david rigby

Be very careful about bending the rules here. In all likelihood, it would be incorrect to assume "no harm in changing" just because the tax withholding has not yet been sent out.

I've seen lots of cases where the ER contribution was deposited into the wrong account/plan, either thru ER error or Trustee error. In all cases, when discovered, the amount was immediately tranferred to the correct account/plan, usually with a paper trail acknowledging this as an "oops". No auditor has raised any questions once the fix was made. However, Mike's cautions are worthwhile. It may be prudent to get advice of the plan's ERISA attorney, and/or advise the plan's auditor. But do it quickly; there is value in correcting the error as quickly as possible. Don't try to hide anything, and don't avoid written documentation of the problem and the fix.

Any possibility that the SS Administration will take this directly?

In most plans, this will already be determined by plan provisions.

Instead of looking for retribution, why not go to your ER today(!) and increase your deductions. If/when they tell you "no", then you politley point out the error, and restate the amount/percent you want deducted from each paycheck. Move forward, not backward. Just a suggestion.

Ask the plan administrator why your deductions stopped if it's not in the loan policy?

From the 2007 Green Book: Q&A 2007-1, Reporting: Distribution of Summary Annual Report To which plan participants must a summary annual report (SAR) be distributed? Participants as of the date that the SAR is distributed? Participants as of the end of the plan year for which the SAR is distributed? Individuals who were participants as of any date during the plan year for which the SAR is distributed? Individuals who were participants as of the beginning of the plan year for which the SAR is distributed? EBSA STAFF RESPONSE The Department’s regulation at 29 CFR § 2520.104b-10 provides that the plan administrator shall furnish annually a SAR to each participant and to each beneficiary receiving benefits under the plan within nine months after the close of the plan year or two months after the due date for filing the Form 5500 Annual Report/Report (including approved extension). The Department’s regulation at 29 CFR § 2520.104b-1(d) states that participant status for this purpose is governed by the definition of “participant covered under the plan” set forth in the Department’s regulations at 29 CFR 2510.3-3(d). It is the view of EBSA staff that a SAR must be distributed to each participant who was a participant covered under the plan at any time during the year to which the SAR relates and to each pension plan beneficiary receiving benefits at any time during the year to which the SAR relates. See 29 CFR § 2510.3-3(d) for information on when an individual is no longer a participant covered under the plan. EBSA staff noted that beginning with the 2008 plan year, the Pension Protection Act of 2006, Section 503, eliminates the SAR requirement for defined benefit plans subject to the pension funding notice requirement in ERISA section 101(f).

See explanation for Line 4j on page 35 of the 2008 instructions. Reference is to "current value". I read that to mean "the value at the time of the transaction", without regard to BOY or EOY value. Anyone else?

Minor point: the question in the title and the question in the original post are opposites.

I think there is no requirement to "credit" the CB against a quarterly contribution. I agree with Effen.

See IRC 436(f)(3). I see references to 60% and 80%, but not to 100%.

Deemed waiver of COB/PB is based on whether the plan provisions are impacted by the restrictions in IRC 436. If no restriction applies, then no deemed waiver applies. After determining mandatory waiver, if any, you might get to the question of a voluntary waiver.

Usually, where ERISA exempted certain categories of plans, it did so by stating that the exempted plan must comply with IRC xxx as it existed immediately prior to ERISA (signed into law 09/02/1974).

2K to 50K? Get qoutes from auditors?

The 50K goes into the assets, no matter what you do with the COB and/or PB. The "angles" are numerous. Many actuaries (me among them) will say, "Keep your balance(s) as long as you can, until you are better off to use and/or waive", but that is not a unanimous opinion. In this case, the big picture is that the plan is underfunded. Therefore, the plan needs cash from some source. BTW, an AFTAP of 85% is overstated if you are talking about plan termination liability.

Does this help? http://benefitslink.com/boards/index.php?showtopic=34940

If there is pattern of rehire, ASAAF may not be advisable.

I vote a. It's clearer.

... and then X (in the forfeiture account) is allocated to plan participants per plan provisions.

This is why you have a service agreement. Specify.

Normally, the pay shows up in W-2 based on the date of the paycheck, but check to see if there are variations in employer payroll practices.

Might the PS document already address this issue?

Data as of 31-AUG-09 Moody's Daily Long-term Corporate Bond Yield Averages Utilities Industrial Corporate Aaa NA 5.12 5.12 Aa 5.16 5.37 5.27 A 5.54 5.61 5.58 Baa 6.17 6.59 6.38 Avg 5.62 5.67 5.65 Moody's Daily Treasury Yield Averages Short-Term (3-5 yrs) 1.02 Medium-Term (5-10 yrs) 2.56 Long-Term (10+ yrs) 3.94

Or benefits counsel, at your discretion.

Most plans with EE contributions will have language that answers this question. If your plan does not, check prior versions of the document (just in case it was omitted during a restatement). I'm not sure, but the plan may state that the minimum total payments s/b $60K. Although not directly to your questions, re-read IRC 72 (and regulations) to see if anything is relevant (likely).