Guest jim williams Posted August 18, 2011 Posted August 18, 2011 Is it permissable for a 412(e)3 plan to use one insurance company to provide benefits under a frozen formula (effective 12/31/09) and to have another insurance company provide benefits provided under a new formula (effective 1/1/10)?
ETA Consulting LLC Posted August 18, 2011 Posted August 18, 2011 Loaded question. You're asking because contracts have to be of the same series. Keep in mind that this is purely a 401(a)(4) issue, and not necessarily a 412(e)(3) qualification issue saying that in no instance may contracts not be of the same series. There are exceptions to the rule and work-arounds in cases where the insurance company no longer issues contracts; especially when there are new employees becoming eligible. This is only the beginning of the thought process; and EACH case is different. Good Luck! CPC, QPA, QKA, TGPC, ERPA
Guest jim williams Posted August 19, 2011 Posted August 19, 2011 Does it matter that the plan is a one-participant plan on behalf of the owner?
SoCalActuary Posted August 19, 2011 Posted August 19, 2011 Does it matter that the plan is a one-participant plan on behalf of the owner? Well, then every participant has the same policy items. Further, no NHCE was discriminated against.
ETA Consulting LLC Posted August 19, 2011 Posted August 19, 2011 Well, then every participant has the same policy items. Further, no NHCE was discriminated against. True, it's just that simple CPC, QPA, QKA, TGPC, ERPA
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