ERISAatty

Link to three-headed frog story: http://www.local6.com/news/2900371/detail.html

At the request of a supervising attorney representing a DB Plan, I am also keeping close watch on the progress of H.R. 3108 - specifically, whether, if/when passed, it would affect Lump Sum calculations. The way I read the bill as currently written is that the corporate bond index rate that would replace the 30-year bond rate affects only current liability and funding calculations - NOT lump sums. It's a little confusing, since the bill and commentary occasionally mention lump sums, but other language seems to override that mention. lgolden, if you're still looking for commentary, check out the Techincal explanation prepared by the Joint Committee on Taxation at http://www.house.gov/jct/x-12-04.pdf Page 8 of the Technical explanation says that, (if passed), for plan years beginning 2004 or 2005, the interest rate for determinting lump sums must not be less than the greater of: 5.5% OR the interest rate specified in the plan. BUT, page 10 provides (as does Section 2©(3) of the bill in current form), that amounts payable, including lump sums, may NOT, solely because of the new law, be less than the amounts that would have been payable if the law hadn't been passed. So, I'm telling my supervisor that lump sums are NOT affected by H.R. 3108. (i.e. they can still be paid out as previously calculated, even if the bill passes). Board users, feel free to correct me if I'm way off here. Anyone interested in keeping close tabs on developments (the bill is currently in Committee, but no action has been taken since Feb. 12), can go to: http://thomas.loc.gov/ Type: H.R. 3108 into the "Bill Number" box on upper left. On the resulting screen, click any of the links associated with the bill. On the next resulting screen, click "Bill Summary and Status." There, you can see if any changes have taken place.

Well, I happen to speak German. Hasn't helped me yet on the IRS Help-line, but I managed to convince my interviewers at the firm that anyone who could master German grammer might as well take a crack at tax and labor regs....

Part of the function of providing notice is to comply with Code section 401(a)(31), requiring that qualified plans allow eligible distributions to be rolled over. However, Treas. Reg. 1.401(a)(31)-1, Q&A-11 provides that distributions under $200 need not be provided the direct rollover option. It's true that for distributions under $5000, the consent/notice requirements of Code section 411(a)(11) don't apply. But, for a distribution between $200 and $5000, you would still need to give the rollover notice. The rollover notice must be provided between 30 and 90 days before the distribution, as per Treas Reg. 1.402(f)-1, Q&A-2. That section also explains that if the distributee receives the notice, then elects to receive the money sooner than 30 days after the notice, that is fine.

As a relatively new, and learning Employee Benefits Attorney, I have often telephoned the IRS Employee Plans toll-free help desk upon becoming particularly stumped with technical Code questions. I have always been impressed at the agents' ability to quickly pinpoint my issue, and point me in the right direction. One one telephone call, the Agent on the line told me that the reference book she was using was Sal Tripodi's Erisa Outline Book. She recommended that I avail myself of that resource, available at www.cybERISA.com. After checking around, and finding generally good reviews, I ordered it for myself (books only, not the CD). Worth every penny. This set is fantastic, and I believe that my superiors are going to be impressed with my improved research efficiency. If you're looking for a thorough but concise reference source, this is the one to have. I'm sure many know about this source already, but this post is for those who don't. Just wanted to help any other newbies out there, like me, who could be greatly helped by this resource. Wish I'd had this when I started my current position...

Can the plan sponsor amend the plan, retroactively, to provide for a retroactive cashout provision? And by retroactive, I mean: an employee may have terminated 15 years ago, with a small balance in the plan. There was no cashout porvision in place then. Can the plan now impose the cashout limit, with the effect that the that long-ago terminateds will receive involuntary cashouts for amounts under 5,000? (The permissive automatic rollover under EGTRRA for amounts between 1,000 and 5,000 is not a feature of this plan). I'm looking at Treas.s Reg. 1.411(d)-4, Q&A-2, subparagraph (b)(2)(iii)(D), Example 3(v). Seems on point (and seems to allow amendment), but doesn't address whether it can be retroactive. Any thoughts/insights? Thank you for any help!!

I know that a Notice to Interested Parties must be posted for employees at least 10 days before an application for a Determination Letter (in this case a 5307) is filed. But today I was asked how long the posting must stay up. I'm *assuming* it can be taking down on the day of the filing. Anyone know for sure? Thanks for your help.