or in writing) that a participant is going through a divorce without a court order?

Obviously, a freeze is intended to protect the proposed alternate payee from the participant's use (or misuse) of account funds that will be ultimately granted to the alternate payee pursuant to a QDRO. It seems to me, however, from reading ERISA section 206 and Code section 414(p) that alternate payee is not entitled to segregation or this protection until a "domestic relations order" has been delivered to the plan administrator for approval as a QDRO.

An alternate payee's protection seems to stem from a DRO, nothing else. Without a DRO that is a judgment, decree or order, the alternate payee has no protection. If the plan administrator provides the alternate payee protection without a DRO, isn't the plan administrator alienating the participant from his or her account? I've seen plan's put freezes where there is no DRO and that seems wrong.

Thanks in advance for your thoughts.

Can anyone direct me to a website with resourceful information on administering a self-funded short term disability plan? If no website available, would appreciate speaking to someone knowledgable in this area. Thanks!

I have a MPPP in which a participant had a loan deemed in 1993 and reported on 1099R. Accrued interest amounts to present were also reported on 1099R. The participant has now terminated. How does the amounts reported on 1099R for accrued interest affect his balance which he wants to rollover to an IRA? Is the sum of the interest amounts reported considered as taxed and therefore not eligible for rollover? Or is his entire vested balance still taxable and therefor eligible to be rolled over?

It's called Trust Officer's Power Pack, at http://www.bankinfo.com/Fundsm/trustpack.html.

[This message has been edited by Dave Baker (edited 02-03-2000).]

In the 8th Circuit, if there is a conflict between the SPD and the plan documents, the SPD trumps the plan documents. What is the case where the SPD contains an "active work" requirement, but the plan documents do not? I would assume a summary cannot contain requirements not found in the plan documents, but does anyone know of authority for that proposition?

New COBRA rates for the 12 month period are due Jan.1. Plan does not receive rates, quotes last year's rate to current COBRA enrollees and new elections. New rates arrive Jan. 25. Plan wants to retro the increase back to Jan.1, even though premiums are paid for January and in some cases 3 months in advance. My first thought is no way, but how long is the Plan tied to the rates quoted Jan.1?? May the Plan use the new rates any time during the 12 month period or are they bound (quasi-contractually) to provide COBRA at the first premium amount until a new 12 month period. Please provide citation if available...right now I'm thinking 26 USCS Section 4980B(f)(4)©applies("any applicable premium shall be made for a period of 12 months and shall be made before the beginning of such period."

Does anyone know if there are regulations on how soon participants must be notified of plan changes to a non-contributory dental plan?

Does anyone know of a court case or otherwise where the 10% early distribution penalty under IRC Section 72(t) has been challenged?

Or do you know of a tax case where a ruling has been made?

I have always thought that it is an arbitrary/illegal tax, and may want to fight it unless it's already been decided.

I have recently heard the as yet vague idea that a large IRA account holder could use a variable annuity to get money out of his estate w/o paying a lot in income tax. Apparently the annuity is set up to create a low basis for the purpose of making the IRA withdraw. Anyone have a take or experience with this mechanism?

I have recently heard the as yet vague idea that a large IRA account holder could use a variable annuity to get money out of his estate w/o paying a lot in income tax. Apparently the annuity is set up to create a low basis for the purpose of making the IRA withdraw. Anyone have a take or experience with this mechanism?

Employer has 12 employees in U.S., all in one location. The employer is a wholly owned subsidiary of a corporation in Europe that employs several thousand employees.

I think the controlled group rules require us to consider the employees in Europe in determining whether the employer has 20 employees, meaning that the U.S. employees are subject to COBRA.

Does anyone disagree?

Employer has adopted a matching formula of 100% of elective deferrals minus any amounts contributed to the profit sharing portion of the plan for that participant. Is this a permissible matching formula?

I'm looking for stats on the % of small businesses (under 25) that offer PS (no 401(k) option) plan. And also, what is avg. % of employer ontribution.

Thanks on advance

Can anyone direct me to a link/site that will give me statistics on small businesses and the % of those that sponsor PS plans? any help will be greatly appreciated.

Is it permissible to process a divorce transfer of SIMPLE-IRA assets to an ex-spouse within the 2-year holding period to either a SIMPLE-IRA or an IRA for the benefit of the ex-spouse.

An ESOP (which was at one time a leveraged ESOP, but has subsequently paid of the acquisition loan) acquired a "keyman" life insurance policy on the principal of the company. The policy then began to have a cash value shortly before the acquisition loan was fully repaid, however the Trust has never allocated any of this cash value to participants ESOP accounts. The cash value of the policy continues to grow.

I believe this should be considered a plan asset, and thus allocated to the participants.

I am curious as to whether any rules exist which would not require such an allocation? Would such rules, if any, only not require such allocation during the leveraged period (while the loan is being repaid with trust assets?).

Any help or references would be extremely helpful.

[This message has been edited by svatty (edited 02-01-2000).]

I'm working with a company that offers both a money purchase pension plan and a 401(k)plan. Currently, they self-administer and self-trustee the plans. Both plans offer individual brokerage accounts. Employees are permitted to open a single brokerage account to hold contributions from both plans. For reporting purposes, the company performs a pro-rata allocation of assets/transactions, etc. to determine activity in each plan.

Although I can't cite any legal authority, it seems that this approach has some issues:

1) Do you have a master trust if assets from two plans are commingled in a single brokerage account?

2) Are you accurately tracking benefit accruals (given that the MPPP and 401(k) plans have different distribution options) when you do a simple pro rata allocation to determine gains, etc. in each plan (presumably, the 401(k) plan receives contributions at a different frequency than the MPPP)?

Has anyone else experienced this type of fact pattern? Is there any legal authority supporting (or prohibiting) a single brokerage account for multiple DC plans? Opinions?

------------------

Jon C. Chambers

Principal

Schultz Collins Lawson Chambers, Inc.

(415) 291-3004

I am reltivly ignorant on this subject matter so any help is appreciated.

Currently my client has a 401(k) plan, it was part of a control group but due to change in ownership it must now be split into 3 seperate plans. The 3 new organizations would have less than 100 employees in each.

Can the 401(k) be terminated and then a SIMPLE IRA be setup?

Does this seem ideal or is there anything else I should be considering. I understand the setup of a SIMPLE IRA but am interested in other peoples experience with possible regularoty issues and conversion experience.

Thanks..

There's a raging discussion in our office about the entry date when restructuring the ADP/ACP test as allowed by Treas. Reg. §1.401(k)-1(B)(3))(ii). This allows us to exclude and test NHCEs who met the plan's entry requirements, but haven't met the statutory age and service requirements of §1.410(a)-3. This all seems straight forward to me, but there're some in the office who take it a step further and apply the statutory entry dates of §1.410(a)-4(B). I'm trying to find out if anyone else has heard of this. If you do, what's your guidance for appling the statutory time of participation rule to the otherwise excludible employee group?