JanetM

Depends on what the plan says. It should be spelled out.

We have the same problem on occasion due to some old timers who still have company stock. If we distribute account and there remains funds - we just do another distribution in the same manner as the first. If participant did rollover - we send additional amount to the same IRA/Plan. If they took cash - we send them a check.

DTH - I think I can answer some of your questions by explaining something. I will use some examples - Our Company sponsors 6 DC plans - 4 are in MT at bank. I file 5500 for each plan and one 5500 for master trust (a DFE). The 5500 for the MT lists the asset details. For example - we have 4 common collective (cc) funds (who file as DFE themselves) and we have 2 investment managers who do not file as DFE. On the Schedule H - I can list the cc funds on the line for investments in common collective. The actively managed accounts must be detailed by asset class. The bank (the directed trustee of the MT) does manage one cc fund - a money market fund. They file a 5500 for the cc - listing all the plans or master trusts in the fund. The bank do no file a separate 5500 for each master trust that invests in the cc fund. Does that help?

An analogy - Person has DB account - takes lump sum distribution (signs waiver to get out of DB plan). Rolls the money to 401(k) plan. No J&S provisions follow the funds to the new plan. I think your doctor has this same situation. The part that has you wrapped around the axle is that he rolled into MPPP. Only the funds accrued in the MPPP are subject to the J&S provisions.

Well I am not an ERISA atty - am a CPA. But I agree with jaemmons. Annuity waiver was signed when funds rolled from DB plan. MP has no contributions - nothing to be subject to J&S. I think you could let him roll to IRA. He could have rolled the DB to IRA rather than MPPP and this would not even be an issue.

What amount was listed on W-2?

Good point - I went to their web site to check it out. Looks like they think the "Monday" will make people think - fresh start - new beginning. Yep - they blew this one. Wonder what it will do to their image as a consultant. Leaves the thought "if they did the name research in house - what kind of work will they do for me?"

Did anyone else out there in ERISA land laugh at PwC? They are changing their name to "Monday". I don't know if I want to work with a consultant who is always "Monday".

I agree with B2kates. Our ERISA counsel has approved out policy. When we become aware of a possible QDRO, either from the employee, attorney or soon to be ex, we ask for a statement from the attorney drafting the QDRO saying "a QDRO is pending and to place holds on the accounts". The will prevent loans, hardships and distributions. Since the percentage awarded could easily change from the 50% stated in the draft you have - you should consider B2kates advice - stall until you have a final QDRO. We use a model QRDO - fill in the blanks - approved by ERISA counsel.

If these were deductible contributions going into IRA - you have no tax basis. 100% of the money that came out is taxable.

Many thanks! I really appreciate the help.

The way I see it - the 7a includes all those eligilbe to participate. Those exlcuded classes are not eligilble to participate and are not counted.

Than I may be stuck. The 10/31/01 year end plan was merged into a 12/31/01 year end plan effective 1/1/02. There will have to be an audit for the two month plan, since there won't be any other period that covers that plan for the two months. Next question - the problem is the disclosure notes to financial statements. The plans are in a master trust. The master trust footnotes are in the audited financial stmts. The stmts are to be comparable - per AICPA audit guide. Any suggestions as to the comparable period. BTW - I am the plan sponsor creating the finacial stmts - not the auditor.

Am merging three DB plans into one. Each one has different year end. All three require audit. Question the actuary and auditor are still researching - One plan is 10/31 year end. New combined plan is 12/31. So I have a 2 month plan year for the final filing. On the audit - can we do a 14 month audit - and just attach to both 5500's. You can do this on the front side when first plan year is short. Can't find any information on if you can do this on final plan year. Time is running out - extension of full year ended 10/31/01 is coming fast. Anyone been through this? Provide cite?

What does the SPD say on this? I am a member or our appeal board, we would have denied this due to the wording in the SPD. All our plans have the same sentence, in bold print, in the Eligibility and Enrollment section. "If you or your spouse has a newborn or newly adopted child, the child's coverage begins the day of birth or date of adoption, provided you enroll the child within 31 days of that event." Other language makes it clear that if you don't enroll in this 31 day period you must wait for the next open enrollment. As a member of the board, it is my job to ensure we follow the plan to the letter. We can't allow some and then deny some. It is the responsibility of plan participants to know and follow the provisions of the plan in order to receive benefits. I know it sounds harsh - but that's the way it has to be to stay out of court.

You should check the plan document also. Our plans specifically exclude severence pay.

We have the same issues with HCEs. We limit HCEs to 6% - all others can do 50%. We run preliminary ADP/ACP test in August and have (for the last 7 or 8 years) stopped HCE deferrals effective 8/31. We realize that this in not fair to the lower paid HCE's - but refunds do not make anyone happy. Since we stop deferrals for HCEs- we are planning to just turn on the HCEs who want the catch up.

Thanks for the help. Too bad for me - I am the client. I will be discussing this again (still) with our legal dept. and ERISA councel. At least I can walk into the meeting and give them the worse case senario.

I shall run screaming into the night - It really is worse than I expected. The 990 and trust taxation are going to be the nightmare. The Trust document does not reference what kind of Trust this is under the IRC. Considering that it was drafted by company atty in 1980 I am not surprised. The document does state all assets are to be used for the exclusive benefit of the participants. It also states that in the event of amendment or termination it shall not revert to the employer. There is clause allowing the Trust to pay all reasonable charges and fees, including legal expenses for services rendered to the Trust. Guess the Moral of the story should be: When in doubt, buy assets, not stock.

We recently acquired a company (stock purchase) that has this "plan" - and I use this term loosely. Contributions are paid into Trust at $2 per hour worked. The money sits in the Trust until the insurance bill arrives. Insurance bill for fully insured health/dental benefits is paid from Trust. Trust currently has $280,000 in assets - was put in place in 1980. Since 1996 is has been handled by company in CA. The insurance salesman who handles this for the 22 participants says there is no filing required because the benefits are fully insured. After many hours of frustrating dialogue we have convinced him that interpretation is wrong. 5500 and 990 must be filed. Question to all of you out there - how would you handle this? Am wondering about how far back the filings should go? Is EPCRS good idea? This issue was identified during due diligence - Insurance guy told them nothing needed to be done. Any thoughts? Any Criticism?

One place to find information is the Health Care Financing Administration (HCFA). All hospitals who accept Medicare must submit a Medicare Cost Report annually, not more than five months after the end of the year. This is filed on a HCFA 2552-96. This is avialable under the freedom of information act.

Thanks Pax - I have the summary of it but was wondering if anyone else was dealing with this issue. There seems to be some different interpretations of what is required. Fishing for some feedback...........

I posted this also on DB board - Does anyone work with any companies that are required to report pension liabilities under the new UK accounting standard - FRS 17? I have received different interpretations as to what is to be disclosed in the footnotes for multi-employer plan withdrawal liabilities. If anyone has any information regarding this please let me know.

Does anyone work with any companies that are required to report pension liabilities under the new UK accounting standard - FRS 17? I have received different interpretations as to what is to be disclosed in the footnotes for multi-employer plan withdrawal liabilities. If anyone has any information regarding this please let me know.

I am in Ohio. The policy is written and named the "voluntary educational assistance plan." States " Employees participating in Educational Assistance Program are required to sign a promissory note in order to receive reimbursement from the company." Nothing is stated in the policy regarding interest or anything else. The promissory note is not even signed until you get the reimbursement.