I am in the midst of preparing a restated defined benefit plan document for a multiemployer pension plan client. Since it had been a while since I even looked at them, I looked to see if there were any changes made to the recent IRS update on its Listings of Required Modifications for defined benefit plans. I noticed that the Code citation to the definition of current liabilities was to 412(l)(7). As you may know, in the mid 2000s, 412 was amended to take a good chunk of it out of the section and put it into Sections 430-433 instead. Surprisingly, the LRM did not catch this. Since this client has had to adopt a funding improvement plan, looking at the assets being 110% of current liabilities for the rules not to apply makes little sense in this context. I know that there is a blanket exemption from the nondiscrimination rules for collectively bargained emplloyees. Since the pre-termination restrictions are contained int he 401(a)(4) regulations, it seems to me that they do not even have to be included in the plan. Am I missing something? Thanks in advance. 

Sponsor has a 401(k) plan with an EACA provision. They want to change the plan to be profit sharing only, effective as soon as possible. How much notice is required to be given?
I know 30-90 days is best practice - but is that required? Could they make the amendment effective tomorrow? 

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Hi,

Thanks as always for all the insights. 

Two PBGC DB Plans sponsored by same owner (controlled group).

One of the entities is not active anymore.

Both DB Plans are frozen.

If the non-active DB is merged with the active DB (benefits etc carried over) is this subject to the PBGC termination process with filing all the many forms or is the only form needed is a 5310-A as it is not a termination rather a merger?

Is there any downside to merging as opposed to terminating the non-active plan?

Thank you!

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Got a call from a financial advisor who thinks he's got a plan with a problem.  Plan was started in December 2025; the owner deferred, but because all employees work <1,000 hours per year, they were told that the employees are all ineligible.  But upon review of the adoption agreement, it was selected that all employees on the effective date are eligible.  And of course they weren't given the opportunity to defer.

Note: the business only started in 2025, so at least they can be exempt from mandatory automatic enrollment for now.

So kudos to the advisor for finding this and looking for help.  We discuss missed deferral opportunity and QNECs and he agreed to send me data.

Here's my problem: what is the base QNEC?  There is no average deferral rate of the NHCEs because they were all improperly kept out.  EPCRS talks about the rate to use for plans with a safe harbor (Appendix A.05), but I don't see an option for a plan with no safe harbor (because why would you put in a safe harbor with no eligible NHCEs? *sigh*).

Any guidance?  Thanks.

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Does any one work on pension plans that cover both US locations(US Citizens only) and Canada locations (with Canadian citizens/employees only)? 

I know it is allowed and possible, and that there would typically need to be provisions that may apply to ONLY the Canada employees, and ONLY US employees. 
There is an employer that sponsors a traditional DB plan, it is PBGC covered, and they are interested in expending the pension benefits to include their Canadian employees. 

Does anyone have some technical reading they can recommend? or if you do this kind of work do you have suggestions? TPAs I can suggest they look at that do this kind of niche work? 

Other thoughts? 

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First time hearing this one: Husband is in the US on a H1-B visa, and has brought over Wife on an H-4.  Wife is employed by my client.  Presuming she is legal to work in the US (which appears to require documentation and "milestones"), I don't see any reason she shouldn't be treated like any other employee, right?

I presume that the H-4 status gives her some kind of nine-digit identification number so she can be set up with the plan recordkeeper.

Thanks.

We wanted to provide a CE course for a brokerage that has reps across the US. If the brokerage is in California and the rep is in Idaho and their license to sell is in Idaho, if the course is offered to the brokerage firm would those in alternate states be able to apply the CE credit to their license? 

Do I have to use the Normal Retirement Age for the plan?  Or can I use 65 in my calculations?

NRA for this plan is 59 1/2.

Years ago, I created a spreadsheet that calculated an EBAR for a participant given the several items in the equation. 

I cannot find that spreadsheet ANYWHERE (grrrr). It worked perfectly with the UP-84 table.

The element I'm finding tricky is the APR to use.  I know I outputted a table from Relius.  But I forget which one it was.  Whether it was the APR table (maybe it gave like 3 interest rates: 7.5, 8. 8.5) of just the UP-84 table itself and I then calc'd the APR.

Trouble is, I'm not using Relius anymore.  I'm using FT William and that doesn't give access to the underlying tables.

Can someone point me to EITHER:

The APR Table for Up-84?

The equation to calculate the APR itself?

Can other TPA's please share how you handle the Form 5500 filings for clients who despite diligent follow up are not submitting their census data to you?

Specifically:

1) Do you send one last follow up to them saying that you wont be able to do their compliance testing & 5500 filing without the data and they should prepare to receive an IRS letter at some point?

2) Or do you resign as their TPA at some point before the 5500 is due to be filed?

3) Do you attempt to at least prepare a 5500 using only the data you have access to at their recordkeeper and then send it to the client with a disclaimer that it may not be accurate and that the compliance testing is still outstanding, just to at least spare them from receiving an IRS letter for a delinquent filing?  

How are you all handling these situations? 

We're reviewing our procedures for a closed MEP (for a PEO), and we're looking to see what the adopting employers are REQUIRED to get versus what it would be USEFUL for them to get.  Not in terms of legal notices, but all the admin work.

Examples:
Top heavy test results - send.
Full 401a4 detail... not sent to the individual adopters.  No real good reason.

So, yeah, like that.  Is it just more sensible to treat this is X number of standalone plans and send them all the testing, etc. applicable to their population/'silo' portion of the plan?  What are others doing?

Thanks.