We have a client who is changing actuaries due to non-responsiveness. As you might guess, the non-responsiveness extends to the requested transition of records and workpapers, and it is now necessary to send a more "official" request. Can anyone tell me exactly what an actuary's obligations are in transitioning records, hopefully with a JBEA or other cite that might provoke some action?

If a self-funded plan is funded, in part, by employee contributions and there is no 125 Plan in place, is there any way to get out of the Trust requirement?

We are currently re-vamping our Paid Maternity Leave Policy. We currently offer two weeks of pay when employees take leave after birth. I'd be interested in what other companies do: more paid time, less, ??. Also, while our current policy does not specify, the question has been raised whether men or adoptive parents qualify for the benefit, as opposed to post-partum mothers only. Any thoughts on that?

We are having trouble locating several terminated employees with account balances below $5000. We would like to complete forced distributions. Any suggestions on how to find current addresses, other than going through the Social Security Admin? What about turning those balances of to state government?

We have an employee that qualifies for (intermittent) time off under FMLA to tend to her own serious health condition due to a car accident. The car accident occurred 5 months before she was eligible but she has been taking 3-4 days off a month since the incident. Is it allowable to count the days off against her FMLA allotment retroactively back to when she became eligible? Are there any ways that employers can deal with employee leave abuse?

Can a 401(k) loan program bar someone from discontinuing repayment of the loan by payroll deduction? Would state laws allowing people to stop payroll deductions at any time be preempted by ERISA? We have participants who want to stop the payroll deduction repayment of their loan even though it means they'll be taxed on the remaining loan balance

But, check the plan document to make sure there are no specific provisions requiring the plan sponsor to pay these expenses.

Also, if the sponsor has been paying directly there could be a practice in place, changing it would probably need documentation.

Does anyone know if the IRS would give out a block of TINs that can be assigned by the TPA, attorney, etc. for newly established qualified plans, then just reported to IRS on the SS-4 form??? We are having a very hard time with timely responses from IRS using the fax number and waiting for them to fax back the TIN. Anyone know of any special IRS staff or offices to assist with TINs on qualified plans??

Thanks

Does anyone know if a participant of a state-maintained DROP could rollover eligible distributions into an eligible DC plan? Is a DROP a qualified plan for purposes of the rollover rules? Thanks!

My firm recently began talks with a potential takeover client and found out that 5500s had not been filed from 1992 through 1997. (I'm not kidding) It seems that the naive employer simply signed on with an insurance company who promised "turn key" service. When the employer found out about the mistake the response from the insurance company was "oh yea, we don't do that part of it". The 1998 5500 was filed on time. How should the IRS be approached about correcting this mistake? Should we just send in our first born?

I have a multi-state client that is interested in any state law that pertains to loans from retirement plans. Although I have seen no specific statute, I have been told that some states exempt retirement plan loans from typical requirements such as stamp taxes, etc. Does anyone know if this type of research has been done before?

I have a plan that is concurrently adding a loan provision and a hardship provision.

the h/s provision is safe harbour, and the loan minimum is $1,000.

say a participant with a $50,000 fully vested balance is faced with a $10,000 h/s. can he take a loan for the minimum $1,000 (to fulfill that requirement) and request the remaining $9,000 as a h/s? or must he take the maximum loan he's allowed, by law, which in this case would be the entire $10,000?

One of the Company's health plans has a plan year of 8/1 - 7/31. Premiums always go up on 8/1 - but the employer pays the premium for active employees. All the other health plans have plan years that coincide with the calendar year, so that open enrollment is always on 1/1. (It would be easier if all the plans had the same plan year - but that change is not likely to happen soon.) Can the Company increase the premiums for COBRA participants on 8/1 - so that it is still 102% of the premium. This would seem to fall within one of the three exceptions in the regulations for increasing the premium during the 12-month determination period. The increased rate would then be fixed from 8/1-7/31 for COBRA participants.

