alexa

I have an employee who elected $4200 effective 1/1/2012 Theer was a system error snd $175 has not been taken semi-monthly for 5 pay periods. Employee just noticed. How would we fix this? Can we double up next 5 pays to catch up for the $875 not deducted to date?

I have a plan with a pre-retirement death benefit paid if participant is eligible for early, to spouse FMF date of death We notified the spouse 3 years after death since we just got death certificate Plan does say sposue can defer. If we pay her 3 years worth of monthyl payments and the plan doesn't have retro langauge si this an issue? I can think of other situations where we have done this retro as well such as disability pesniosn contingent on getting the SS award letter and term vested who didn't start their pension at age 65 then died at say age 68 and we paid lump sum of accrued beenfit to estate Also late MRD's If we add retro langauge can we limit to only certain situations?

How would the new Health Care nondiscrimination rules on fully insured plans affect offering LTC plans to employees at grade level 18 and above (typically earn over the HCE comp limit)

We have a 1/15/2012 quarterly contribution due Someone in my office mentioned a 30 day grace period for each quarterly where you don't have to worry about giving participants notice of msisign the date?

well that's my issue- the plan states that the disabled perso must apply for the pension within one year- this seems like a very odd provision but that's what I'm stuck with. I think it it is best to amend it out I am new here so did ask about precedence- I guess so few disabled where it must not have been an issue But I guess my question is would this plan change constitute an amendment to increase plan benefits which would then be disabllowbale since we are just under 80% funded We did just freeze the plan as of 9/30/11 but actuary is saying that freeze won't help us until next year not 2011

Severance from ctive employment is determined after 12 motnhs while disabled. The disability pension begins after severance. But one must be eligible for SS disbaility to get the diability pension. And in quite a few cases it can take over a year , as in our case, for SS Admin to grant you SS disability. The 1 year window seems strange to me and the Admin Committee wants to amend it out of the plan but at a cost- PV of disability benefits expected to be paid, although the ex employee is on deathbed and not married so not If our company has to put this into the plan ok but I just don't think that the intent of pPA would be for what I consider a plan administrative change and not ameaty increase in plan benefits. If the ex-employee had recieved SS eligiblity before the 1 year, he would have started his disability pension

We are slightly under 80% funding. A disabled employee (who is very ill and near death) did not apply for the disability pension under our DB plan within the one year period required. The plan requires eligiblity for SS disability as a criteria for elig for the disability pensio which is immediate no redcution. Social Security Admin had just determined his eligibility ; it took them more than a year. This 1 year provision is indeed soemthing new to me. The Admin Committtee has recommended amending this out of the plan. However our actuary is saying that this is an increase in plan benefits since we are slightly under the 80% funding and we advised us to contribute the Present Value of his disability pension. I am also running by ERISA counsel who has not gotten back to me yet. I wanted to get others opinions on this. We are not increasing the disability benefit. Seems like a catch 22 that to be eligible for the disability pension you must be eligible for SS disability. Since this took the SS Administration over a year to determine this guy's eligiiblity , one would think this strange concept of applying within a year to get the disability pension be amended out withut compromise funding of the plan? Any suggestion on how to maybe do this w/o triggering an increase in benefits? Much thanks Alexa

I don't know too much about KEYSOP's. Can anyone expound upon what they are and are they subject to 409A like a nonqulaified plan?

Yes I am familiar with what you speak. I have filed many 5300 series for new & restated & terminated plans over the years; I have a CAF # but my authority is only to file on behalf of the plan sponsor/plan administrator and receive copies of correspondence and respond to any requests for changes and or question again on behalf of the plan sponsor who is the one on the hook if you will for any issues. The sponsor delegates me for this specific form only on the Form 2848, Power of Attorney. I just got the prototype plan doc and am going to review who is designated to amend the plan currently and perhaps who the plan adminstrator is. Usually docs I have found to be very generic and don't actually spell out the name or even title of the Plan Administrator. Typically, in my experience it has been an officer of the Company (CFO or CEO in a small company and perhaps in a bigger co the VP, HR) I suggested to the Plan Agent that it may be more efficient to have current TPA bring the plan up to snuff for any final regulatory amendments and as part of the freeze/term resolution change the Plan Administrator to the Plan Agent that the bankruptcy trustee wants. I am gathering that the BT has this power to execute this amendment/resolution as you indicate above since charged with winding up the plan and paying out all benefits? I am assuming the BT is a fiduciary in this capacity and doesn't relieve himself from such duty even if he wants to assign PLan Adminstrator duties to the Plan Agent? I then assume that the Plan Agent is now a fiduciary. She had indicated that I should be added along with her- I told her that I do not want to become a fiduciary , so forget about adding me; she can sign all the papers she likes!<gr> but count me out. I am recommending she have/get fiduciary liability insurance. If we file with the IRS for a favorable term letter, I can be designated on the Power of Attorney for this purpose only. What type of document would give the BT the power to amend the plan or sign Form 5500's etc... Maybe I just missed it in the back and forth? I assume it may be some type of court order as part of the bankruptcy? This is a first for me;i..e terminating a plan which is in Chapter 7 bankruptcy Also, in familiarizing myself with the DOL "orphan plan" rules, it appears that the orphan plan may not need to be restated to bring it in complete compliance with all laws to date of termination/distribution of assets. It also appears that filing with the IRS is not a requirement either (although always was an option anyways but I recommend it to my clients) The IRS will accept the orphan filing with the DOL as long as plan participants are given the proper 402f? notice and if the plan has annuity forms to follow those rules. If errors have been made, IRS has said that the plan could go thru the 1 of the VCP corrective procedures. I mentioned to the Plan Agent that she get a good ERISA attorney prior to starting the process. I will keep you in mind if she asks me for names of a few folks.

