fidu

there is a descrepency regarding proxy voting procedures btw the trust agreement and the proxy statement (and potentially the plan document). which prevails. The Trustee was directed in the trust agreement to vote as directed by each participant However, the proxy statement states sent out by the sponsor states that any unvoted shares shall be voted by the Trustee in the same proportion as votes received.

what is the personal liability of individuals acting on behalf of trustee or custodians. can they get fined for willful breach of duty. I think we all agree they could potentially go to jail?

Anyone have a brief overview/link/explanation of some of the features of a cash balance plan. Thanks in advance

and if for some reason the plan administrators violate these rules and blackout without adequate notice, or for a prohibited timeperiod, whats a trustee to do? any specific examples would be helpful

In today's Federal register the DOL issued a final rule relating to ERISA plan black out periods. Anyone able to provide a synopsis/overview on how this effects trustees and custodians of ERISA governed employee benefit plans?? Thanks

thanks for the clarifications. whats "MP" plan?

Didn't get answers on this on the DB board so any help here would be appreciated - Can someone give me the short version of underfunded plans and make up contributions. first, when is it determined? year end? by plan actuaries? for which type of plans typically? and which plans have no underfunding requirements. secondly, if it is determined, (what is the timing test, at anytime?, or as of plan year end?) that the plan is underfunded, what steps are to be taken, within what time frameframe. is there a reporting requirement? penalties assessed? what governs? pbgc? dol? irs? common sense (just kidding on that last one) happy healthy and prosperous holiday season and new year to all. Thanks as always.

Seasons Greetings all. Can someone give me the short version of underfunded plans and make up contributions. first, when is it determined? year end? by plan actuaries? for which type of plans typically? and which plans have no underfunding requirements. secondly, if it is determined, (what is the timing test, at anytime?, or as of plan year end?) that the plan is underfunded, what steps are to be taken, within what time frameframe. is there a reporting requirement? penalties assessed? what governs? pbgc? dol? irs? common sense (just kidding on that last one) happy healthy and prosperous holiday season and new year to all ya. Thanks as always.

Seasons Greetings all. Can someone give me the short version of underfunded plans and make up contributions. first, when is it determined? year end? by plan actuaries? for which type of plans typically? and which plans have no underfunding requirements. secondly, if it is determined, (what is the timing test, at anytime?, or as of plan year end?) that the plan is underfunded, what steps are to be taken, within what time frameframe. is there a reporting requirement? penalties assessed? what governs? pbgc? dol? irs? common sense (just kidding on that last one) happy healthy and prosperous holiday season and new year to all ya. Thanks as always.

yes. that was the one. THANKS

ok folks, i recall a discussion not too long ago regarding responsibilities of directed vs discretionary trustee, but can not seem to find it on the message boards. can anyone steer me to it please!? Thanks

Very much obliged for the input. It is my understanding that the administrator has been providing some less than accurate guidance to participants regarding the penalty. Thanks to all. Enjoy the weekend.

ok folks, there seems to be something that were missing. many many plan administrators are permitting this w/d, not as a loan, but as a distribution, but no penalty. im a bit troubled as to what code section permits this.

The plan administrator informed me that the 20 % withholding DEFINITELY applies to any withdrawal whenever it is made, BUT there is an exemption to the 10% early withdrawal penalty for first first time homebuyers up to a maximum of $10,000 withdrawal. anyone hip to this rule????

thanks to all. so would the 10% be applicable to employee as well as employer match vested amounts in the participants account?

10 percent penalty if you take withdrawal from your 401 k prior to retirement age. Under what circumstances is the penalty waived? i know for financial hardship - first time home buyer exemption? what else can be legitimized to avoid the penalty??? thanks in advance.

Kirk: I respectfully disagree. The DOL advisory opinion stands for the proposition that where a fiduciary (e.g. Trust Company) exercises discretion with regard to plan assets, its receipt of income from the "float" on benefit checks under a repurchase agreement with a national bank in connection with the investment of such plan assets would result in a transaction described in ERISA section 406(B)(1).2. The dol adv op. does not address any requirement to keep assets earning interest at all times which was my question. I agree that one could argue that if the trust company keeps the interest it is a prohibited transaction under under ERISA, but my question relates to whether or not there is an EXPLICIT requirement under ERISA to keep earning interest on plan money. Seems like I am left with the prudent man/investor argument which yields the same result but I was hoping for something more explicit.

thanks. i reviewed the dol advisory opinion but it seems only to deal with prohibited transactions, and does not set forth the requirement that all plan assets must always be invested. any other guidance you may be able to provide would be helpful.

It is my understanding that any and all ERISA governed plan assets must always be invested and can not sit idle. If this is in fact the case, can someone point me to the appropriate section that this is governed by please. Much obliged.

i totally agree. that takes us back full circle. my question was whether the SERP was: A - qualified B - permitted to invest in an 81-100 vehicle without screwing up the preferred tax treatment of the 81-100 fund. since we have now established that the SERP is not qualified, it would jeopardize (pronounced "screw up") the tax preferred treatment of the 81-100 fund. thanks again.

yes. a collective fund which receives its preferential tax treatment pursuant to rev ruling 81-100. the SERP plan has assets held in trust for the beneficiaries of the SERP plan.

nope. it was about whether placing the serp plan's money into a a tax preferred commingled fund would disqualify the fund, not regarding investments in a tax exempt security which, of course they are permitted to do. thanks as always - i agree.

Can a SERP plan invest in a tax qualified fund w/o disqualifying the fund, my inclination is no since it is not a qualified plan but would like second,third opinions please thanks

VEBAGURU - thanks once again. 84-14 was a reference tp the QPAM PTE.

Thanks VEBAGURU: can you offer a bit of clarification on the potential issues you outline. I have taken a stab at what i think you are referring to in each, but would greatly appreciate if you would confirm, deny, or add any additional relevant details. Is the ltd partnership simply an indirect route? It is likely that It would be viewed as such. (is this a 13G reporting issue you are raising??) Is the company to be acquired related in any way to any fiduciary or party in interest? (QPAM issues under 84-14 to facilitate any biz btw the two?) Does Company B do business with the plan sponsor, any other fiduciary or party in interest? (party in interest issue in general??) Is the balance of the ownership of Company B owned publicly or privately held? (not sure where you are going here!! ) Is the purchase of the stock purchase prudent? Is purchasing through the LP prudent? (diversification and prudent man, investor rule under ERISA 404 A(1)© i presume) Who is the General Partner? Does the GP have any relationship with a fiduciary, party in interest or Companys A or B? (affiliate and party in interest issues?) It does not appear that the acquisition would have accounting consequences other than disclosure if the plan is audited. (non erisa issues that create accounting concerns or reporting requirements) thanks again