I have 3 different retirment plans with my former employer. I am 53 and accepted 12 months ago an early retirement incentive package from my former employer.

The 3 retirement plans that I have are...401(K), Profit Sharing, and Defined Contribution. I want to elect a substantially equal payment option at this time. It is my understanding that such an option must remain in effect until age 59 1/2. I have two questons for which I am searching for answers.

QUESTON 1: When I elect substantially equal payments is the calculation based upon the total value of all 3 retirement accounts combined? OR, can the calculation be made based on the value of only 1 of the accounts? Can I choose which account to use for the calculation and distribution?

QUESTION 2: Upon reaching age 59 1/2 can I stop or reduce the substantially equal payments? OR, must the payment remain the same or must they be increased/accelerated?

Thanks to any help available. Also, please refer me to some documentation or something I can read on this subject.

A small employer was using a bank master plan document and the bank served as trustee. The plan has a 6/30 y/e. In February 1997, the plan sponsor fired the bank and self-trusteed the plan. However, the plan was never restated. I have been retained to provide administrative services and to bring the plan into compliance.

1. Did the bank document continue to be effective? I believe only regional prototypes have an annual filing requirement.

2. If we restate now, should the effective date be current or an earlier date?

3. If there is a "gap period", couldn't we cover it by restating effective back to Feb 1997 since the remedial amendment period will allow this anyway?

4. Any other ideas?

Does anyone know of any reason that an LLC taxed as a partnership cannot sponsor both a MPPP and a p/s-401(k) plan. A partnership can, and I find nothing which says a LLC cannot. Another consultant is telling my client it cannot be done, but has no citation. Thanks.

As of now only employees working 32 hours receive benefits. We are experiencing a growth in our part-time employees and are researching job sharing opportunities in some departments. I am trying to find out how other companies handle benefits in these two areas. Any information will be appreciated.

ERISA doesn't apply. State insurance laws don't apply (it's not insurance). COBRA, HIPAA, etc. do apply.

But is the basic law governing self-funded governmental plans simply state contract/state employment law (subject to the authority of the entity to establish such a plan)?

Are there other considerations?

Employees of a 501©(3) employer defer to a TSA program. All the requirements of 2510.3-2(f) appear to be satisfied; therefore, the program is not “established or maintained by an employer.” Despite the program not being covered by ERISA, the employer has filed 5500s. Is filing 5500s tantamount to making (or constructively making) an election to be an ERISA plan? If so, can an employer revoke the election and stop filing 5500s? Can the employer just stop filing 5500s? If the program is covered by ERISA is it always covered by ERISA? I believe in bankruptcy context, once an ERISA plan, always an ERISA plan; however, in preemption context a plan can drop in and out of ERISA coverage (I remember a 9th Circuit case saying that). Perhaps, there is no election element to being covered by ERISA and that filing 5500s has no effect on ERISA coverage. Can anyone help me? This stuff is over my head.

Plan Participant, 5% shareholder in C-Corp, will be leaving Company A to become LLP Partner in Company B. Needs dough to fund his share of the new Company B.

We plan on starting a new 401(k) Plan in Company B, which will accept rollovers (termination distributions). Since my guy will now be a partner in the LLP, is he barred from borrowing his rollover money?

He can borrow it before-the-fact right now..... It would just be cleaner to borrow from the new plan vs. the old.

Because it is rollover money, I don't think it's quite analguous (sp?) to the situation where a C-Corp stockholder becomes an S-Corp shareholder.

Plan Participant, 5% shareholder in C-Corp, will be leaving Company A to become LLP Partner in Company B. Needs dough to fund his share of the new Company B.

We plan on starting a new 401(k) Plan in Company B, which will accept rollovers (termination distributions). Since my guy will now be a partner in the LLP, is he barred from borrowing his rollover money?

He can borrow it before-the-fact right now..... It would just be cleaner to borrow from the new plan vs. the old.

Because it is rollover money, I don't think it's quite analguous (sp?) to the situation where a C-Corp stockholder becomes an S-Corp shareholder.

