Sch. A

[doombuggy]

I am drafting up worksheets for a plan I have with the following seniaro:

Plan's $$$ are still with the same investment carrier, but during the 2001 plan year they changed contract types (from unallocated to allocated). Their contract number changed, and I am thinking that I need to submit two Sch. A - one for the old contract and one for the new one. When drafting the Sch. A for the old contract, the only problem I am having is where to place the liquidation amount. I would not pick 6e(1) Benefits Paid, as the $ was not paid out to the participants. I was considering line 6e(3), as this $ was transferred, but now I am not so sure. The participants were given new enrollment forms to fill out when this contract change was done, and their investment choices went from like 5 to 55 funds, so I am sure some of the money that left this GIC fund in the old contract went ot other funds in the new one. Where would you sugest I place this transfer? Thanks for the help!

[JohnCheek]

An unallocated insurance contract is an investment of the plan, but an allocated contract is owned by the participant. In an allocated contract , the payment of the premium is a benefit expense. Your transfer from unallocated to allocated is, in effect, a liquidation of a plan investment to pay a benefit.