457b top hat

[30Rock]

Is anyone aware of legislative amendments needed for a 457(b) top hat plan? I can only think of a couple optional provisions - ie adding beneficiary hardship distributions, and differential pay - the ability to defer from diffential pay.

One is PPA one is HEART, I am not sure what deadlines apply?

[oldman]

For PPA, a plan sponsor may amend the plan to allow for unforeseeable emergency distribution, other than the participant's spouse or dependent. No other PPA provisions are necessary. Non-governmental 457(b) plans must be amended for PPA by the end of the plan year beginning on or after 1/1/09.

Under HEART plans have the option of treating a participant who becomes disabled while performing qualified military service that would be provided under the plan had the participant resumed employment with the employer and then died. HEART also provides plans the option of treating differential pay as compensation for contribution purposes. The only other HEART provision affecting non-governmental 457(b) plans under HEART regards differential wages. Differential military pay is defined in Code section 3401(h)(2), and in general is pay that participants would have received had they continued in employment with the employer for their military service. For plan years beginning after 12/31/08, the differential military pay will be considered compensation under 457(b) plans. Participants receiving differential military payments are still eligible to take distributions form the plan (as a terminated employee), but cannot make contributions for a 6 month period followjng any distribution. Non-governmental plans must be amended for HEART by the last day of the first plan year beginning on or after 1/110.

WRERA suspended 2009 requried minimum distriubtions (RMD) provisions - and the suspensions affected 457(b) plans. Amendments for thsi provision of WRERA are due no later than the last day of the first plan year beginning on or after 1/1/11.

[30Rock]

Oldman

It looks like the PPA and HEART provisions are all optional for a top hat plan so if nothing was elected for 2009 then it would not be too late to amend the plan this year for the PPA provision.

I agree the one HEART provision I forgot was the military distribution under PPA which HEART extended, although not the qualified military provision. This is optional too.

Also -

The disability and death provision does not apply to a employee deferral only top hat plan, because in most cases, the plan will already be 100% vested and employee funde

And the 2009 WREA RMD suspension does not apply to a nongovernmental 457b plan