Guest CGBS Posted February 6, 2001 Posted February 6, 2001 Once again Employers are late on deposits. I know that even if all the funds lost money, earnings still have to be deposited. Does anyone know where I get the percent rate to use on these late deposits? I can check on the "best" rate of return on the actual funds, but I think they ALL lost money in 2000 on this particular case. Thanks for any help.
R. Butler Posted February 6, 2001 Posted February 6, 2001 If every fund option available to participants lost money for the time period(s) in question then are not any gains to allocates. Hypothetically you may be able to adjust for a loss, although I'd be careful about doing that. If there are late deposits for multiple pay periods, I would double and triple check to be sure that there is a loss for each period in question. Good luck.
Guest CGBS Posted February 7, 2001 Posted February 7, 2001 I think you still need to look at the Federal short term rates for late deposits and give earnings even if all investment choices lost money. Does anyone know where I locate the table of the Federal short term rates that should be used for the period 1/1/2000 through 12/31/00? Thanks again!
Bill Berke Posted February 8, 2001 Posted February 8, 2001 The DOL's VFC program covers this exact problem and tells you (the fiduciary) how to fix.
david rigby Posted February 9, 2001 Posted February 9, 2001 Link to the DOL Voluntary Fiduciary Correction program. http://www.dol.gov/dol/pwba/public/pubs/vfcpfs.htm I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
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