Employer notifies participants that contributions to calendar year MPP

[Moe Howard]

The MPPP document defines "compensation" (for computing employer contribution) ... as "W-2 wages subject to federal withholding".

The calendar year MPPP decides to terminmate by 12/31 of the current year. In August , the employer notifies participants that ... "all benefit accruals will cease on 09/30 and that the plan will terminate sometime thereafter (but no later than 12/31)".

Salary is paid monthly, which means that the salary earned by participants in month of Sept .... will not be paid to them uintil Oct.

MY QUESTION:

Must the "Salary earned by participants in Sept, be included in eligible COMPENSATION" for determining this short-year MPPP required contribution ?

[david rigby]

Probably not. Consider "salary earned in December". If that is paid in January, then it is part of January wages, and would be included in the W-2 for the January year.

However, as is often the case, a careful reading of the terms of the plan may be in order.