mphs77

Passing coverage is one thing, but will it pass non-discrimination testing under 401(a)(4)?

Company A has a Cash Balance Plan with the standard age 21 and 1 year of service entry requirement. Entry dates are semi annual. The benefit formulas for the groups involved are % of the determination period Compensation for the Plan Year. A participant must work 1000 hours in the Plan Year to get an allocation. The prior actuary filed the Schedule SBs with a beginning of year valuation date. Thus, for example, the Plan had a contribution allocation on 1/1/2014 of $x dollars which included John Doe who did not enter the Plan until 7/1/2014. Seems odd to me, but I am an old dog and not prone to understand new tricks. My preferences are for a beginning of year valuation to be based on the 12 months prior to the valuation date. Is this anything to be worried about? Thanks for all guidance provided.

Could they be an Affiliated Service Group?

Stay on point in this forum....you must be kidding...... But really, I agree with jpod that the Hours of Service is not pulled into the discussion as it is a defined term and the capitalization does matter in this kind of issue.

My worry is what is meant by "regularly work 20 hours per week". A person who works 20 hours per week for half the year then 19 hours per week the other half would accumulate 1,014 hours in the year.....might just throw a monkey wrench in everyone's plans.

The other entity my have a different EIN, etc., but are you sure they were not owned by the same persons and possibly a controlled group with the current Plan Sponsor?

A DB Plan is attempting to terminate but one of the participants refuses to elect to receive their distribution. They believe they have been "short changed" by the Plan and is threatening legal action. what can the Plan do if she won't elect to take a distribution? Can the trustee rollover her benefit (well over $5,000) into an IRA for the participant without her election, or purchase a deferred annuity for her? Thanks for any guidance you can give.

No, not the whole account balance. I am just curious if the benefits, rights and features provisions will require insurance in the DC Plan.

I have a client who would like to have his 401(k) plan be an offset to a new DB Plan. The DB plan he would like to have would be a 412(e)(3) plan. If this is the final design, would the 401(k) Plan be required to offer insurance as an investment of the trust (or as an insured death benefit) as the DB Plan has life insurance as a part of the funding under 412(e)(3)?

Does anyone remember what TAG was referring to regarding what portions of the DC Plan may be used for the offset from tymesup's post on 10 Sept 2008? I know it is a long shot, but I need to take it. Thanks all

The obvious stamp mark (the grainy signature and a long line representing the bottom of the stamp) is the only indication of a stamp being used. There is no attachment that states the SB was stamped in lieu of signed and that it represents the belief of the Plan's funding status in the view of the Actuary (or any such stuff like that).

In reviewing the old filings for a client for which we have taken over administrative duties, I noticed a strange thing...... All Schedule B and SB filings were stamped and not signed. I always thought a stamp was not allowable to be used for a Schedule B or SB. Am I mistaken or is a stamp in lieu of an actual signature a problem?

Thanks WD!

We have a client with a DB/DC Offset arrangement. There are 6 participants in the DB Plan, but with the offset only the owner has an accrued benefit. The DB Plan has been filing PBGC premiums each year. The DB Plan is now going to terminate. As the owner is the only participant with a benefit in the DB Plan in the year of termination, would this be considered as an owner only Plan and therefor not required to file a PBGC premium for the year? Would it be required to file for a PBGC termiantion? Sorry if I have left anything material to the case out. Thanks

If the Employer hands out the annual Safe Harbor Notice (detailing the 3% safe harbor contribution for the year) to only select Particpants and not all participants, has the required notification been satisfied? Would the contribution be due for all possible participants or only for those who received it? Thanks Stan

Excuse me but is has been a while since I worked on an Offset Arrangement (DB Plan offset by contributions to a DC Plan). In a DB Plan where there are different benefit formulas for different groups, will I need to pass 401(a)(4) for the DB Plan alone before I apply the offset? Or do I only have to pass 401(a)(4) in a combined arrangement with the DC after the offset is applied? Thanks for all your help.

I have an Employer that has given a Partner a K-1 with both self employement income as item 14 A, and Non-farm optional income as item 14 C. Are both to be considered as earned income in a Defined Benefit Plan? Thanks for all your help.

Does the Plan contain "mistake in fact" language that you may follow to return the monies in question? I would think that would be guidance needed to allow for returns and forfeitures that result from this type of issue.

Any chance the participant could have purchased the policy as an arms length transaction before he made the payment?

Does your plan allow the plan administrator to declare interim valuation dates? We would have to amend the plna to allow for an interim valuation date. Must we process participant distributions from Annual valuated plans based on 12/31/07 values? My thought is that we could if we can say the trustee is exercising his/her fiduciary responibility to protecting the gain/loss in other's accounts by not processing distributions at this time based on 12/31/07 values. Would this be a valid reason for putting off participant distributions till 12/31/08 valuations are completed. Does the Plan state that a distribution takes place after the year of termination, or as soon as administratively feasible following the year of termination? Perhaps it states that the distribution takes place in the plan year following the plan year of termination? I would think that the operational aspect of the Plan would trump the "trustee's discretion".

Shakespeare was right.... First thing we do is kill all the lawyers.

The $15,500 is the 402(g) amount which is based on the calendar year for an individual. An individual may only deduct up to $15,500 from compensation earned from any and all employers in the calendar year. Thus, it looks like you have a problem that will need a refund as a 402(g) violation.

Wouldn't the money coming from the properties be considered "passive income" and thus not eligible for Plan use?

My first take wold be that the if the Trustee had waited until the payoff of a previous loan was complete (and thus not paid with an NSF), the third loan would not have been made. It looks to me as if the third loan is actually a distribution from the Plan. If the Employer does not wish to amend the loan policy to permit 3 loans per participant, we have a distribution of the amount taken as the third loan. I do hope this person qualifies for some in-service distribution procision of the Plan.

As the poster regarding Government says on Despair.com.... If you think the problems we create are bad, just wait until you see our solutions.