What needs to be done to get the Plan Agent power to amend the plan, sign Form 5500's, etc...? Thanks

The Bankrupty Trustee(BT) wants to assign this to another company serving as a Plan Agent. Would a Power of Attorney 2848 be sufficient signed by the BT? Looks like Tax Form would be 5500 & 5300 But how do you list plan amendment and resolutions on Form 2848? Thanks Lexy

I think you may have missed the jist of my question. Who can sign resolution and amendments to the plan? thanks

Had a question- I have a ERISA 401k plan whose plan sponsor is in Chap 7 liquidation bankruptcy since October 1st, 2009. There is a Bankruptcy Trustee(BT). The BT wants to designate my acquaintance's firm as the QTA and doesn't want to have to sign anything;e.g. plan resolutions, amendments. Can that be done? How? via Form 2848? I have briefly read on a very high , quicky & dirty level<gr> the DOL's orphan procedure. I am assisting the acquaintance firm with operational due diligence and compliance. We were going to terminate the plan at 12/31/2009 and file the termination with the IRS to obtain a favorable letter upon plan term. But in reading the orphan plan procedure, it appears to not require this? Although filing with the IRS is optional, I always recommend it to my clients Any information would be appreciated since I am a newbie to plans whose sponsor is in bankruptcy. Thanks Lexy

We have solicited a few RFP's for a dependent eligiblity audit and have come down to 2 finalists. Has anyone had any experience with Chapman Kelly, a firm that provides this service as well as medical claims audits? Were you satisfied with their service? Were there any issues? Would you use them again? Does anyone use Oracle, and if so , how are you tracking verification of dependent eligibility in Oracle? Lexy

Did you get good results? i.e. did the IRS help you locate some folks? thanks

Wanted to doublecheck the IRS disclosure office to forward letters for under 50 participants Went to irs.gov and it appears to now just be one address in Doraville, GA In the past, I've sent to a local disclosure office Can anyone confirm that it now the GA address The 202 # in DC I called today does not answer thanks Lexy

For 1 our unions, a spousal surcharge of $150/month goes into effect for 2010 for anyoen who has a spouse who has coverage with their employer but the employee still wishes to cover the employee on our plan. Does anyone have a certification/affadavit sample form to use for this purpose? Much thanks! Lexy

Say we give the new hire 30 days to "opt out" and the 1st auto contribution goes in right after the 30 days , can we as employer elect not to allow for distributions in the 1st 90 days undre the final reg?

Hi All, I have a 401(k) plan with immediate eligiiblity for 401(k) and match If we don't to allow a refund after 90 days to folks automatically enrolled, how would that work with the 30-day notice requirement in aplna with immediate plan elgiiblity at date of hire? Lexy

We are going to try the IRS service Can we send 49 letters to them and then another couple batches of 49 without being charged? What other services including locator services , websites, etc... are out there? thanks Laxy

Allen - the claims you enumerate are preventive procedures and that is why they are covered prior to your deductible being met. Alexa - you need to address your question to your insurance broker. My question was is it legal to design your HSA this way? Someone here at the office said it was required in the HSA regs. Can you provide a cite if optional? thanks

We have an HSA design whereby if somene elects family coverage ( we have 2 choices single or family, where employee +1 is a family) Even if only 1 individual incurs medical expenses for the year the deductible that applies is the family deductible 2500 sungle 5K family Can we desing our plan where there is a separate deductible to be more like our regular PPO medical plan and allow the single deductibel to be reached rather than the family in this scenario?

George, By leave alone, do you mean not have the employee make -up the payroll amounts for 2008? I am ok it with it but need a cite as to allow this thanks Lexy

We discovered a system glitch in which health & dependent care deductions for 2 employees stopped in September. We discovered this during finalization of 1/1/2009 open enrollment How do we fix this issue now that we are into another tax year? Can we double-up their deductions in 2009 to play catch-up for the next 3 months? Can we ask them to send a check for amount on an after-tax basis? any other viable options?