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Here are the most recently added topics on the BenefitsLink Message Boards:
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Peter Gulia created a topic in Correction of Plan Defects
"A participant's salary-reduction agreement called for $961.54 per pay. The employer did this for all 26 pay periods, with no change to December's last pay. The participant's deferral limit for 2019 is $25,000 [$19,000 + $6,000 -- age 50]. Assume the employer/administrator is unwilling to use the plan's provision for a return of a mistaken contribution. Must the plan's administrator instruct the plan's trustee to pay the participant a corrective distribution of $0.04? Is there any non-frivolous argument for treating this as so small that a correction is unnecessary?"
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Kevin C created a topic in Defined Benefit Plans, Including Cash Balance
"1.411(a)(13)-1(d)(4)(I)(C) says 'If a variable annuity benefit formula adjusts benefits by reference to the difference between a rate of return on plan assets (or specified market indices) and a specified assumed interest rate of 5 percent or higher, then the variable annuity benefit formula is not treated as being reasonably expected to provide a smaller total dollar amount of future adjustments for the participant than for any similarly situated, younger individual who is or could be a participant in the plan, and thus such a variable annuity benefit formula does not have an effect similar to a lump sum-based benefit formula.' What is the significance of this exception, other than that a plan with this type of formula wouldn't be a statutory hybrid plan? The 2010 preamble mentions that people wanted this exception widened to apply to more plans, so it seems there
must be some advantage to fitting within the exception."
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SYCS created a topic in Defined Benefit Plans, Including Cash Balance
"I started for an employer in summer of 1998. I was separated from my spouse in January 2003. The divorce was finalized in summer of 2006. The DRO only mentioned my 401k and not 'all retirement plans' ( my attorney's mistake -- h has since passed away), which was 100% awarded to me in the property division in the DRO. No QDRO was ever filed. I retired in 2020. I think Fidelity is asking for a QDRO (not sure why -- they are very non-responsive and there's no transparency about the process). What if I ask my ex-husband for an affidavit that he understood the terms of DRO to include all retirement plans? If he agrees to do this, will it be enough for the plan admin/Fidelity? Or must it be a court-approved document? Would I need to draft a QDRO? Or would Fidelity provide one? Would a QDRO have a place for an AP/ex-spouse to sign off without getting a percentage of the
pension?"
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Ken_BenefitScape created a topic in Health Plans (Including ACA, COBRA, HIPAA)
"Our legal group has sent me a few drafts of their ICHRA document. Does anyone have a template that I can use to compare the content to to be sure we've covered all of the various topics? Does anyone have access to a plan document?"
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SSRRS created a topic in Defined Benefit Plans, Including Cash Balance
"In an S-Corp, owner-only DB Plan, the owner didn't take any Form W-2 compensation during 2019. The plan's benefit is based on the 3 highest consecutive years of salary (over entire career). Can a contribution be made for 2019 because a 3 year salary average was established during prior years?"
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Doogan created a topic in SEP, SARSEP and SIMPLE Plans
"I have 2 companies. Company A has existed for some time -- I offered a SIMPLE IRA out for year 2020. Company B was formed in 2019 (under the laws of a different state). An employee of Company A, who worked with me full-time for many years, resigned in 2018. The employee came back to Company A in mid-2019. When I opened Company B, the employee relocated to the state in which Company B is located, and came on board full-time as an employee of Company B in November 2019. Should I be offering this employee the opportunity to participate in a SIMPLE IRA, given that the employee was working for one of my companies (making over $5K during multiple years). Or should this be kept separate and wait for the 2 years period, etc.? I own both entities -- Company A (50/50 with my wife) and Company B (100%). I have no problem offering coverage and making up any discrepancy over the past 2
months if needed."
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Here are the most recently posted jobs on EmployeeBenefitsJobs.com, a service of BenefitsLink:
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Lois Baker, J.D., President loisbaker@benefitslink.com
David Rhett Baker, J.D., Editor and Publisher davebaker@benefitslink.com
Holly Horton, Business Manager hollyhorton@benefitslink.com
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