How can Plan distribute a contribution receivable from employer compan

[Moe Howard]

A plan has valued its assets and is supposed to make a lump-sum distribution to a 100% vested terminated participant within the next 60 days. However, one of the plan's assets ( a Receivable) happens to be the prior year contribution that is currently receivable from the employer. The terminated participant demands his full lump-sum distribution within the next 60 days (just like it says in the Summary Plan Description). However, the plan won't receive that prior year contribution from the employer corporation for another 5 months (the corporate employer's prior year income tax return has been extended & the corporation won't be paying that contribution to the plan until 5 more months).

What is the Plan supposed to do in order to comply with the 60 day deadline as stated in the Summary Plan Description? How can the Plan distribute an asset that it does not yet have in it's possesion. Is the Plan even required by ERISA to include the receivable in it's annual valuation ?[Edited by Moe Howard on 08-18-2000 at 07:52 PM]

[Dave Baker]

I wouldn't think the plan document would provide the participant with an account balance as of today that takes into account as-yet-uncontributed assets, even though the individual eventually will have more money "as of" the valuation date when the assets are contributed.

As of today, he or she is entitled to a certain proportion (slice) of the pie, but the pie isn't as big as it's going to be in a few months. The participant can take the slice now and get another sliver as a supplemental distribution after the contribution has been made.