waid10

Is my employer required to send me a notice each year that tells me how much I am vested in my defined contribution plan benefit? If so: 1. When is that notice required to be sent? 2. What is that notice called? 3. Is there any guidance on what that notice must provide? 4. Lastly, is it okay for my employer to send me a "generic" notice that just describes the general vesting provisions of our plan? Or are they required to send a notice customized to my particular situation? Thank you.

I am a participant in a governmental 457(b). May I, at age 59 1/2 rollover my 457(b) into an IRA while still employed by the city? If so, can you point me to the guidance that indicates this? Thanks

You are correct that our document says that forfeitures reduce future employer contributions. Can you further explain how the deemed contribution would work?

Hi. We are terminating our DC plan. We have a suspense account with forfeitures. We want to distribute the forfeitures to the participants. The plan document is silent as to how to allocate the forfeitures. Is there a rule? How is this normally done? What proportion is proper? Yes, there is a rule: no duplicate posts. Everyone see here - http://benefitslink.com/boards/index.php?showtopic=43194

We are terminating our DC plan. We have a suspense account with forfeitures in it that we want to distribute to participants. The plan document is silent as to how to do this. What is the rule in how to allocate the forfeitures? Thanks.

So it sounds like you are saying that we have the discretion to determine how we will allocate the forfeitures (i.e., there isn't a set formula or way it must be done). Is that correct?

We are terminating our 403(b) Plan. We have a balance in the plan's forfeiture account. We want to distribute this to the current plan participants. The plan document is silent as to how to allocate these amounts. How is this done? Thanks.

I received additional information on this employee. The corporate parent's EIN is on the W-2. The difficulty is that one job is her main job, meaning that she has a set schedule. This is the job that controls her job status classification. For the other job, she is classified as "PRN." This means "as needed." In other words, there is no set schedule. Her hours in the second job are all over the map. One month, she could have 40 hours working the second job. Another month, she could have zero.

Hi. We have an employee that is working two positions within the organization, but for two different sister corporations under the same corporate parent. The parent is the paymaster. On a weekly basis, the employee is working 18 hours in one position and 20 hours in the other. So she is part-time for both. However, her hours collectively are full-time. Can anyone direct me to regulations or guidance on how to handle health & welfare plan eligibility for this situation? Status is part-time, but total hours is full-time. Does she receive full-time benefits or part-time benefits?

Hi. We will be scanning and electronically storing HR related documents as well as working towards on-line new hire enrollment and on-line status changes. Can someone point me to guidance on what are the issues we need to consider as we go through this process? What documents should be maintained with original signatures? As we attempt to go paperless, how long should we hold on to old enrollment forms? Other questions/issues I haven't thought of yet? Thanks.

Hi. We will be scanning and electronically storing HR related documents as well as working towards on-line new hire enrollment and on-line status changes. Can someone point me to guidance on what are the issues we need to consider as we go through this process? What documents should be maintained with original signatures? As we attempt to go paperless, how long should we hold on to old enrollment forms? Other questions/issues I haven't thought of yet? Thanks.

Does anyone know how the employer opts out of the subsidy (so that the subsidy goes directly to the employee and bypasses the employer)? I can't locate any information on the opt-out process for Virginia. Thanks.

The Children's Health Insurance Program Reauthorization Act (CHIPRA) of 2009 took effect on April 1, 2009. The law provides that electing states will provide a premium assistance subsidy to qualifying children. Employers have the ability to opt out of providing this subsidy. If they do so, the subsidy goes directly from the state to the employee, and bypasses the employer. Does anyone know what the process is for opting out? Also, if we don't opt out, how do we know who qualifies for the subsidy and how much the subsidy is? We are in Virginia. I have read that Virginia is participating in the subsidy piece. However, I have been unable to find Virginia-specific information on the subsidy process (and opt-out process). Thanks.

We are almost ready to send our annual funding notice for the defined benefit plan. However, we cannot locate addresses for a handful of participants. We are searching. If we cannot locate them, what should we do? What is our responsibility regarding these participants?

Does anyone know what the process is for opting out? Also, if we don't opt out, how do we know who qualifies for the subsidy and how much the subsidy is? We are in Virginia. I have read that Virginia is participating in the subsidy piece. However, I have been unable to find Virginia-specific information on the subsidy process (and opt-out process). Thanks.

