Waiver of DOL DFVCP Program Fees?

[Guest Thornton]

We have been tentatively been retained to file delinquent 5500s for a company that went bankrupt and ceased operations in 2005. The last 5500 filed was filed for 2004. Three plans are involved, with over 120 participants. To make this a really good story, profit sharing plan assets were invested primarily in company stock. Just before the bankruptcy filing, the two trustees were terminated and paid out their account balances with assets other than company stock since the stock was despressed. You can guess the rest.

The trustee in bankruptcy has filed an action against the two former trustees to recover the distributions for the plan participants. We have been retained to file the delinquest 5500s. There plan/bankruptcy estate has sufficient assets to pay us, but not the $12,000 in DFVCP fees and the audit fees. Has anyone had any experience negotiating with the DOL regarding these fees and/or waiving the audit requirement? Perhaps the filing fees could be delayed until a settlement is reached with the former trustees, which looks likely. If we cannot resolve this, we'll probably walk away, to no one's benefit. Thanks.

[Kevin C]

I suggest you contact the abandoned plans person at the DOL office in your region. You can find the office locations and contact info at:

http://www.dol.gov/ebsa/aboutebsa/org_chart.html#section13

They should be able to help you even if the plan doesn't meet the requirements to be in the abandoned plans program. The DOL's emphasis will be on making sure the non-owner employees get what they are entitled to, so they may be able to help you cut a few corners.