pb5350

Thank you, Bob! I had sent one package on Friday and received a "delivery exception" yesterday stating the office was closed. However, this morning, I received a confirmation that the package had been delivered (and signed for), so perhaps this is related to the recall. Thanks again!

Most IRS offices are closed. I have a few DB plans for which we will need to file a Form 5307 application. The IRS website says they "continue to process determinations for employees plans," but it's not entirely clear what that means. (https://www.irs.gov/newsroom/irs-operations-during-covid-19-mission-critical-functions-continue) Obviously, I will push the application submission dates off as far as possible, but does anyone know if U.S. Mail and/or FedEx/UPS packages are currently being delivered/accepted? Thank you!

I am restating a traditional defined benefit plan from a prior provider’s document to our pre-approved volume submitter document. The plan credits all service with related employers (i.e., members of a controlled or affiliated service group) for eligibility and vesting. However, for purposes of benefit accrual, service with related employers is counted only from the date the related employer adopts the plan (or, if applicable, from the date an employee transfers employment from a non-adopting related employer to the plan sponsor). The IRS did issue a favorable determination letter on the document prepared by the prior provider. I suspect the application was filed using a Form 5300, but I do not know for certain. (The document is in an individually designed format vs. on an Adoption Agreement.) Under the terms of our pre-approved volume submitter base doc, all service with related employers is automatically credited for all purposes. (I see this was a required provision under Section 14.03 of Rev. Proc. 2015-36.) If we move forward with the restatement, I understand the provision limiting credited service for benefit accruals will negate reliance on the IRS advisory letter. Since the plan already has an FDL, I don’t believe there is an option to file for a new letter using a Form 5300. The question I have is this: could we reasonably argue that this provision is a “minor modification” to the pre-approved volume submitter language such that we could apply for a determination letter using Form 5307?

I have a question regarding participant fee disclosures and corporate fund actions (i.e., actions taken by the fund issuer to rename, merge, or otherwise change one or more of their funds). Historically, when the action affects the investment information provided in the notice, we have produced an updated fee disclosure and sent it to the plan sponsor with instructions to distribute to participants. Corporate actions happen almost weekly, and some of our clients have complained about having to distribute updated fee disclosures multiple times throughout the year. Some advisors/service providers I’ve talked to have stated that it’s “not technically required” to provide an updated fee disclosure or other notification of a corporate fund action, but I can't seem to find any supporting guidance or analysis that excuses the plan sponsor from having to notify participants when the investment information in the disclosure changes due to a corporate action. Can anyone point me to guidance or analysis on this issue and/or would you be willing to share the approach you take to assist plan sponsors with notifying participants of a corporate fund action that affects their plan? Thanks and Happy New Year!