Conflict of Interest or Pro-Hibited Transaction?

[Andy the Actuary]

I am long-term actuary for a DB Plan sponsored by a not-for-profit agency. The agency pays my fees out of the Plan. Of course, since PPA, the TNC incorporates this fee (expenses are assumed to be the preceding year's).

Anyhoo, the Agency is celebrating its 2,000 birthday and I would like to make a personal donation (from personal, and not business checking account) of say $100 in commemoration of this occasion. Assume the $100 is deminimis relative to my fee.

Anyone have concerns that this gesture could fall under the category of "No good deed goes unpunished?"

[Guest Sieve]

I have no such concern. After all, you're not a client, so why should I?

That aside, however, I don't see how your gift falls within the prohibited transaction prohibitions, unless your gift is really a payoff to the plan sponsor for allowing you to provide services to the plan.

[Andy the Actuary]

You got me!!!

[QDROphile]

Just for fun, read 18 USC 1954 and trust that the feds will use appropriate discretion.

[Guest Sieve]

I really don't think a small charitable contribution to a non-profit client falls within the purview of the employee benefit plan anti-kickback criminal prohibitions, especially since it is de minimus compared to his fees and he hasn't given on a regular basis. That certainly wouldn't prevent me from doing what ATA wants to do--frankly, I've done it myself . . .

[jpod]

But what if the non-profit actually sent a letter to Andy or Andy's firm gently requesting a gift (just like it would do, naturally, for all its other vendors)? Doesn't that put a different spin on the matter? (I do agree, however, that for a $100 gift no further discussion or hair-pulling is necessary.)

[Andy the Actuary]

I was not solicited. I was invited to a celebration and will be unable to attend. Thought a gesture was in order.

[Guest Sieve]

I can think of situations in which there is pressure to give and in which the criminal statue is applicable. But, as you say, not with beanie-capped Andy, since the mere sending of a general request for a contribution (mailed to all friends of the non-profit) or notice of ticket availability to a fund-raising dinner, followed by an occasional small contribution, isn't sufficient--especially where (as I'm sure is applicable to Andy) the donor is charitably inclined and makes many charitable contributions to other institutions.

[Andy the Actuary]

Sieve knows my charitable efforts very well -- Over the years we have made generous donations to numerous relatives!

[Guest Sieve]

And, presumably, you've also made charitable contributions to the St. Louis Blues, since, until this year, you weren't getting much for you money the past 6 or 7 years!!

By the way, is the opposite of Pro-Hibited transaction Amateur-Hibited, or is it Con-Hibited?