Madoff impacted plans

[mwyatt]

So far have two plans impacted. One in particular was valued using an end of year val date and also had plan year that ended 11/30/2008. As of that date, everything was fine in the world (and the statement from the shaky investment manager had it as such). As we all know the curtain was pulled back 10 days later. Working on the PBGC and DOL notifications, but just wondering what the heck to do with the valuation for ye 11/30/2008. Know we're not supposed to reflect anything after the val date, but that seems a little too slick to me (especially since this client had probably 97% invested).

Other plan at least had losses through Lincoln Financial (Rye Investment) with amount under the $500k cap. Other one is trashed. Any advice?

[Ron Snyder]

Resign.

[david rigby]

Cop out.

Just do the val. You did not create the bad news, just report it.

If the sponsor is also the trustee, he/she should be talking to his ERISA attorney about the word "fiduciary".

BTW, any possibility that the plan might have been frozen?

[mwyatt]

Was frozen a couple of years ago (thank God). Of course, the plan sponsor has now brought up the fact that he had his housekeeper on the corporate payroll for the last 20 years, which he never informed us of. The gifts just keep on giving. Hello VCP/PBGC.