KIP KRAUS

William: Yes, TPRA affects the following areas of qualified plans: 1. Matching Contributions for the Self-Employed 2. Excess Contribution and Cccumulation Excise Taxes 3. Involuntary Cash Outs 4. Limits on investment of Elective Deferrals 5. Rollover Contributions 6. Basis Recovery Rules 7. SPD Filling Requirements 8. Electronic Disclosure 9. Antiassignment Rules 10. Prohibited Transacction Exercise Tax 11. ESOPs 12. Government Plans and nondiscrimination Compliance 13. Includable Compensation for 403(B) Plans 14. Nondeductible Contributions Excise Tax 15. Community Property Rights 16. Clarifications regarding SIMPLE Plans 17. Full Funding Limits I would suggest that you find a copy of these provisions. In fact, I have a summary that I can fax you if you will e-mail me your fax number.

STEVE: SECTION 125 (f) SAYS THAT A PLAN MAY NOT PROVIDE "KEY EMPLOYEES" ( AS DEFINED IN SECTION 416(i) (1) OF THE IRS CODE ) WITH BENEFITS UNDER A SECTION 125 PLAN IN EXCESS OF 25% OF THE AGGREGATE OF BENFITS PROVIDED TO ALL EMPLOYEES UNDER THE PLAN. THIS WOULD BE THE ONLY TESTING THAT I KNOW ABOUT. ASK YOUR INSURANCE REP. ABOUT THIS. [This message has been edited by KIP KRAUS (edited 09-28-98).]

Peg: If you go to http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi , which is the site for the Code of Federal Regulations, and read Title 42, Volume 2 Part 417.157 you will find the answer to how an employer must set contributions when offering HMOs together with other Health Plans. I assume this is what you are looking for?

Jeannie: I assume you are talking about how to show prior service for pension purposes? If so, you need to enter an adjusted date of hire to take into consideration Credited Service. For other benefits, such as life, medical, dental etc..you will more than likely need to use the rehire date. Therefore you could end up with more than one date in your files; Adjusted Date Of Hire and Rehire.

Unless there is a Corporate finacial resaon for not doing so, you may want to consider having your health plan carrier(s) change your health plan year to coincide with the calendar year. They should not have a problem with this.

What Brigid says has been my experience from a Benefits Manager's perspective. However, I have worked for an employer who allowed ex-spouses to remain on the medical plans until age 65 or until the employee or ex-spouse remarried. This liberal a policy, I might add, is not very prevalent among employer health plans. If this is the policy of you or your friend's company it should be described in their Summary Plan Description (SPD). If you or your friend are currently covered as a spouse, ask the company benfits person for a copy of the SPD. Unlessd you see it in writing, I wouldn't rely on word-of-mouth from the employer or the insurer.

We have 401(k) Plan that allows us to establish and administer a loan program within the plan. Currently the Company pays loan anitiation fees and annual loan maintenance fees. Even though the Company has always paid these fees, they have always been slient in the bargaining agreement. If the Comapny decides to start requiring union employees to pay for futuer loan anitiation and annula fees, is this change in policy a nogotiable item, or can the Company just make the change? Any labor specialists out there, or someone who has experienced something similar? Any suggestions will be appreciated.