PPA Remedial Amendment Period

[IRA]

What is the PPA remedial amendment period for an employer to adopt the adoption agreement of a prototype sponsor that adopted a PPA interim amendment onto its EGTRRA restatement? The vendor is telling my client they need to adopt its own PPA amendment even though they adopted an interim amendment on behalf of all plans.

It seems to me if my client has to do that now, it is too late. Rather, it seems to me that the interim amendment covers it.

Prototypes don't have a PPA RAP that is different from 12/31/09 do they?

Thanks.

[Guest Sieve]

If the PPA amendment was added as a tack-on interim amendment to the prototype by the prototype sponsor by 12/31/2009, then the employer does not need another PPA amendment. But, there may also be a tack-on PPA amendment attached to the EGTRRA restatement itself, simply as a restatement of the prior PPA amendment--but that may not always be necessary, depending on the wording of the first PPA amendment.

The PPA remedial amendment period is the last day of the plan year beginning in 2009, but a prototype sponsor certainly should adopt PPA by 12/31/2009 to cover all its adopting employers.

[Kevin C]

The interim amendments I've seen lately for preapproved plans allow plan sponsors to elect optional provisions, with defaults that apply if nothing is selected. The document sponsor adopts the amendment with only the defaults applying. If the plan sponsor wants to select one of the non-default optional provisions, they need to adopt the amendment themselves.

Is it possible that this client needed to select a non-default optional provision in the PPA amendment adopted by the document sponsor?

[IRA]

No options in either amendment. This is a terminating plan. It may be that the termination department of the vendor has not yet talked with the plan upkeep department.

[Kevin C]

The document provider's amendment for terminating plans probably has language that is not in the PPA amendment adopted by the document sponsor.