IQPA and 5500 for terminated/merged plan

[Guest Asvedlow]

Facts: A DC plan merged with another existing plan 12/31/99 and thus was terminated effective 12/31/99. The 1999 form 5500 had required the IQPA because the participant count was over 100 as of 1/1/1999. The 1998 filing also required the IQPA so the plan was consistantly over 100 lives (>120 rule). The assets of the terminated plan were not physically transferred to the new plan, Trust, until April 2000. As of 1/1/00 there were no "participants" in the terminated plan however the terminated plan held the assets until they could be moved in April 2000. There will be a beginning balance in the terminated plan however for 5500 purposes.

Question: Do you feel the terminated/merged plan would be required to file an IQPA with the 5500 for the 2000 plan year? DOL seems to be "gray" on this matter. Do you feel the DOL would include in its definition of the participant for Form 5500 purposes people with an account balance who are not eligible under the plan since it is terminated? We do assume that the new plan will be filing a 5500 with an IQPA for 2000 on it's plan.

[rcline46]

If the plans merged 12/31/99, then a final 5500 was filed for 12/31/99. The fact that the registration on the assets was not completed until later is irrelevant. Nothing for 2000.

Unless you are saying the plans were merged retroactively, but that would be illegal, and you couldn't be saying that.

[ERISA25]

If the plans merged 12/31/99, then a final 5500 was filed for 12/31/99. The fact that the registration on the assets was not completed until later is irrelevant. Nothing for 2000.

Unless you are saying the plans were merged retroactively, but that would be illegal, and you couldn't be saying that.

I'm trying to find authority on this point. Can you merge a plan retroactively? For example, if plan year is 7/01/09 - 6/30/10, could you in August, 2010 make the merger retroactive to 6/30/10? If permitted, I assume that would mean that a 5500 filing would not be required for 2010 plan year. In other words, 2009 filing would be the last.