Due to massive growth, my company will be relocating its hq for the 2nd time in 4 years. This new location is 7 miles from our current site and 20 miles from the original site, but we fear a potential loss of employees if we do not offer benefits to having them stay & travel the extra miles. I am, therefore, looking for suggested percs or benefits which we may offer to make the additional drive or ride time worth the effort.

We have a 403b1 Tax Deferred Annuity Plan. The plan is totally funded by employee contributions.

My understanding is that we are exempt from ERISA is this true ?

Inc magazine in the August 1998 has an article detailing the difficulty of selecting and installing the "best" plan for the business, the shareholder employees and the other workers.

http://www.inc.com/incmagazine/archives/08981051.html

First, the focus of the test is "key employees," not HCEs. That distiction helps one reach the conclusion that if you have only key employees, you cannot have a cafeteria plan. This has been our conclusion for a one person P.C., we have not encountered a large group with only key employees. The plan is available to non-key employees even if they are HCEs, so pay close attention to the definition.

A recent case in the 5th circuit (RADFORD v. GENERAL DYNAMICS) has held that for purposes of bringing a fiduciary claim the sectoin 413 statute of limitations is not tolled by filing a claim under the plan's claims procedure AND filing under the claims procedure was required prior to bringing the actions. This is a trap for the unwary. It also may be incorrect. The case will soon be out on the commercial sites. It is obtainable now at www.ca5.uscourts.gov Docket no 97-10689 (8-18-98). Are there similar view in other circuits or is this first impression?

We have established a 401(k) for a new client. The client phoned and said they have a frozen 457 plan. They would like to know if the participants can transfer the funds to the 401(k) plan? Any other options for the client?

I am seeking info on company policies regarding tuition reimbursement. What are your practices?

Hail Benefitslink,

Did anyone see the 60 Minutes show on CBS

several weeks ago re: retirement pension

audits? If so, do you know the name of the

nationwide firm mentioned in that broadcast?

Tnx,

Jay

Hi, I work for a small non-profit which will provide some severance pay based on years of work, etc. to employees laid off due to a funding termination. Can the employees ask the employer to contribute part of their final check for severance pay or for vacation pay to their 403b account. The severance pay is taxable and I believe is considered compensation under federal law. Thanks!

Do loan provisions apply to 403b's just like any other defined contribution plan? or are some of the rules different?

Thanks

Garry

I posted a query last week re a plan participant changing jobs, not able to repay a plan loan from old plan, has after-tax contributions balance equal to approx. 30% of total vested account. One reply indicated the plan loan would be fully taxable ( and subject to penalty in this case )and the old plan admin. would withhold out of the after-tax contributions, then return the remaining balance of after-tax contributions to participant. Remaining account balance would then be rolled over to new employer's plan.

Just double-checking, do I understand this correctly?

Is there an ERISA requirement re how fast the after-tax contributions must be returned?

If the participant could get back his after-tax balance within the 60 day rollover window, he could negate a large part of the tax and penalty on the loan distribution by using this money to fund a rollover IRA.

Thanks for any info on this.

I am interested in hearing from Companies who have contracted with Financial Planners to provide this service to employees. Specifically, who do you use, why did you choose them, are you happy, what specific services are provided? Thanks

The 8/10 issue of Forbes had two articles benefit planners and their clients might profit from.

The first article, Keogh Panic (click), detailed the importance of documentation and the penalties the IRS has available to impose.

The second article, The Price of Simplicity (click), compared the price paid in choosing a "simple" plan v. a more complex but more controllable and liberal plan.

The URL is www.forbes.com

[This message has been edited by Dave Baker (edited 08-20-98).]

Does a plan ever cease to be covered under PBGC after it has been initially covered? I seem to recall an old PBGC information letter saying that once covered, always covered. But the premium form says notify PBGC if plan ceases to be covered. Whatr gives?

My Dr group client now has fewer than 25 participants and will never have more--am I now released from premiums?

Soon after a merger our positions were eliminated. Before we left the Lump Sum benefit accural were changed. This change lowered the Lump Sum benefits by 18%. I feel we should have received a notice of change. We were told before the merger we would receive the best of the two plans. Where can I find information on this?

Has anyone heard anything about this new small business pension plan option since Clinton mentioned it in his State of the Union address in January? I've checked the DOL pages and haven't seen any action on this.

Peg Hetlage

Is it possible to roll over a distribution from a Qualified 401(k) Plan to a 403(B) Plan subject to ERISA? Are there any limitations?

What are some ways that a government can make contributions to a retirement plan? Can a matching contribution be made to a 457 Plan?

For anyone who is interested, I've just added a handy chart of maximum limits subject to inflation indexing to my employee benefits legal resource site. Among other things, the chart shows limits under sections 403(B) and 415 for 1998, 1997, and 1996. It also gives limits for other plans, including 401(k), 457, and SIMPLE plans, as well as the Social Security wage base and Social Security and Medicare tax rates.

[Note: This message was edited by CVCalhoun]

For anyone who is interested, I've just added a handy chart of maximum limits subject to inflation indexing to my employee benefits legal resource site. Among other things, the chart shows limits under sections 415, 403(B), 401(k), and 457, as well as the Social Security wage base and Social Security and Medicare tax rates, for 1996, 1997, and 1998.