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Showing results for tags 'benefit'.
Found 6 results
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My question relates to 29 CFR 2510.3-2(b) Severance Pay Plans The Regulations state "the total amount of such payments does not exceed the equivalent of twice the employee's annual compensation during the year immediately preceding the termination of his service." What does the phrase "the equivalent of" mean? Is the DOL referring to the time value of money? Additionally, in referring to the annual compensation, how is that determined? Is the annual compensation the employees previous years salary or is it the salary it would have been if he had continued working? Essentially I'm asking if anyone knows what they mean by "usual rate of compensation". Any thoughts? Thank you!
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The plan does not allow in-service withdrawals at any time. The plan does allow in-plan Roth rollovers. The plan also allows distribution from in-plan Roth rollover accounts at any time. The plan would like to change that so the in-service distribution options for the in-plan Roth rollover account are the same as the rest of the plan (withdrawals from rollover accounts are not permitted at any time). Is the distribution from in-Plan Roth rollover accounts a protected benefit? Can it be completely eliminated so that the in-plan Roth distributions are the same as the in-service distributions? -
How do you calculate the Average Benefit if you are testing the plan on both allocations and accruals. I know if you test on accural, you use the ABT for accuals, and if you test on allocation, you use the ABT for allocations, but what happens if you are passing the rate group testing by testing some on alloactions and some on accurals - what average benefit test do/can you use? Do you have to take the ABT for the employees tested on allocations and do a seperate ABT for those testing on accurals? Thanks for your input
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I have a Cash Balance plan (not covered by PBGC) that is terminated an currently underfunded. 1. There is an emeployee that used to be an HCE, but is no longer an HCE - can we reduce this employee's benefit (pro rata) based on account balance? 2. Do we need to have the owners sign waivers to reduce their benefit? 3. Are we allowed to just reduce all participants benefits pro-rata? -
I have a potential client who's plan document is written as such that the cash benefit is accrued as of the last day of the year (12/31). I was under the impression it could not be accrued on the last day, but had to be before then. (I normally see accrued after 1000 hours, or accrued monthly). Are you permited to accrue a benefit on the last day of the year for a defined benefit plan?
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Must eligible employees (whether deferring or not) under a safe-harbor (match) 401K Plan receive a 5% top heavy minimum contribution if the employer also sponsors a defined benefit pension plan? Can the safe-harbor match be applied toward the 5% top heavy obligation? Thank you.
