Top Hat Plans -- Plan Numbering Requirement?

[Guest JSP]

I contacted an individual at the DOL today about top hat filings for NQ plans. He mentioned that each plan included on the statement must have a unique plan number, and that the number should coordinate with all of the plans sponsored by the employer. For instance, if the employer established two plans in prior years, and then establishes a new plan effective January 1, 2008, the statement should indicate that the new plan is plan 003. He said it also makes sense to name the plan, although naming the plan is not required in the regulations. We have never numbered our plans, but have simply identified them by unique names. Please let me know if you have any thoughts on his understanding of the cumulative numbering requirement. Thanks.

[jpod]

My one thought is that the individual you spoke with at the DOL doesn't know what he's talking about. Read the reg.; it's very short. No need to do anything not required by the reg.

[Guest JSP]

I agree. I had the regs in front of me as I spoke with him. I think he may be interpreting the numbering system from 2520.104-23(b)(1), which provides the statement must include "a statement of the number of such plans and the number of employees in each." My reaction was like yours. I don't see that language as creating the need to number each top-hat plan ever installed by the employer, and to extend that numbering system to new plans.

[Guest Kabert]

One more wrinkle -- I would guess that a deferred comp plan that doesn't do the 104-23 letter and, thus, is (or should be) filing a Form 5500, would need a plan number (001, 002, etc.) for that filing. I recall a section in the DOL's delinquent filer (DFVC) program guidance about doing a DFVC filing for deferred comp plans that failed to do a timely 104-23 letter. Anyway, this is the only other reason (other than that mentioned already) that the DOL could think a number is needed. Besides, that I can think of, a plan number is used only for reporting and disclosure purposes -- either on IRS or DOL filings or stated in the plan's SPD (which most deferred comp plans don't have).

[Guest JSP]

Thanks for your response. We have decided not to make any changes to our prior practice. We will continue listing the name of the plan, but not assign a number to the plan.