Adding an arbitration provision?

[Peter Gulia]

If a user of an IRS-preapproved document wants to add an arbitration provision, does any sponsor's document allow a user to specify an arbitration provision through an adoption-agreement choice or other norm of the preapproved document?

If not, is an arbitration provision something a user can add without defeating reliance on the IRS's approval?

 

[RatherBeGolfing]

Peter,

My VS document expressly prohibits modifications to the document that requires arbitration for participant disputes.

[Peter Gulia]

RatherBeGolfing, thank you (!) for that helpful information.

Do we suspect the document states the prohibition because the IRS asked for it?

If so, why would the IRS think precluding arbitration is needed to support tax qualification?

(By the way, I'm not advocating for or against using an arbitration provision; I'm only seeking to learn what is or isn't feasible for a preapproved document's user.)

[RatherBeGolfing]

The language is in the trust section of the document which speaks to the authority of the trustees to settle claims or debts owed to or from the trust.  It includes arbitration in general but expressly prohibits arbitration if the claim involves a participant.  A separate section contains the language to prohibit modification of the trust agreement portion of the document to include arbitration of participant claims.

It feels like IRS requested language to me.

[Peter Gulia]

Thanks again.

Does anyone have a document that affirmatively allows a user to provide arbitration?

Does anyone have a document that is silent about whether arbitration can be provided or must be precluded?

 

[Bob the Swimmer]

We have language for arbitration that we use in our employment agreements, some annual incentive agreements, and LTIP documents.

My email is rjones5335@aol.com if you are interested.