My company employs 10 salaried and 30 hourly-paid workers. The hourly employees are non-union but are covered by the Davis_bacon Act i.e paid "prevailing wage as dtermined by the Department of Labor. The prevaling wage calculation includes contributions for pension and other fringe benefits. Since the prevailing wage calculation already includes pension benefits, do I have to cover these employees in a defined benefit plan?

The match was calculated incorrectly for 5 Highly Compensated Employees. The mistake was discovered after the end of the plan year and the excess amount was refunded to the employer. The auditor feels that this a prohibited transaction and requires Form 5330. The TPA states that it was mistake of fact and the refund is ok. The amount was about $1,000.00 for each participant. Is it mistake of fact? Can a remedial program be used? (APRSC) Should a Form 5330 be filed? Thanks for your help.

An ESOP was terminated effective September 15, 1997. Common stock was valued December 31, 1998. Terminated ESOP just received favorable determination letter with respect to termination. Document provides that distributions are based on anniversary date coincident with or immediately preceding date distributions are made. In light of Rev. Rul. 80-155, is an interim valuation required or can employer use valuation that is already almost 10 months old? Thanks.

Does anyone know of a good way to re-order accounts on Quantech?

I have a client who has $650,000 in an ira that she is taking substantially equal pymnts last 5 years (now age 53), of $21,000 out and would like to convert some of exsisting ira to roth can she do this? how much should be left in exsisting ira to insure distribution stream is not upset? anyone have a case like this appreciate your input.

Does anyone know of any reason we I can't repeal the family aggregation rules retroactively? I'm mostly concerned about the comp limit. Can I amend a plan to allow an increase in benefits for the current year (assuming it passes 410(B)) to pick up the lost benefits when the familiy aggregation rules limited the pay?

Maybe I'm behind the curve on this one, but I don't see any reason why I can't do it? Any comments?

Maybe I'm barking up the wrong tree but has

anyone ever heard of this?

A divorcing friend of mine was told by her

company benefits person and by a representative of Blue Cross and Blue Shield

that if there were a court order associated

with the divorce, she could

be maintained on her husband's health

insurance at the regular family (pre-divorce)

rate until either party remarried. (Not COBRA, in other words). Her

attorney had never heard of this and neither

has mine.

I am also getting divorced and contacted my

husband's benefits dept. They were hedging

(told me to do research through the

internet and contact attornies) and I'm not sure if this is because they

didn't know about this or because this is the best-kept insurance secret of the decade, or because it's completely off the wall to think this could be true.

They said something about a QDRO but

my reseraches thus far suggest that QDRO's

apply to pension plans.

Does anyone know anything about this? Your

input would be most appreciated!

If a PEO wants to file as a multiple employer plan (other)i.e. one master 5500 and each unrelated employer filing an abbreviated C/R, should there only be one forfeiture account? If there is a forfeiture account for each unrelated employer, should they file complete 5500's?

We're looking for some guidance on the following issues from those who may have already addressed them.

Facts:

DB plan provides for optional repurchase of service credit where former member (who received a separation benefit) is again employed by a plan employer.

DB plan permits repurchase to be made by means of an irrevocable salary reduction agreement (ISRA), which qualifies as picked-up contributions under IRS Code section 414(h)(2).

Because of interest rate changes, some ISRAs now provide for payments that are inadequate to satisfy even current interest charges.

Issues:

1. Can members execute an additional or multiple ISRA(s) to increase their repurchase payments, so long as the amount or percentage deducted each pay period under the original ISRA is not reduced?

[At least one PLR (9741049) seems to indicate that this is permissible.]

2. May a member make a direct lump-sum payment to either reduce or eliminate the balance owned, so long as the amount or percentage provided under the original ISRA is not reduced?

[This would appear to have the same effect on the original ISRA as additional ISRAs (issue 1), that is, to reduce the amount of time the original ISRA will be in effect; it does not change the terms of any ISRAs. Once the repurchase amount has been paid, all ISRAs would expire.]

We established a new profit sharing plan for calendar year '97. Initially, the client was going to fund the plan but has since changed his mind. Since there are no assets, do we need to file a 5500-C for the '97 year? Should we file it will all zero's?

Thanks for your help.

Documents are not required to be updated for GATT until the end of the 1999 plan year. However, a plan must be updated in order to terminate. Does anyone have approved language for GATT amendments they have used and would be willing to share?

There have been several articles lately on this subject. What terms are needed in the trust to prevent forced distribution of entire account within 5 years (if this is possible?)

A 401(k) plan states that the elective deferral limit is 15% . We have a few participants that went over the 15%. The plan offers no guidance. What is the best method for correction? APRSC?, follow the 402(g) regulations? Please provide any articles or legislation that may help. Thanks!

Somebody in our office asked me whether §129 plans were excluded from filing a Form

5500 and whether they were subject to ERISA. I'm not familiar with the operation of these types of plans and hope that someone could help me find the answers to these questions.

This is what I know so far. The instructions for Form 5500 aren't of any help. The 5500 Preparer's Manual doesn't indicate there is a need to file. But IRC §6039(d) lists §129 as a "specified fringe benefit plan" subject to reporting. I'm a little confused (more so than normal).

[This message has been edited by Mel Fuentes (edited 09-11-98).]

Has anyone had any experience with a QSERP "qualified supplemental executive retirement plan" marketed by Price Waterhouse? It appears they are using the cross-tesing to create a "passing margin" within the plan. Any feedback would be appreciated

Help!!! I need good basic info on ERISA requirements. I have read the DOL Regs and now need some human input!! What is the best way to comply? Are Summary Plan Descriptions a requirement?

Clarification: This is a 401(k) elected "salary reduction" of 15% by the self-employed. Not an employer "non elective" contribution!

Self employed elects 15% for 1998(this amount will be less then $10,000). Net income will not be determined until 4/15/99. When is the contribution required to be remitted to the trustee? Do you have a cite for your answer?

[This message has been edited by Gary Tencer (edited 09-11-98).]

I had a self-employed elect 100% of net income, which might be less than $6,000. Net income for 1998, will not be determined until 4/15/99. When is the correct time for the contribution to be remitted to the trustee? Do you have any cites to support your answer?

What plan documents are you using for these Plans? I have looked at 2 and am not completely satisfied with either one. One requires extra language inserted, and the Model Plan requires percentages for each rate group. Thanks for any input.