Guest halka Posted October 8, 2004 Posted October 8, 2004 Prior to sponsor paying QNEC to plan, sponsor files bankruptcy. Owners of sponsor are plan participants and also the plan fiduciary. Other than pursuing collection of the QNEC in the bankruptcy or suit against plan fiduciary, is there any (simple) procedure or ruling allowing/mandating transfer of the QNEC amount from the owner/fiduciary/HCE plan account to the NHCE accounts? Thanks for any suggestions.
Guest b2kates Posted October 9, 2004 Posted October 9, 2004 Other than an authorized fiduciary placing a proof of claim in the bankruptcy filing, NO!
Kirk Maldonado Posted October 10, 2004 Posted October 10, 2004 halka: What is your theory that the employer was obligated to contribute the QNEC? I've never seen a plan that required that the employer contribute QNECs. Kirk Maldonado
SoCalActuary Posted October 10, 2004 Posted October 10, 2004 Was QNEC required in document? Was it a safe-harbor qnec with advance notification? If the QNEC was not made, then you have general ADP/ACP test. If it failed, then you have remedies to pursue, including refunds, disqualification, etc. My advice: start taking with benefits administrator about consequences of no qnec.
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