rlb64

Isn't it general practice to give risk profile questionnaires that show a result asset allocation and still fall within education?

DOL Advisory Opinion 2001-09A discusses computer generated asset allocation models as investment advice and the provision of such advice would constitute a PT if Sunamerica provided such computer models. Does anyone know why the provision of computer generated asset allocation models constitutes advice and not education? As far as I could tell, participants didn't have to accept the results of the computer program.

I know that many plans such as prototypes invoke QJSA rights if there are any annuities, but I don't think it's required. The plan can trigger QJSA only if the participant elects an annuity.

In my view a profit sharing plan can eliminate QJSA rights if there are no transferred assets. It would be subject to the 90 day rule for elimination.

There is no black and white rule that I know of. They may be entering into a fiduciary breach situation if it's delayed too long. Your black out notice may need to be revised as well.

...as opposed to using the IRS table. Do we still have a choice? I heard that we may soon be forced to use the IRS table.

Has anything changed regarding whether we can use insurance rates to determine PS 58 costs for 2004?

If the plan's compensation definition is comp as of effective date, then you would have to prorate the limit for contribution and top heavy minimum. However, can someone prove to me the limit has increased to $205,000 for top heavy minimums? The reg seems to specify $200k with no reference to 401(a)(17).

Not to drag this out, but Morningstar fund summaries look like fund descriptions to me. They contain the "key" information described in the Opinion. Conceivably, a mutual fund company could design a Profile that looks exactly like a Morningstar fund summary and meet the 404c requirements. The question is, can a plan fiduciary get away with just sending a Morningstar printout as a Profile?

Well, such a position in my view makes 404c impractical unless the mutual fund company is the TPA. Just a thought...I wonder if investor services like morningstar request approval for all of their mutual fund snapshot info.

I'm not sure I follow. 404c requires fiduciaries disclose fund information. I'm not aware of securities laws requiring disclosure beyond a prospectus. I'd like to know what limitations the securities laws place on fiduciaries' investment education efforts.

It's interesting to me that most of the required information such as description of investment alternatives, fees, etc are contained in a prospectus. One would think that the reg would have said that furnishing a prospectus would satisfy some of the other requirements, but it doesn't. Perhaps the DOL is saying participants may not be sufficiently informed by prospectus alone because prospectuses are regulated outside its scope. My take is the DOL views profiles as outside its scope as well and can be a substitute for the complete prospectus which means the mutual fund company should write them.

Just as with plan imposed deferral limits, there is a maximum match amount based on the comp limit. I would calculate the match per payroll and stop matching once the maximum is reached.

I would think employer change requires an amendment. You can try to use form 6406 (application for determination letter for minor amendment.