david rigby

IMHO, that is not what Q&A9 is saying. It does not say "404(a)(7) does not apply"; you still have the 25% deduction limit, but only w/r/t the DB contribs.

....meanwhile, consider the possibility of looking for another job.

Gray Book QUESTION 91-22 If an amendment increasing benefits or decreasing benefits is adopted and effective after the valuation date and during the plan year, how should that amendment be reflected in computing the full funding limitation? RESPONSE Under Rev. Rul. 77-2, the employer has an option to disregard any amendment that is adopted after the valuation date during the plan year. Although the amendment can be disregarded for that year, it must be taken into account in subsequent years. If, however, the employer chooses to take the amendment into account for the plan year, Rev. Rul. 77-2 provides that the charges and credits to the funding standard account "shall reflect the change in such benefit structure for the portion of the plan year subsequent to the effective date of the change." For most of the charges and credits to the funding standard account, this rule results in a (weighted) averaging of the charges and the credits before and after the change. With respect to the computation of the full funding limitation and the special credit for the full funding limitation, however, the IRS is currently considering whether the nature of that computation and credit could be determined in the same manner. Thus, it is uncertain at this time whether the appropriate procedure is to: 1) determine the full funding limitation based on the benefit structure in effect as of the end of the plan year, or 2) determine the full funding limitation based on the benefit structure in effect as of the beginning of the year and based on the benefit structure in effect as of the end of the year and to take a weighted average of these amounts.

http://www.benefitscounsel.com/archives/001783.html

Hold meetings? Written documentation of the benefit application? Written documentation of the actions?

good point. Q is correct.

If not, and if the plan sponsor agrees, the plan can be amended to add this, assuming such provision applies to all participants over NRA.

Not disagreeing with prior comments, I suggesst the company (and/or the estate) should discuss all of these issues with its own competent ERISA counsel. Decisions are not the prerogative of the TPA.

I agree that this is unlikely, but it is possible under the terms of the plan.

February 28, 2007 Moody's Daily Long-term Corporate Bond Yield Averages Utilities Industrial Corporate Aaa NA 5.25 5.25 Aa 5.61 5.58 5.60 A 5.78 5.73 5.76 Baa 6.01 6.31 6.16 Avg 5.80 5.72 5.69 Moody's Daily Treasury Yield Averages Short-Term (3-5 yrs) 4.47 Medium-Term (5-10 yrs) 4.53 Long-Term (10+ yrs) 4.73 Moody's Daily Public Utility Common Stock Yield Averages Price 323.76 Yield 3.37 New Dividend 10.90

Are there any NHCE's? Be sure whatever action you take does not result in violation of 401(a)(4).

Be careful. If this includes ER stock with an automatic dividend reinvestment, that will constitute an impermissible increase. (At least, it did several years ago when this happened to one of our clients.)

No. Read here: http://www.pbgc.gov/practitioners/plan-ter.../page13263.html

No dispute about that reg. cite, but be sure to follow the terms of the document.

PBGC Technical Update 07-1, issued 02/13/07: http://www.pbgc.gov/practitioners/Whats-Ne.../page15560.html

Per phone conversation with Jim Holland today (02/16), guidance has been drafted. He would not divulge the contents, and expects it will be at least a week before review is complete.

5% owner? If yes, what would be the basis for stopping? If no, what would be the basis for starting? What does the plan say?

replies here: http://benefitslink.com/boards/index.php?showtopic=34377

Is the sponsor/controlled group paying for 2 audits? Any economy of scale available with recordkeeper? trustee? Why not merge the plans?

http://www.irs.gov/retirement/article/0,,id=111413,00.html

What is the goal? to roll over the real estate? Can the IRA receive/hold real estate?

Seen any new guidance on the proper interpretation of Section 803 of PPA?

Yes, I noticed that result. In our sampling, a majority female population had a small overall increase; a majority male population had an increase of about 10%. However, in both cases the CL-NC increased about 15%. We are still reviewing, so this is preliminary.

Be careful here. Were the distributions made to these partcipants because the plan was (thought to be) terminated? That is, the timing of distribution to a VT may differ from the timing under a supposed plan termination. I'm not saying this is necessarily a problem, but it may be prudent to know all the details.

Implicit somewhere in all this is that the default QPSA and/or QJSA is a 50% continuation. If the plan states otherwise, careful wording in the QDRO may be required. For example, our office has a few plans that define the QPSA using the 50% benefit, but if the EE dies after reaching ER eligbiilty (but before commencement) then the QPSA will be a 100% benefit.