jethrasher2 Posted September 25, 2015 Posted September 25, 2015 Off ball question for anyone who has experienced this. So we have a plan for the 12/31/2014 plan year that terminated paid out all of there assets. So a final Form 5500 is going to be filed. Sounds simple, here is where the tricky stuff happens. 1. Plan sponsor can no longer be located. How should the 5500 be handled to be filed with the DOL? 2. The counts in 2013 exceeded 120 for the first time. So technically they are going to need an audit. Once again keep in mind that the Plan Sponsor went AWOL and can not be located. So we are not sure how the Schedule H should be reflecting this accurately. Any guidance or assistance would be greatly appreciated.
Lou S. Posted September 25, 2015 Posted September 25, 2015 Do you have a benefit statement with the home address of an officer of the plan sponsor - if yes, I'd start there. Have you been paid for 2014? It is the Plan Administrator's legal responsibility to file the Form and get an independent audit if required. Under what authority could you as a service provider file the form yourself and would you want that responsibility/liability? Perhaps they could qualify under Orphan Plan rules but I think they are pretty specific.
jpod Posted September 25, 2015 Posted September 25, 2015 This doesn't sound right. How could a Plan Sponsor/Employer with over 100 employees less than 3 years ago, as well as all of its owners and management, just vanish off the face of the earth so that you can't find anyone with whom to discuss this matter? I agree with Lou that if you are not the Plan Sponsor or the PA you have no responsibility under ERISA, but I think from a business perspective to minimize the risk of someone claiming you committed professional negligence you have to at least notify the right person or persons, and it is hard to believe that this is impossible.
Peter Gulia Posted September 25, 2015 Posted September 25, 2015 Without any observation about others' suggestions, what does your service contract say about what address you must or may communicate to? Peter Gulia PC Fiduciary Guidance Counsel Philadelphia, Pennsylvania 215-732-1552 Peter@FiduciaryGuidanceCounsel.com
jpod Posted September 25, 2015 Posted September 25, 2015 FGC, if they complied with the literal terms of a boilerplate Notice provision in their contract you would advise them to stop there? If I were a TPA I don't know that I would want it to get around town that I didn't make a little bit of effort to find a live human, and once I did if he told me to forget about it and mind my own business I would be happy with that.
Peter Gulia Posted September 25, 2015 Posted September 25, 2015 No, that's not what I would advise. Rather, remembering the service contract's terms (and related information) is among several points of information a service provider could consider. Peter Gulia PC Fiduciary Guidance Counsel Philadelphia, Pennsylvania 215-732-1552 Peter@FiduciaryGuidanceCounsel.com
austin3515 Posted September 27, 2015 Posted September 27, 2015 Drop a dime to the DOL (if you can find a payphone ) notifying them of an orphan plan. End of responsibility. I'm curious though, did they close doors? Are they out of business? Did they go bankrupt; if so there would be a bankruptcy trustee. Austin Powers, CPA, QPA, ERPA
MoJo Posted September 28, 2015 Posted September 28, 2015 I don't know that this need the "anonymity" of a pay phone. Simply alert the DOL that the plan fiduciary has abandoned the plan, and without authorization (and payment) the TPA isn't going to do anything....
austin3515 Posted September 28, 2015 Posted September 28, 2015 That;s what I meant, perhaps my "drop a dime" line was misleading. I just meant report them to the DOL. Austin Powers, CPA, QPA, ERPA
MoJo Posted September 28, 2015 Posted September 28, 2015 "That;s what I meant, perhaps my "drop a dime" line was misleading. I just meant report them to the DOL." Sorry - I read the "payphone" part out of context with the "dime" comments.... Interesting how such a phrase as "drop a dime" and payphones seem to hark to another age. Many wouldn't know what "drop a dime" means - nor how to actually use a payphone (and last time I checked - it was at least a "quarter" - although some of them have card readers....
austin3515 Posted September 28, 2015 Posted September 28, 2015 I just saw one the other day, and it looked as interesting as a Model T Austin Powers, CPA, QPA, ERPA
MoJo Posted September 28, 2015 Posted September 28, 2015 "I just saw one the other day, and it looked as interesting as a Model T :)" Can't say I've seen one in a while. Last time was in an airport (there were probably 20 empty spaces that used to have payphones and ONE phone left). I very vividly remember reading an article on "top 10" investment ideas for the future - and one of them was "payphones" - because our increasingly mobile workforce needed to stay connected. Glad I didn't bite. Anyway - the DOL should be notified and will handle it.
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