Message Boards Digest

July 19, 2019

Here are the most recently added topics on the BenefitsLink Message Boards:

Chippy created a topic in 401(k) Plans

SIMPLE 401(k) Plan -- Missed Deposits

I have a SIMPLE 401(k) Plan, one active participant. My contact reported to me that there were no deferral or matching contributions during 2017 or 2018. My contact left the company two weeks ago. The new contact has been reviewing files and it appears that the former contact did not fund the 401(k) Plan. I'm not sure where the money went, but it didn't make it to the plan. Can this be corrected by self-correction? Or should they file through the VCP Program? I'm not sure the best way to fix this would be. I've never come across something like this.
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Dougsbpc created a topic in Defined Benefit Plans, Including Cash Balance

Life Insurance in Two Plans

We took over a traditional DB plan and 401(k) plan with 5 participants. Both plans are sponsored by the same employer and have whole life insurance. It appears each plan meets the incidental benefit rule. DB benefits are under 100 x expected monthly benefits and 401(k) plan premiums are less than 50% of aggregate contributions. In addition, it appears that all participants in both plans have comparable coverage. Is there a problem with participants having this much life insurance across two plans?
Number of replies posted  1 reply      Number of times viewed  31 views      Add Reply

fmsinc created a topic in Defined Benefit Plans, Including Cash Balance

Definition of 'Retirement' Under ERISA or REA

Participant's employment is terminated. He does not apply to for his pension annuity benefits, that is, to enter payout status? Has he "retired"? Does it matter if he has or has not reached early retirement age of 55 at the time of termination? I have a Hopkins v. AT&T situation (see link to case below) where at the time of divorce the husband had terminated his employment and had previously elected his wife to receive his survivor annuity benefits, but the court did not award her survivor annuity benefits. Under Hopkins retirement prior to divorce would lock ex-wife into survivor annuity benefits. Wife's attorney says that his termination of employment was tantamount to retirement and locked in the wife as survivor beneficiary per Hopkins. Husband's attorney say termination and retirement are two different things and he has not yet retired and since the court did not award survivor annuity benefits to the wife she doesn't get them. I cannot find a clear definition of what "retirement" means. Hopkins can be found here. Thanks.
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