david rigby

Just an thought: what is meant by "part-time"? For example, if EE works 10 hours a week, does the plan suspension language apply? If it does, could the plan be amended to be more generous for part-time rehires?

It may be a longshot, but ... if the provision was implemented with a fixed temporary timeframe, it may have automatically expired. (Sort of like an early retirement window.) However, such provision should have been non-discriminatory at the time it was created.

Yes, Doraville. http://benefitslink.com/boards/index.php?showtopic=42132

You could. But a PFB is voluntary; any excess may be added to the PFB but there is no requirement to do so.

I was not being so blunt. Those are the most obvious of the options that can be used. If the EE is closing in on (or already passed) NRD, the easiest solution is to make sure the plan permits in-service distributions at NRD.

If it helps to have more than one vote, I agree with Andy. There may be other issues to consider with the merger, such as top-heavy or 415 or 410(b) or 401(a)(26) or 401(a)(4). Some may be trivial, but that does not mean they should be ignored. As always, it's best to ask such questions of the plan's actuary.

... but you can create a distributable event pretty easily.

Is any termination necessary? Merge?

A couple of useful books are: Pension Planning, by Allen, Melone, Rosenbloom, VanDerHei. (My 7th edition has those authors. Later editions may have different authors.) Fundamentals of Private Pension Plans, by McGill and Grubbs. (My 6th edition has those authors. Later editions may have different authors.)

OK, I'll bite. How does a plan violate this?

See IRC 411(a)(13). 3 years.

First, you are not required to have a PFB. It's optional. See IRC 430(f)(1)(A). Second, you determine your "net assets" by subtracting the PFB to the extent it will be used to offset in your minimum. See IRC 430(f)(4)(A). There is a 10% excise tax for contributions more than the deductible limit. See IRC 4972. Do you have a cite for excise tax on amounts greater than the minimum?

Data as of 30-APR-09 Moody's Daily Long-term Corporate Bond Yield Averages Utilities Industrial Corporate Aaa NA 5.45 5.45 Aa 6.34 6.28 6.31 A 6.55 6.96 6.76 Baa 7.91 8.56 8.24 Avg 6.93 6.81 6.87 Moody's Daily Treasury Yield Averages Short-Term (3-5 yrs) 1.10 Medium-Term (5-10 yrs) 2.41 Long-Term (10+ yrs) 3.85

One could also state that it would be draconian for Congress to create a mandatory insurance program, where there is no insurable interest. But I digress.

It depends. Could be a or b, depending on plan wording. Might also be c if TH issues are in play.

No. Not "for plans" per se. Think of it generically, as a letter forwarding program, rather than a lost participant program.

From http://www.pbgc.gov/workers-retirees/benef...nt/page789.html "The maximum guarantee applicable to a plan is fixed as of that plan's termination date except where termination occurs during a plan sponsor's bankruptcy and the sponsor entered bankruptcy on or after September 16, 2006, in which case the maximum guarantee is fixed as of the date the sponsor entered bankruptcy."

Not quite. It's 49 or fewer in a 12-month period. This is the <50 program: http://www.irs.gov/retirement/article/0,,id=110139,00.html This is the 50+ program: http://www.irs.gov/retirement/article/0,,id=110142,00.html

I don't read the instructions that way.

Was the contribution actually made in 2009? Could it be declared as a 2009 PY contribution?

Perhaps I misunderstand the question. Why might you not follow the instructions?

Merger is not termination, or freeze, or suspension. A plan cannot escape the final 5500 requirement by engaging in a merger. This is not a comment on the advisability of the merger.

Do the instructions to the test tell you to assume the de minimus benefit applies? (Is it optional, after all.)

See 101(f)(1). Participant = active, retiree, beneficiary, VT, QDRO

Of course, Andy is correct w/r/t predicting the future. However, it's an easy exercise to calculate a PV assuming the rates don't change and you find that the LS probably goes down, just as you suppose. But, there are other factors when considering the question of terminating the plan. Always good to talk to your actuary!