new comp amendment after PYE

[Santo Gold]

PS Plan with a 7/31/10 PYE. The plan has a 1000 hours requirement but no last day requirement. SS integration used for PS allocations.

Q1: Can the 7/31/10 plan year be amended after 7/31/10 to allow for new comp? There would be 2 rate groups, one for owners (all HCE) and one group for everyone else. If permissible after PYE, what is the deadline to make the amendment (is it 2-1/2 months after PYE?)

Q2: If it is too late to amend the 7/31/10 PYE. could we amend the 7/31/2011 PYE now (10/2010) before anyone has 1000 hours worked in the current plan year?

Q3: Performing a 180, could we amend the 7/31/10 to pro-rata now (after 7/31/10)? doing so would only "hurt" the HCEs since it would take a greater overall PS contribution for them to achieve what they would have received if SS int was used?

Thanks for any comments.

[Tom Poje]

can't amend after plan year end. one such example can be found in Rev Proc 2005-66, which, as I recall was basaed on a discussion when a plan could switch from prior year to current year (or vice versa testing). You are talking about a discretionary amendment, which must be done before plan year end.

there is no problem amending a plan before someone has accrued a benefit. so it doubtful anyone has worked 1000 hours yet (unless, like me they have put well above that trying to get out the 5500s )

but watch out, if your document had 0 hours for retirees and someone falls into that category you are out of luck.

[Santo Gold]

Thanks Tom. Try to keep those hours worked reasonable next week OK?

[Tom Poje]

yeh, but then I have to run off to the Land of Oz (or is that ASPPA?) for the Conference ...To confer, converse and otherwise hob-nob with my brother wizards in the pension world.