david rigby

I believe the proper analysis is that an accrued benefit cannot decrease solely due to an increase in the SS benefit and/or wage base. Is that an adequate answer to your Q?

Insurance? Is this VP saying that there is insurance against bankruptcy? Funding? Qualified plan!

I agree with Blinky, although I might be more emphatic: it should be unacceptable that your software/procedures are the cause of failing to administer the plan according to the terms of the document. Fix it, either by upgrading your software, or changing the plan. Important: changing the plan may not be a true "fix". See IRC 411(d)(6).

Depends on what you mean by "highly paid". The Aon/GSU replacement ratio study can be reviewed here. Much is devoted to pay levels up to $90K, but there is also some discussion at higher levels. See page 14.

...plus interest if any portion of the contribution was made before the end of the plan year.

Before mbozek says it, this plan needs competent ERISA counsel, soon. If the plan administrator needs help finding counsel, I suggest asking the plan's actuary for two or three recommendations.

Kirk and mbozek both raise valid points. But from this layman's point of view, the attorney was still "deficient", primarily because the QDRO is an immediate negotiating tool as much as it is an effort to obtain a portion of the participant's benefits.

Difficult to answer your questions without more info. Strongly suggest you obtain and read the Summary Plan Description (SPD) for the plan. (BTW, you should have already been provided an SPD.) The SPD will include a summary of pertinent plan provisions, and may provide some answers. However, the terms of the actual plan document are controlling. (The plan must be a formal written plan document, not merely a promise by the employer.) If you want to read it, or obtain your own copy for a nominal fee, then the employer must make that available to you. You may also find useful reading material on the DOL website. For example, http://www.dol.gov/ebsa/faqs/faq_consumer_pension.html http://www.dol.gov/ebsa/consumer_info_pension.html

No expert I, but my thought is that you are violating the terms of at least one plan document.

No distribution? Your termination is void. Check the letter. Check the plan provisions. Start over with the termination process.

Well, almost. You do not have to modify and re-issue the SPD. An SMM should do it.

Implicit in Blinky's comment is the reminder that the 417 definition of lump sum is a minimum, so your plan could be more generous. Even then, the document should include the language defining this minimum.

LIBOR, Another way of saying Blinky's comment is that aggregating for 410(b) is related to coverage only, not the level of benefits, which is tested under the 401(a)(4) rules.

Caveat emptor! Many of those credit cards with low interest rates have other charges, so be careful.

This is the program: http://www.cga.ct.gov/2004/rpt/2004-R-0843.htm This is the application: http://www.cga.ct.gov/2004/rpt/2004-R-0843.htm See “Income” starting on page 3. It seems the posted question is not answered by the instructions on this form, but this cannot be the first time anyone has asked it.

Yeah, ... and to paraphrase QDROphile, "do the plan provisions already answer your question?"

Maybe. Call 1-800-TAX-FORM to get your own copy of Publication 590. In general, IRA contributions must come from earnings (which is not the same as "income").

Two sources to provide help: - use the Search feature of this Message Board. - Call 1-800-TAX-FORM to order your very own copy of Publication 590

Can you get some quotes, at least for ballpark purposes, from insurance websites?

If a contribution is made after the 8-1/2 month deadline, it cannot be counted for the prior year's funding standard account. In the same vein, the interest penalty stops accruing on that deadline, whether or not the contribution has been made.

IRC 411©(2)©(iii). 5% established by ERISA. Changed by OBRA87 to 120% of mid-term rate, effective for plan years beginning after 12/31/1987.

This is tragic news. I saw Mark just four weeks ago at the EA meeting. His in-depth knowledge of many topics has always been valuable to many others, and a great sense of humor.

The answer may depend on what you mean by "first". - If you mean "now", with no reduction to the employee's accrued benefit, then you probably can do that, via proper plan amendment. - If you mean "immediately upon severance of employment", it seems unlikely that you could amend the plan to require this [see IRC 411(d)(6)]. Important: in both cases, current plan provisions must be reviewed. Make sure you confirm action with your ERISA attorney.

Since the original post had a "difficult smell", this comment by JohnG is apropos. When you talk to a lawyer, perhaps this might be a good point to clarify.

Perhaps the SOA Table Manager is what you want. See this thread: http://benefitslink.com/boards/index.php?showtopic=27582