A U. S. corporation has a number of employees who are nonresident aliens from Mexico. Must the employer withhold the mandatory 20% on "eligible rollover distributions" made to these employees? Article 19 of the tax treaty between Mexico and the U.S. (which can be found at 1994-2 C.B. 489 or 1994-34 I.R.B. 1)seems to say that such payments are exempt from U.S. tax, i.e., no withholding. Does anyone have any comments or suggestions?? Thanks in advance...

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I am helping form a Consortium dedicated to the development of standardized XML vocabularies for HR transactions and data interchange. The vision is that standardized XML-based message formats for transactions will enable a new generation of open, "e-business" model software and services. See http://www.hr-xml.org for more information.

Much of the Consortium's initial efforts have focused on recruiting and staffing transactions. I believe we have a clear vision and direction in that area. There also has been significant interest in XML vocabularies for employee benefit transactions -- e.g., plan enrollment, status changes, option changes, etc.

The Consortium is actively seeking thought leaders in the employee benefits field to help us develop the XML vocabularies to enable a next generation of open, e-business model employee benefits services.

If you are interested in learning more about the Consortium or participating in its standards-setting activities, please contact me.

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Best Regards,

Chuck Allen

Consultant, Structured Methods

http://www.structuredmethods.com

tel. 1-919-247-6881

Coordinator, HR-XML Consortium

http://www.hr-xml.org

chucka@hr-xml.org

I terminated employment on 8-4-99, the Plan Administrator passed out the Individual Benifit Statements to all the employees, but he is holding onto mine and did not mail it to me. Secondly since I worked for 7 months in 1999 am I supposed to get another Statement in the year 2000? Also when I was first eligible for the ESOP plan back in 1986 the Plan number was 002, in on May 15th 1995 a new Summary Plan Description was issued to all employees. The Plan number for that one was 001, does this mean anything to the fact that there are 2 Plans and none of the employees were informed?

Facts: Decedent is unmarried, has an ERISA Plan and an IRA.

Query: It appears that, pursuant to the terms of Prop Reg 401(a)(9)-1 D(4) and Decedent's death beneficiary designation, Decedent's ERISA plan may designate Decedent's more flexible IRA such that the death beneficiary designations for the IRA apply. Where ERISA Plans are often inflexible as to "stretchouts" and numerous plans involve numerous default provisions if the death beneficiary instruction is not specific, and where no distributions need be income taxable prior to the minimum distribution rule requirements of 401(a)(9), this planning would appear to allow we planners to consolidate the entire process through one IRA Plan with appropriate defaults. The IRA is an irrevocable trust created by Decedent with identifiable living beneficiaries, assuming no charitable or estate beneficiary. A copy of the trust can be provided to the ERISA Plan Administrator. Has anyone considered this or seen any rulings or instructions on this?

The following might be an ERISA Plan death beneficiary instruction: "to the death beneficiaries x,y,and z in equal shares, under the terms of Article XX of Decedent's Living Trust, to be held in the plan and distributed as the Trustee directs, and if the assets of the plan may not be held and distributed pursuant to minimum distribution rules of Prop. Reg. 401(a)(9), then to the Trustee of Decedent's IRA acct. # ______". Any IRS authority on this? Again, the IRA is a trust for the benefit of living persons. Any reason such a distribution violates IRS policy or rules?

Is early termination of COBRA permissible where a business terminates all group health plans, but where the business owner obtainsan individual health policy for himself, only?

In this case business owner is trying to deprive ex-wife of COBRA rights. Would like authority that his individual policy is a 'successor plan,' or similar authority creating obligation to continue ex-wife's coverage.

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With the IRS and Social Security just having announced the new year 2000 limits on everything from section 403(B) plans to the Social Security wage base, here's a handy chart showing the limits from 1996 through 2000.

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Employee benefits legal resource site

With the IRS and Social Security just having announced the new year 2000 limits on everything from section 403(B) plans to the Social Security wage base, here's a handy chart showing the limits from 1996 through 2000.

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Employee benefits legal resource site