SSRRS

Thank you very much David Rigby and Jeff Hartmann (including the extra clarification).

Hi, 1.Are all employees included for the 25 count or can we exclude union.employees. ? 2. Are employees that work less than 1000 hours included for the 25 count? Thank you.

Hi, AN Employee terminated with an ACRUED Benefit of $844. His DC account balance is 44,000. He is 45 years old. The 844 is due at age 62 (NRA). Since the AB of 844 is due at age 62, is it proper to discount the 844 (AB) TO HIS CURRENT AGE OF 45 (will use plan equivalence for this). This gives an accrued benefit of 263 at his current age of 45. Next, to convert the dc account to annuity based on the APR at his current age of 45, ie 235 monthly. And then finally to use the dc annuity of 235 to reduce the AB of 265? Thank you very much

It would be greatly appreciated for any insights and help with the above. Thank you.

Thank you Lou S. The Document says he shall be credited with a year of service for each service computation period for which he is credited with at least 1,000 hours of service. Is this 1000 hour requirement prorated to 250 hours for the three month short plan year?

A 9/30 , fiscal year end plan switched to a calender year end after 9/30/14. To make this change, a short plan year was created from 10/1/14 until 12/31/14. The plan benefit formula is 2% for each year of service. Question: For the three month plan year is each employee credited with 2% for this additional "year of service"?. Thank you very much.

C.B. Zeller, thank you very much and thank you for the heads up regarding 2009-22. This plan does not make contributions and the average will not need to take into account the contributions. Thank you. Your time and insight is much appreciated.

Hi, 2017-56 states that one of the three asset valuation method changes automatedly approved is: (2) A change in asset valuation method to a method that determines the value of plan assets as the average of the fair market value on the valuation date and the adjusted fair market value of assets determined for one or more earlier determination dates, as described in § 430(g)(3)(B) and the regulations and other published guidance thereunder. (See § 1.430(g)1(c)(2) and Notice 2009-22, 2009-14 I.R.B. 741.) The asset value determined under the method must be restricted so that it is not greater than 110% and not less than 90% of the fair market value, as described in § 1.430(g)-1(c)(2)(iii). Based on the above, a change to using a 3 year average as the value of the assets for the val (ie a 3 year average calculated based on the fair market value of the assets as of the current val date plus the prior two years fair value of the assets) would be automatically approved? Thank you.

QDROphile , Bird, Mike Preston, and Belgarath, thank you very much for all your valuable insight on this.

Thank you. In addition to the TPA not being required to provide the information, is the TPA legally allowed to provide any information? Thank you.

JackS, thank you very much!

Hi, If a plan participant (active, or terminated employee) requests information regarding a qualified DC Plan that a company sponsors.1 Who is required to provide the information, the TPA or the plan sponsor/administrator (ie the client)? 2. Is the TPA prohibited from providing any information since the TPA is not the sponsor/administrator? Thank you.

Thank you . Your vast knowledge and help is much appreciated. Yes, the auditor is questioning why the contract value was used. In.defense, asset smoothing is allowed even though it is not the actual current value. In addition, if the plan is overfunded and faces a possible reversion and excise tax, using the larger contract value actually is a more accurate indication of the potential reversion that the company might face down.the line.

Hi, A DB plan is invested in numerous annuities. A FASB report was prepared and the fair value of the plan assets used was based on the gross contract value, as opposed to the contract value less the withdrawal charge (surrender value). 1.Is this ok or should the value be the surrender value? 2. If the plan is overfunded either way is this an immaterial issue? Thank you.

Thank you Effen for your clear and detailed insights. This particular case invloves an NHCE; however, your point about non-discrimination is good to be aware of for other cases.

An employee was excluded from a DB Plan for the past three years (backed by plan document). The plan met 410(b) and 401(a) (26) without having to include this employee. For the current year (and forward) the employee will be included. The benefit formula is based on service. The employee was not excluded based on job classification or union status etc, rather he was excluded by name. If the document states that benefits will not accrue for years that an employee was part of an ineligible class, will the employee only accrue a benefit for the current year and not for the prior years of service (or now that the employee is a participant he will accrue benefits for the prior years as well)? Thank you for any insights on this.

Company A was sold in an asset sale. Thank you Lou S.

jpod, thank you very much. Yes, this is fact critical., however, the fact that you have pointed out that this is a controlled group brings clarity.

Hi, I would greatly appreciate insight on this matter. Client had a company "A" (since 09) and a DB PLAN for company A since 2012. In March 2019 he sold "A" --however, corporation is still in existence and its only asset is aprox 10,000 in cash. In April 2019 he set up a new corp "B" (set up a corp and purchased the assets of a business). Company B has new employees and does not do the same service as '"A" corp did. 1. Is he allowed to continue the DB Plan of 'A" for company "B'? (so that he has prior service and benifits from "A" and salary average from "A")? 2. If yes, is the owner the only employee eligible to participate in the plan for 2019 (as he has a year of service from the prior company and is the ONLY employee that will have 1,000 hours for 2019). Thank you very much for any insight on this matter,

Thank you very much Lou and CuseFan for your insight and help.

Thank you very much, Lou. He became non union on 8/31/17, If the entry dates are 1/1 and 7/1 he would not enter the plan until 1/1/2018. Correct?

Hi, A DB Plan excludes union employees (covered by collective bargaining agreement). An employee was hired by the company on 3/11/15 as a Union employee and was covered under their pension plan until he moved to a Non union managerial position on 8/31/17. If the plan's eligibility requirements is 12 months, would he not enter the plan until 12 months following 8/31/17 (1/1/19 due to entry date) or would he be eligible immediately on 8/31/17 due to the service for the company since 3/11/15 (ie using the service while a union employee). Thank you.

Thank you Mike.

If husband at age 70.5 elected a 100% J&S annuity and passed away can the surviving spouse now take a lump sum that is equivalent to her receiving a monthly annuity (ie lump sum of the 7,500 monthly that she is supposed to receive)Thank you very much.

Thank you CuseFan for this important information.