Aside from the RPA '94 rules. Say in the history of a plan the company amends from time to time the definition of actuarial equivalence. Is it necessarily true that the lump sum a participant could have gotten at the date of change grandfathered in some way. It doesn't appear to always be stated in plan documents.

Say a company discovers that they made a mistake and they gave al retiree an extra $100 per month. Say the company discovers this several years after the person began receiving a pension. Can they correct the mistake and then pay the smaller benefit? Has it been done?

Assuming a plan allows loans to be repaid over 5 years, what is the required maturity date of a loan that was taken out to refinance a previous loan. There appears to be two possible answers here: reamortize the loan with a maturity date five years from the date the original loan was taken out, or reamortize with a maturity date five years from the date the new loan is taken out.

I guess what it boils down to is whether the second loan is considered a new loan. Any guidance or information would be greatly appreciated.

In a Community Property state (California), a husband contracts with his wife to give his son 40% of the husband's government plan retirement benefits should the husband die first. The husband dies. Is the wife required to give the son 40% of the benefits? or may she keep all the benefits since the husband did not otherwise will it away?

A client of ours sold his stock in a small company to a newly created ESOP. 30% of the sale proceeds were in the form of a note. The terms of the note do not require any payments during the first 12 months. The balance of the proceeds (70% cash) were investing in qualifying 1042 securities. If he purchases additional qualifying securities with the note proceeds, will it qualify for the 1042 deferral? (Even though the proceeds won't be collected within the 12 period following the sale?)

And, can the 30% which was sold for a note qualify as an installment sale? (Assuming we don't get the 1042 deferral.)

Any comments are welcome. Thank you.

I would like to have suggestions regarding the creation and implementation of financial education materials to a diverse and decentralized work staff. Our DC provider offers 27 funds which has created a lot of confusion with our participants. Some participants need the very basics such as the difference between a stock and a bond and then we have others at the other end of the spectrum that are very financial savy. Any ideas on how to go about creating the materials and how to present them? Your suggestions would be greatly appreciated.

Can anyone tell me if there are any regs against an employer paying 100% of the premium for salaried employees, but a reduced percentage for hourly? This is a small, non-union business with a fully-insured HMO. Thanks.

If a plan requires that a participant's deferral contributions get suspended for a twleve month period after they take a hardship distribution and allows for multiple distributions in a twelve month period, how is the suspension of deferrals handled? For example: Jane Doe takes a hardship withdrawal in 8/98 to pay for her daughter's tuition for college and takes a second hardship in 2/99 to pay for unexpected medical fees. She suspended her contribuitons to the 401(k) plan effective 8/98. Does her hardship suspension end 8/99 or is it extended to 2/2000? Thanks.

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

AOlson

We are looking for COBRA forms (initial notice and election forms) in Spanish? Would anyone be willing to share or are they published on the web anywhere?

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

CGleaton

My aunt works for a nation-wide company which planned to down-size 3000 employees. Her company offered its employees an early retirement package with two years pay in wages. My aunt was planning to retire in two years anyway (She's 55 and has been working for the company since she was 18 yrs. old.), so she opted for the offer. She and several of her coworkers of equal seniority were not selected for the retirement offer, and numerous individuals with less time with the company were chosen. In the early 1990's, her company offered the same exact retirement package, and employees were primarily chosen by seniority. Unfortunately, I am not cognizant of her union's current contract with the company. In case the union agreement doesn't waive any seniority rights, my question is: Does this case have grounds for a class action suit under the protection of ADEA or its Older Workers Benefit Protection Act amendment? I appreciate any feedback on this matter.

I don't know how the DRO you have is worded, however, most I've seen related to a 401(k) plan simply state a dollar amount to be assigned to the AP. In this case, in my opinion, it would be irrelevant how the AP and attornies arrived at the dollar amount as long as there is enough money in the participant's account to cover the AP's portion assigned by the QDRO.

I feel our attornies would reject a DRO that mentioned moneys from a terminated plan and let the AP's attorney re-write the DRO.

Do all states allow for an employee participating in a SIMPLE IRA to exclude the employee deferral contributions from his income for income tax purposes? I have heard that there may be some states which don't recognize SIMPLE IRA's and require taxpayers to add their deferrals to their income for State tax reporting?

Question has come up at least twice, and have gotten at least two different answers.

On a plan termination where life insurance is involved, who gets the surrender value, the participant or the plan.

My actuary tells me the insurance is an asset of the trust, and it does not matter whether this is a DB or a DC plan.

Am working on the termination of a DC plan where there are NO participant directed accounts, and an attorney mentioned that the insurance belongs to the account of the participant upon whose life the application was taken.

Which is it?

ST

Bank A made loan to Employer A ("Bank Loan"). Employer A lent proceeds of Bank Loan to ESOP ("ESOP Loan"). Bank Loan qualified as a a securities acquisition loan under Section 133 of the Code. Bank Loan was made prior to 1989, and was not subject to the pass through voting requirements. Prior to the full repayment of Bank Loan, Employer A refinances Bank Loan with Bank B. Bank B does not utilize the 50% interest deduction. The refinancing extends the term of the loan past the term of the original loan, possibliy triggering the pass through voting rules. Can we argue that pass through voting is not applicable because the lender is not utilizing the 50% interest deduction of Section 133?

I've read differing deadlines for amending governmental plans (e.g., GATT, etc.). Is it the end of the 1999 or the 2000 plan year?

Thank You

A self funded group of mine has approved coverage for the employee's "domestic partners". What, if any, cobra benefits are available to "domestic partners"? And what qualifies as a "qualifying event" in this situation(as domestic partners rarely get married)?

Also, per a new negotiated contract, the employees are contributing a higher percentage of their premium. I have been told that this qualifies as an open ennrollment. Does it?

After an employer/participant (this is a one person sole proprietorship plan) has received a reversion of excess assets from a defined benefit plan, and has paid the IRS the 50% excise penalty on the reversion,....how is this reversion handled for the individual on his 1040? Does the individual pay taxes on the entire reversion, or on only the part that has not already been sent to the IRS in the form of the 50% excise penalty?

Situation: 12/31 plan w/ immediate entry date for 401(k); 2 YOS requirement & 1/1 7/1 entry dates for discretionary (profit sharing) contribution.

Question: can/should 401(k) deferred & compensation earned by participants eligible to defer, but not yet eligible for profit sharing due to 2 YOS requirement, be included in the deductibility calculation?

I understand including these amounts in the calculation when the only reason they're not "participating" in the profit sharing is due to a 1000 hour or last day requirement, but am unsure of how to handle in this situation.

Can you cite any Codes / Regs?

We have been using MHM Software for almost 10 years. Recently, DataPath has been sending information which looks very interesting. Does anyone out there use DataPath? If so, I would like to ask you how you like it and how it fits certain situations. Thanks

What can you do with uncashed distribution payments from a 401(k) or other Defined Contribution Plans after all methods to locate the participant has failed?

Can the amounts be escheated? Any legal references would help.

Thanks