Message Boards Digest

August 2, 2019

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

Stash026 created a topic in Defined Benefit Plans, Including Cash Balance

Impact on Cash Balance Plan of Poor Investment Results

What happens if the investments of a cash balance plan perform poorly? Is the employer on the hook to make up the lost interest? Is it annual additional required contributions for the shortfall?

Number of replies posted  4 replies      Number of times viewed  62 views      Add Reply

KaJay created a topic in Retirement Plans in General

403(b)(9) Church Plan Operational Error -- Did Employee Waive It?

A non-electing 403(b)(9) church plan has an employer with several operational errors. The employer is currently working towards submitting a VCP application. It has been identified by one person in this organization that part-time employees working 20 hrs/week or more were never given the opportunity to participate via salary deferral. Now, the plan is not subject to the Universal Availability rule, BUT the overall plan document indicates default eligibility for deferral participation as 20 hrs/week UNLESS an employer overrides this eligibility with a statement on its Employer Adoption Agreement in which they can raise or lower the hour threshold. This employer did not indicate a threshold for eligibility on its Employer Adoption Agreement. However, one of the individuals believes because the employment offer to one or more part-time employees stated there would be "no benefits" with the part-time position(s), he believes that there was not an operational failure to follow the written plan document. Is he right? Is this a case of "facts and circumstances" in which the employer could justify not giving an opportunity to participate because the employment offer stated no benefits would be available?

Number of replies posted  0 replies      Number of times viewed  18 views      Add Reply, Inc.
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