Unsigned Plan Document - Schedule B

[richard]

It is typically not the best practice for an actuary to sign a Schedule B if the client (or his advisor) provides only an unsigned plan document. But, it is a violation of ERISA, etc., if an actuary does so?

On takeover cases, I've sometimes seen prototypes (either standardized or nonstandardized) that are unsigned. That doesn't necessarily mean that there isn't a copy somewhere that has been signed. And the actuarial valuation and Schedule B signed by the prior actuary reflects plan terms consistent with the unsigned document. And when I push, a signed document is generally sent to me.

However, what happens if the original signed documents simply do not exist. Assuming (for the moment) that they were truly signed, there is obviously no direct evidence of the existance of a plan. The indirect evidence would be -- the client has been operating assuming he has a valid plan, the prior actuary has been operating assuming he has a valid plan, the investment firm has been operating assuming he has a valid plan, etc.

Now, this would of course become an issue when obtaining a determination letter, but that is often delayed, courtesy of 401(B). Meanwhile, there is an ongoing valuation requirement and a 5500 requirement.

What to do in this imperfect situation --- ideas?

[rcline46]

If a plan is not adopted, then it does not exist. That is the legal end of it.

Insist on seeing a signed copy, and make sure the dates are consistent.

On takeover plans, we will not go forward without a signed prior plan document. (A LOD and usigned will suffice, because a signed copy had to be presented to get a LOD)

[richard]

In the situation at hand, there actually is an old determination letter (from 1986 --- yeah , I know, there will be other problems when we restate at the end of this year). And the client is willing to indicate that this is the current plan.

[david rigby]

I agree with rcline46: doing a valuation on an unsigned document may be OK, properly caveated. But signing a Schedule B is a different matter.

From your last post Richard, it appears that there is no attorney involved. You might wish to be sure you are not inadvertantly giving advice that the client interprets as legal advice. I suggest this client needs an ERISA attorney to review any problems with the adoption and documentation of the prior document.