The Children's Health Insurance Program Reauthorization Act (CHIPRA) of 2009 took effect on April 1, 2009. The law provides that the DOL and HHS will work with state Medicaid and CHIP agencies to produce model notices by April 1, 2010. And employers are required to provide employees with the initial notice beginning with the first plan year that begins after the date the initial notices are issued. I am confused. I thought that employers needed to issue notices now to employees. Is that true? Or can employers wait until the model notices are issued? If they have to notify now, what is the deadline to issue the notice? And are they left to draft their own notices? Thanks.

So here is what I am thinking: 1. Do the plan termination mid 2009. 2. Pay the 3% non-elective through the date of termination. 3. Perform ADP Test since safe harbor status ends prior to 12-month period. I still am not sure if I need to do the EGTRRA restatement prior to the termination. Any thoughts?

The Plan currently complies with PPA and EGTRRA, with stand-alone amendments tacked on. But I wasn't sure if the restatement was required in this case (since I will terminate the plan prior to the end of the restatement deadline).

Client is terminating because of economic difficulties. So I am trying to keep fees as low as possible. If I don't need to restate for EGTRRA, it would save them in legal fees.

A client with a safe harbor 401(k) (3% employer nonelective contribution) wants to terminate the plan. I have several questions related to this termination: 1. Can the plan be terminated mid year? 2. If so, is the nonelective contribution made through the termination date? That would seem to violate the 12 month safe harbor rule. Or is the nonelective contribution based on full year compensation? If the nonelective contribution is made through the end of the year, how do you do the termination mid year? Would it be easier to wait until year end? 3. If the termination is done during 2009, does the Plan still have to be restated for EGTRRA? Or can we escape the EGTRRA restatement if we terminate prior to April 30, 2010? Thanks.

Hi. Superintendent of a School Board has an employment contract. As part of his contract, there is a paragraph that states that the "School Board will make a contribution for the Superintendent's benefit to an arrangement invested in an annuity selected by the Superintendent and satisfying the requirements of Section 401(a) of the Internal Revenue Code, in the amount of $10,000 with Superintendent being vested immediately." The paragraph goes on to state that the School Board will make this contribution annually. It appears to me that this paragraph is creating a governmental plan with one participant. I think this is permissible due to the governmental plan's exemption from the nondiscrimination and minimum participation rules of ERISA. But what about the plan document requirement? Any thoughts?

I am a bit of newbie in the health insurance world and would appreciate any thoughts anyone may have. Hospital is switching from a fully insured health plan to a self-funded plan. In the past, non-hospital owned entities (various physician groups, emergency room group, free clinic, etc.) participated in the fully insured plan by paying the COBRA premium (I am not sure if this was really permissible). With the change to a self-funded plan, can those non-hospital owned groups continue to participate? If so, do you just continue to pay the COBRA premium? Or bill them for actual claims paid for those groups? What if one of the non-hospital groups has a large amount of claims and it exceeds the COBRA premiums - does the hospital have to eat the excess? I am primarily concerned with the funding issues right now. We have counsel looking into the Stark/inurement issues.

We have a nonprofit parent that sponsors a 403(b) plan and a for-profit subsidiary with a 401(k) plan. I am being told that our 401(k) fails the 410(b) coverage test because the employees in the 403(b) plan cannot participate in the 401(k). I am nearly certain that there is an exception and the employees in the 403(b) don't have to be counted in the 401(k) coverage test. Am I correct? Can someone point me to the law/regs on this? Thanks.

Employer has hired consultant to create a web-based retirement calculator to assist participants with calculating how much they should save to achieve a desired standard of living upon retirement. The consultant will charge a one-time set up fee and ongoing annual maintenance fees for this service. The calculator will provide information for both DB and DC plans for Employer. Can the expenses related to this be paid from plan assets? If so, how allocate among the DB and DC plans? Thanks.

Hi. I am working with a profit sharing plan that was not updated/amended to comply with changes in the law over the last 10 years. Upon preparing the EPCRS filing (VCP), we discovered that 5500s were not filed during that 10 year period either. I am torn about whether to go to the DOL first (using their DFVCP program) to get the 5500s straightened out, and then file the VCP with the IRS. Or whether I should skip the DOL and just file the VCP filing with the IRS and ask for the mercy of the IRS on the 5500s. Any thoughts?