403(b) and DFVCP

[Guest CRC02]

A 403(B) sponsor has not filed 5500s in past years (and was required to) and wants to use the DOL's Delinquent Filer Voluntary Compliance Program.

As the 5500 does not require a 403(B) to fill out lines 6 or 7, which set forth the number of plan participants, how does the DOL determine how many participants the plan has for the purpose of determining whether it is a large and small plan? My guess is that the plan sponsor should indicate it in their cover letter, and use the definition of participant used in the 5500 instructions to determine how many participants there are, but I am not sure.

The definition of participant used in the 5500 instructions specifies that individuals that have separated from service and who are or will be receiving an annuity are not considered participants. Does this apply to annuities from a 403(B), where a participant can have an account balance, or only to traditional annuities purchased for a fixed sum in which there is no account balance?

Any help would be appreciated!

[mbozek]

403(B) annuity plans are subject to minimal 5500 filing because the plans have no assets-- the annuity benefits are owned by the employees. There is no distribution of a payment upon termination or death because the account is owned by the employee. I dont think that an ssa form is filed by a 403(B) plan.