CharlesLeggette Posted October 1, 2015 Posted October 1, 2015 I had a TPA call and said he has 2 plans that had made their MRC by 9/15 but they were overlooked for their 9/30 certification letter.They were both 1/1/2014 new plans with 12/31/2014 EOY vals.Both are small CB plans and are fully funded. I personally have never had this problem and want to proceed cautiously -- but I assume they are deemed < 60% and must issue a ee notice freezing everything until 12/31/2015... Seems awfully harsh. Is there any relief for this?
Hojo Posted October 1, 2015 Posted October 1, 2015 Restrictions do not apply for the first 5 years of the plan (except for the restriction on payment of lump sums).
CharlesLeggette Posted October 1, 2015 Author Posted October 1, 2015 Yes, but apparently the notice must still be issued. Here's the FTW doc section. Notice Requirements. See section 101(j) of ERISA for rules requiring the plan administrator of a single employer defined benefit pension plan to provide a written notice to Participants and Beneficiaries within 30 days after certain specified dates if the Plan has become subject to a limitation described in Subsections (b)(1), ©, or (d). b(1),© are the lump sum provisions.
Calavera Posted October 1, 2015 Posted October 1, 2015 Yes, notice should be issued to affected participants that they cannot get their lump sum upon termination of employment. However, if there are no vested benefit yet, there are no affected participants.
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