52626 Posted July 11, 2022 Posted July 11, 2022 Plan states forfeitures are reallocated - must be employed on last day and 1,000 hours. Exception death, disability or retirement. Platform stating the client wanted to use forfeitures to reduce the contribution. Amendment signed 5/1/2021. This was part of the amendment changing eligible to date of hire vs 1,000 hour. Employee eligible 4/1/2021 and died the next day. Platform saying the amendment would be a cut back in benefits for her. She was eligible for the reallocation of forfeitures before the amendment was signed. Client never wanted to use forfeitures to offset the employer contribution. No one can figure out why the platform made this change. What if anything an they do to reallocate the funds for 2021. We are not talking about a lot of money. I know this is a document issue. The amendment states - Costs of Administration. All reasonable costs and expenses (including legal, accounting, and employee communication fees) incurred by the Administrator and the Trustee in administering the Plan and Trust may be paid from the forfeitures (if any) resulting under Section 11.08, from the suspense account described in this Section, if any, or from the remaining Trust Fund. All such costs and expenses paid from the remaining Trust Fund shall, unless allocable to the Accounts of particular Participants, be charged against the Accounts of all Participants as provided in the Service Agreement. This is what the recordkeeping is saying requires the forfeitures to be used to offset the er contribution. I There is not an option in the AA to say forfeitures are reallocated Need some help......
Lou S. Posted July 11, 2022 Posted July 11, 2022 Forfeitures are $X Declare a PS contribution of $X. Reduce the amount of contributions to the trust by $X. Allocate $X to participants. Luke Bailey, Nate S and ESOPMomma 3
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