Jakyasar Posted November 21, 2022 Posted November 21, 2022 Hi Cash balance plan with 10 groups, some groups cover individuals (like founding member) and some groups cover multiple participants (like support staff). Benefits are to be frozen. Can 10 different 204(h) notices be provided for each group separately? Thank you
Effen Posted November 22, 2022 Posted November 22, 2022 What are the other options? You could do a consolidated notice, but it would need to disclose the individual impacts, which would probably require them to disclose that everyone has different benefits. How did you handle the SPD? Luke Bailey 1 The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice.
Jakyasar Posted November 22, 2022 Author Posted November 22, 2022 Quote How did you handle the SPD? SPD was all consolidated (I could have done individual SPD's but they did not ask for it). This was 3 years ago. I did prepare a consolidated 204(h) notice but they are coming back saying need to keep all separate, really, after 3 years you wake up? As far as I know (from my previous research), the 204h notice needs to be provided to the participant(s) who are affected by and also serves as SMM. I do not see any issue here to create 10 different ones. How my benefit is impacted is not how your benefit is impacted. Any thoughts on why I cannot do it? Thanks
Popular Post Bri Posted November 22, 2022 Popular Post Posted November 22, 2022 It's right in the regulations, A-11 (ii) Option for different section 204(h) notices. If a section 204(h) amendment affects different classes of applicable individuals differently, the plan administrator may provide to differently affected classes of applicable individuals a section 204(h) notice appropriate to those individuals. Such section 204(h) notice may omit information that does not apply to the applicable individuals to whom it is furnished, but must identify the class or classes of applicable individuals to whom it is provided. Jakyasar, CuseFan, C. B. Zeller and 2 others 5
CuseFan Posted November 22, 2022 Posted November 22, 2022 We always provide separate 204(h) notices. Kenneth M. Prell, CEBS, ERPA Vice President, BPAS Actuarial & Pension Services kprell@bpas.com
Jakyasar Posted November 22, 2022 Author Posted November 22, 2022 Bri, thank you for the link, totally forgot about it. Much appreciated all your input.
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