Can someone recommend a group that would audit medical claims on a commission basis as opposed to being paid up front? Please call me at 212-833-6189 or e-mail me at sharon_lovy@loewscpx.com

Thanks.

I have an employee who is a 24 year old, hourly employee. His residence is with his mother, who is a 7% stockholder in our company. The stockholder is salaried, making less than $80k each year, and does not defer salary to the plan. Since family aggregation no longer applies in this case, is it possible that family attribution might in determining whether the 24 year old is an HCE? Any help is greatly appreciated.

I am an actuary terminating a DB plan of a county-owned hospital. The assets do not appear to be sufficient to pay the lump sum value on the definition of actuarial equivalent currently in the plan (pre-GATT, PBGC basis). In addition, the assets may not be sufficient even using the GATT basis (say about 6% interest rate).

It has been proposed that the plan be amended to adopt the GATT mortality table and whatever interest rate that will make the plan sufficient.

Anyone seen this? Do you believe that it is permissible under the IRC, since the plan is exempt from IRC 411 and 417? If so, might there be any concern that state laws could come into this gap (that is, the 411 and 417 exemption)?

My perspective is that the plan could be amended to do this. However, the terms of the document contain "vanilla" language about "no amendment will reduce the vested benefit of a participant determined as of the later of the date such amendment is adopted, or the date such amendment becomes effective". This causes me to be concerned that the proposed action may be OK under the IRC but violate the plan itself.

Any other advice?

Thanks

I would like to set up a health fair for our employees, but am not sure of what vendors, activities, displays, etc. that I should have. Has anyone ever coordinated an on-site health fair? I would love to hear the details. THANKS!

Company B maintains an ESOP. Company A buys company B, including the stock in the ESOP for all cash. What is the obligation of Trustee of company B's ESOP to purchase stock of company A? Can the ESOP be terminated and only cash be distributed to participants notwithstanding the fact the ESOP refers to stock distributions? After the sale, can the ESOP be amended to eliminate the stock distribution option and just provide for cash distributions?

One of my doctor clients recently sent me an article touting the use of CICs as nonqualified deferred compensation plans. Apparently, these which allow the employer to take a current deduction for malpractice insurance premiums paid to an off-shore insurer owned by the doctor. The assets accumulate tax -free until the doc retires and then liquidates the insurer at captal gains rates. The arrangement is als being touted as an asset protection device. The only info I can find on CICs has been published by the touts. Does anybody have any experience with these things?

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Can someone guide me in the process of choosing one investment consultant from our current two with regards to interview questions? Or any other insights? Thanks...

Other than the traditional benefits, medical/dental, etc., what other perks do you offer your employees? I am looking to set up some extras for our employees. I've started out with the basics, amusement park discounts, etc. but am looking for other creative ones.

Regarding the MKC (Magic Kingdom Card), has anyone acted as the club director? I understand that the club director gets some 'perks' of their own...tickets? discounts? I'd love to hear more about it-although this doesn't make the difference about me receiving the cards for our employees.

Thanks for any info!

I have two questions 1) if a company only has HC people, is there a discrimination problem with unreimbursed medical plan? 2) Can a multi-state company exclude on the plan doc all but one or two states of employees?

Under Notice 88-53, Q & A 11, employer securities in excess of the minimum amount required under Section 401(a)(28) cannot be diversified to the extent the securities may not be distributed under Section 409(d). However, I frequently see ESOP documents drafted to allow "excess" diversification, e.g. 100% divesification at age 55, even though Section 409(d) provides that the securities must be held in the participant's account 84 months from the date of allocation to the account.

The only explanation I have been able to develop is that Section 409(d) may only apply to the old TRASOPS and PAYSOPS and not to ESOPS. Does anyone else have an explanation for the apparent disregard of Section 409(d)?

I know that most TPAs store documents for seven years. Is this statutory or an industry standard??

Have a 401(k) plan with a plan year of 8/1/1999 through 7/31/2000. One participant (the owner) is able to defer 6.25% out of first paycheck of the plan year (August 1999) and reach the $10,000 maximum deferral. When is the next time that this participant can defer into the plan. Is it after January 1, 2000 since this begins a new tax year for the participant or is it the next plan year?

If it is as of January 1st, and the maximum amount that can be deferred is increased, then what limit should be used (1999 or 2000) for the "second" deferral into the plan? Also, is there anything I should be aware of when doing plan testing?

Your assistance is appreciated and any cite(s) would be helpful.

Say an employer has two plans and a participant is in both plans. His balance in plan I is 2000.00 and his balance in plan II is 4000.00. Can he be distributed under the involuntary cashout rule in both plans or do the balances has to be aggregated (equaling 6000). (Say both plans allow involuntary cashouts for account balances less than 5000.00) Any regulations you have would help. Thanks.

Do we need to show the total share value (released and suspense) and the outstanding loan principal as assets on the 5500C/R? We put the shares is Corp. debt and the loan as a liability. The market value of the released shares is net asset. Is this the way it should be shown, or do we only put the market value of released shares?

How long can an alternate payee (AP) leave her share of a participant's account in a plan (presume a MPP Plan/PSP arrangement). The participant is a non-5% owner and has reached NRA and may begin drawing on his benefits while still employed. The AP wants to leave her share of his benefits in the plan longer. Can she postpone distributions until the participant would be required to take distributions under 401(a)(9)? Or must she begin receiving distributions when he does? Is the answer different if she (a) does not have segregated accounts under the plans or (B) does have segregated accounts?

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A Profit sharing plan (w/401k provision) is written such that if a person exceeds the 415 limit, then 401(k) deferrals are returned 1st.

If the deferrals are returned 2 1/2 months after plan year end, is IRS Form 5330 needed? (as in the case of a failed k test) Or do we just return the deferrals and that's that?

thanks

A participant is 55 with 10 years of service and wished to diversify. Plan allows in-service distribution as an option for diversification. Is this participant subject to the 10% penalty for early withdrawal?

In October 1997 we switched from sick leave and vacation leave to Paid Time Off. Employees sick leave balances were grandfathered. Employees are allowed to use Grandfathered sick leave after 5 consecutive day of personal illness or injury. Sick Leave is no longer accrued.

PTO is accrued each pay period with carry over to the maximum allowable carryover. Once an employee meets the maximum carryover they stop accruing PTO until PTO is used. Since 1997 we are having a significant number of employees hitting their maximum on PTO and are no longer accruing PTO leave.

We are trying to address this situation so employees are not penalized for not taking Paid time off. Company executives are not willing to raise the maximum. Any suggestions?

Does anyone have any thoughts on whether a plan can permit employees normally scheduled to work 1,000 hours in a year to become eligible after 30-60 days of employment, but require those who are not regularly scheduled to work at least 1,000 hours to actually complete 1,000 hours? I have recently come across these situations in a couple of plans where clients want to do this. Any views on this issue would be sincerely appreciated.

watch out for the chapter on permitted disparity. there are a few typos.

in the practicle example, they say plan year is 1998, but the rest of the example is based on 1997 wage base.

Roman Numeral III '5.7' was left out of 2. a.

the wage base on page xxx for 1999 says 72,400 and should be 72,600.