FT William Loan Procedures / QDRO Procedures

We just started using the FT William 401k docs.  I was somewhat surprised that neither the loan procedures nor the QDRO procedures has a place to sign.  Similarly, there is no incorporation by reference of either one in the basic plan document or the Adoption Agreement.  Nor are they approved/adopted as attachments to the resolution/consent to action.

I was just curious if anyone had pondered this before.  I had asked FT "Where are these procedures actually adopted by the Employer" and their response was basically that the IRS had approved the appoach (which obviously is true!).

I mean I trust them of course but would be happy if there was a straightforward answer to this question... 

For loans, I'm assuming our FT "Edit Plan" options are the same as yours, and if so, see if you have an option under J.59 "Indicate whether a signature line appears on the loan procedures".  

I see that now, thanks!  Nothing for QDRO's right?

I am asking them why it's "ok" to do it without a signature anyway.  The Adoption Agreement is signed, etc.  I'm ust surprised its not even referenced in the Consent documents or even incorporated by rerenced in the Adoption Agreement or anything. 

Where this started is that cash balance cycle 3 documents have no space for employer signatures anywhere and no option to add it. Anyway we are new to FT and I am just plain curious as to why its ok.

I cannot comment on loan procedures, but ERISA Section 206(d)(3)(G)(ii), 29 U.S.C. § 1056(d)(G), requires sponsors of qualified retirement plans to maintain written procedures for the administration of qualified domestic relations orders.  I don't know who it is that is supposed to "sign" such procedures. I don't know how you can maintain written procedures if you have not adopted them, or how you can adopt them without a written and signed document.  But I am on the QDRO preparation side, not the Plan Administrator or TPA side of the matter so what do it know.     

I am of the same opinion as you 👍

The plan sponsor/employer has nothing to do with QDRO procedures. QDRO procedures are a matter of plan administration, to be adopted by the plan administrator, or if there is a separate fiduciary for QDRO administration, then that administrator. Don’t get sloppy about the distinction just because most plan sponsors inappropriately* name the employer as the plan administrator. As far as adoption of the written QDRO procedures goes, appropriate adoption action and memorialization is determined by the form of organization of the administrator (unless the plan itself or other adopted procedures under the plan specifies how adoption is to be carried out). If the administrator is a corporation, then the adoption should follow the corporate procedures and policies for adoption with respect to similar matters. That gets us into matters relating to corporate and agency law, including delegation of authority, etc., which is beyond the scope of this response. —OR— it is possible that the sponsor/settlor adopted an entire package of plan documents in one action (of course with full knowledge and mention of everything that was being adopted - not) and the written QDRO procedures were included in the package.

*Choice  of who to designate as a plan administrator is a separate matter in which I am a righteous outlier, if you review the discussions on the subject in Benefitslink. It is fine for a sole proprietorship to name the employer as plan administrator, and that’s about it.