ERISA preemption aside, are you aware of any state laws that mandate an acquiring entitity to provide certain benefits to a target's transferring employees for certain periods of time after an acquisition? My question arose in the context of California law, but my review has not yielded anything obvious. I am uncertain of whether the reference applies to asset deals and/or stock/merger deals.

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I am reviewing distribution forms prepared by a TPA for a Money Purchase Pension plan and the forms do not include any explanation or waiver of the QPSA. I have always been under the impression that if the participant and spouse wish to waive the QPSA and designate a nonspouse beneficiary under a money purchase plan all of the notice and waiver rules must be met. In looking back over the 1.401(a)-20 rules though I see that a QPSA in a defined contribution plan is considered "fully subsidized". A-38(B). Also, A-35(a) could be read to say that no written explanation of the QPSA is necessary as long as the QPSA is fully subsidized. On the other hand A-37 seems to clearly require proper notices where the plan allows the waiver. Would appreciate any comments from anyone who may have delved into this lately. Thanks.

One of the assignments I've been given is to establish a PTO program for my company. As I understand it, this includes Vacation, Holidays, Sick Pay, and just about anything else that has to do with paid time off benefits for an employee. Can you explain a little bit more about these types of programs or possible direct me to a publication or internet link? Thanks!

Has anyone had the chance to review the recent (3/22/99) ruling in Lyons v. Georgia-Pacific Corp. Salaried Employees Retirement Plan? It seems to contradict everything I've ever thought about calculating lump sum benefits under 417(e). In a nutshell, the court has said that 417(e) must be followed only in involuntary cashout situations -- it does not have to be followed if the participant has a choice between an annuity and a lump sum. Any reactions out there? Is anyone taking this ruling seriously?

Two employees of the same employer who are unmarried and who both have health FSAs for unreimbursed medical expenses have had a child and would like to use the father's FSA for reimbursement of medical expenses associated with the delivery. However the mother is not the father's legal dependent. Although it would seem natural that the mother's health FSA be used for this purpose she will need to use all of her benefits to cover the cost of unrelated surgery following delivery. Is it possible to treat the delivery costs as pertaining to the dependent child so that the father's FSA can apply? I am concerned about possible charges of discrimination on the basis of marital status (unmarried), if this is not possible.

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a plan uses fractional unit credit plan. Except that it is integrated by cov comp. it seems that someone making more than cov comp can accrue more than 4/3 of the benefit someone else would. does this seem like a plan that doesnt meet accrual rules or does anyone have an observation about this type of plan?

I have been denied access to the Vacation Donation Bank established thru negotions with my employer, a County government. Others have been granted benefits under similar circumstances. Do I have any rights?

A client of mine wants to transfer his IRA from Bank A to Bank B. He is over 70 1/2 and began minimum distributions several years ago. Bank A will not transfer the account to Bank B without giving him the minimum distribution for 1999, even though it is not required to be made untill 12/31/99. What is Bank A's authority for this? Thank you.

My understanding is that the employer's required match on a SIMPLE IRA plan must be dollar-for-dollar on the 1st 3%, but can be reduced to no less than 1% in any two out of five years. If this is correct, I have two questions. 1) Can the employer use the 1% match in the first year? 2) What happens, if anything, if the employer uses the 1% for the first two years then terminates the plan?

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What are the distribution rules for a 403b plan with pre and post 1989 contributions in a comingled account?

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Bradlarsen@Adelphia.net

A plan changed it's vesting schedule effective 1/1/98, amendment adopted 8/15/98. The schedule was changed to a quicker more lenient schedule. What happens to the terminated participant who was terminated 6/15/97, but not paid out until 9/14/98? Must he get more of a distribution based on the increased vesting? or since he was terminated in 1997 does his vesting stay under the old schedule?

I have found much information on going from favorable to less favorable schedule, but not alot on the reverse??

Any info would be appreciated.

thanks!

Would anyone consider allowing a hardship withdrawal for a participant who would like to build a garage for his disabled wife so that she did not have to be "subject to the elements" when getting to and from her car?