Guest jim williams Posted April 10, 2002 Posted April 10, 2002 We have a client who anticipates issuing salary cuts to their employees. The Plan allows for modifications in salary deferral elections effective the first day of each calendar quarter. Would a reduction in salary be an exception that would allow participants to modify their elections prior to the next quarter?
mbozek Posted April 10, 2002 Posted April 10, 2002 Just amend the plan to allow employees to change their elections on a more frequent basis e.g., monthly. mjb
Guest jim williams Posted April 10, 2002 Posted April 10, 2002 We just amended the Plan from allowing modifications at anytime to quarterly effective 4/1/02. For administrative purposes the client wants to keep the modification dates at quarterly.
mbozek Posted April 10, 2002 Posted April 10, 2002 the er must follow the terms of the plan. That is why the plan should be amended to permit more frequent transfers. mjb
Mike Preston Posted April 10, 2002 Posted April 10, 2002 Amend the plan to provide a one time election on a specific date in addition to the general (quarterly) dates specified.
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