Spin Off Help.

[Guest buxbaum2]

Good Morning All,

I just accepted a position as a Benefits Specialist with a company just is in the process of being spun off. The parent company who is a large conglomorate decided to spin our division off in an effort to concentrate on a different product line. We are currently in the process of transitioning our 401k, Pension, and H&W benefits to new vendors and one of my responsiblities is to coordinate this conversion. The majority of my experience in the past has been with 3rd party vendors in established benefit plans, so I have limited experience with starting new plans from scratch. We are going to be modling our plan after the parents companies existing plan and then making additions and subtractions to make it our own.

Does any have any suggestions or best practices that could help easy my transition into the this new position, in addition to help me learn so that I can make the transtion as smooth as poissible?

Thanks.

Adam

[GBurns]

I think that the first thing that you have to do is to understand that which you now have.

Then, decide what it is that you want and whether the changes, if any, are viable.

For example, you stated "We are currently in the process of transitioning our 401k, Pension, and H&W benefits to new vendors " To me that means a change of service providers not a change in plan.

Then, you later stated "I have limited experience with starting new plans from scratch". Which you explain will be modeled after "the parents companies existing plan ". What plan will you have the day after the spin off?

If you are transitioning to new vendors, under which plan will they be providing services? The old parent company or the new company? If the new company, Shouldn't you already have a plan? If you transition the vendors, With whom will they have a contractual arrangement and for whom will they be providing services? If benefits are provided to the employees, How will the benefits be delivered on a non taxable basis without a Plan, PD, SPD Adoption Agreement etc etc that are effective before the incurring of expenses?

Your phrasing makes me think that it is your opinion that changing service providers is the same as starting a new plan.

You also stated "my experience in the past has been with 3rd party vendors.." This makes me wonder what you regard as "3rd party vendors"? Aren't these service providers, that you are changing, not 3rd party vendors?

To me the whole scenario is a mess, but then again I might just be misreading or maybe you did not explain sufficiently. In any case what you posted needs review.