Annual valuation for pooled funds

[kwalified]

Where does it state in black and white that a plan only has to provide an annual valuation to participants with pooled accounts and distributions can occur based on that valuation even if the market has increased considerably since the plan year end?

Thanks

[QDROphile]

Perhaps the plan document.

[BG5150]

^ under the valuation section

[ESOP Guy]

Yup, plan document.. It will describe how the accounts are measured and when they change. It will define the valuation period(s). The distribution section of the plan document will tell you how to pay someone including what account balance the plan pays.

So is the person(s) who seem to keep generating this question from you as concerned that people were paid in late 2008 on their 2007 balance?

[kwalified]

We have looked. Article V and VI in a Mass Mutual prototype. It's not specifically referenced. I know I have seen it in writing somewhere.

[ESOP Guy]

Not trying to be insulting here but since I don't know the specific document and you are unclear which part of the prototype you are looking at.

Parts of this will be only found in the base document. So you need BOTH parts. (Sorry if that is obvious)

You should be able to find in the definition section a definition of the Allocation Date. There is a good chance the allocation date definition just references what is chosen in the other part.

In some part it has to tell you how you allocate earnings. The base document will most likely say it will tell you that you only allocate earnings on an Allocation Date. In this case these is only one Allocation Date.

In the distribution section of the base document it should tell you that you pay person their balance as of the last Allocation Date.

So if 12/31 is the only allocation date and you only allocate earnings on that date and you pay the balance as of the last allocation date you get your black and white.

If that doesn't help someone who has worked with the Mass Mutual prototype will need to speak up. Although my experience says that Mass Mutual has experts on their own documents. Everyone who puts out a document has such people-- so my guess is they have them also.

[Bird]

It's almost certainly in the adoption agreement, since it's generally going to be tied to the type of investments (pooled, probably daily-valued, or self-directed, probably annually valued).

Something like this (from Ft. William):

3. Valuation Date

Enter Valuation Date:

a. [ ] Last day of Plan Year

b. [ ] Last day of each Plan quarter

c. [ ] Last day of each month

d. [ ] Each business day

e. [ ] Other: (Must be at least annually).

NOTE: If H.2a.i or H.2a.iii (404© applies) is selected then Valuation Date must be at least quarterly.

[kwalified]

Thanks for the replies.

I looked at a ASC PPA document and it's a little more clear in section 10.02. Was looking at EGTRRA and just could not find clear verbiage.