Funding issues among others

[dmb]

A client (one owner and one common law employee) has a calendar year DB plan effective 1/1/02. The 2002 work was completed on a timely basis based on a letter from the client stating that he made the required contribution (also on a timely basis). As an aside, this client has outstanding fees of almost $6,000 and we have not done any 2003 work since requesting the census and assets in January, 2004. We have found out that the client did not make the 2002 contribution at all, he has not been at his medical practice (he is on extended medical leave), his house is dark and mail is piled up. All that being said, what are my options with regard to funding and/or terminating the plan or our services?? Thanks.

[Effen]

You may want to give Actuarial Board for Counseling and Discipline (ABCD) a call. http://www.abcdboard.org/ They should be able to give you some advise.

[Blinky the 3-eyed Fish]

Just write the client a letter stating your services are terminated for lack of payment. Of course if this advice is wrong, I suppose I should call the number too, because that's what we do with our clients.

[dmb]

Our initial solution was the same as Blinky, but we did contact the ABCD. Thanks for the responses.

[david rigby]

If you have any hope of recovering a portion of your outstanding fees, an alternative might be a written suspension of your services, pending payment. Resignation will probably be equivalent to giving up on collecting your receivable.