Guest Crystal Posted October 20, 1999 Posted October 20, 1999 Has anyone ever received a request to accept a rollover for a terminated participant's PRIOR employer's plan? Adoption agreement is pleasantly vague - says Admin Committee has sole discretion in determining whether to accept rollovers (they currently accept r/o's from any employee - did I just answer my own question?). I can't imagine that would be required but I wanted to run it by this gang of experts!
Guest PLHart Posted October 20, 1999 Posted October 20, 1999 I believe you did just answer your own question. Plan states it will accept rollovers from any employee and I'm sure you will find the definition of "Employee" in the definitions section of the plan document.
Guest Crystal Posted October 20, 1999 Posted October 20, 1999 PLHart - thank you! Sometimes it's nice to have someone else confirm my line of thinking!
david rigby Posted October 20, 1999 Posted October 20, 1999 I don't think it is that simple. Just because the language is vague does not mean you can't interpret it. That is, if there has never been a fact situation like this one, then you do not yet have a precedent. I would be surprised if the Admin Committee would think it is in the best interest of the Plan to accept a rollover from a term EE. Seems counter to the purpose of the permitting rolloevers in the first place. From my perspective, if the EE is termed, she/he is no longer an EE, so why do you think the plan should accept it? I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
Guest Crystal Posted October 21, 1999 Posted October 21, 1999 I don't think they should accept it. The plan's definition of "employee" requires that one be employed, therefore I saw no need for them to accept funds from a term'd participant. No precedent in this plan or any other I've dealt with for that matter.
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