Message Boards Digest

June 22, 2021

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

Santo Gold created a topic in Miscellaneous Kinds of Benefits

Employer Educational Assistance Program Provider Needed

"What type of person/organization would you reach out to if you had a client who wanted to establish an Employer Educational Assistance Program? Anyone you can recommend?"

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AlbanyConsultant created a topic in 401(k) Plans

Fund Settlement a Decade After Plan Is Paid Out

"The former plan sponsor of a plan that terminated and was paid out in 2011 just received a check at her home from the fund platform that held the old plan. The accompanying letter says that, as plan fiduciary, she needs to handle this $1,400 which comes from a settlement from 2012 by either allocating it among the plan participants or applying it as plan fees, so this leads me to think that this isn't specifically for her account.

Ignoring the fact that a settlement is arriving in 2021 from nine years ago... there were 8 or 9 participants with balances in the final year of the plan. Distribution fees alone could easily eat up 1/3 of that. Throw in some consulting time...

The problem I see is that there is no trust any more to pay the participants from. We'd have to re-establish the accounts back at the platform, probably sign new paperwork, send distribution forms (find the participants!), etc. And if the trust has assets again, doesn't that mean the plan is active again and we have to file a 5500? Update the document? By the time all those fees are tallied up, this money is definitely spent.

On the other hand, taking this money pre-emptively but not doing that work to 'earn it' seems wrong, unless consulting for it is a very long process. Any suggestions?"

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JHawk created a topic in Employee Stock Ownership Plans (ESOPs)

Why Would an Individually Designed ESOP Want to Switch to a Pre-Approved Plan Document?

"I'm trying to understand whether an individually designed plan ESOP that previously received a determination letter (that has since expired, but it looks like the expiration date has been waived across all IDP's) needs to switch over to the Cycle 3 pre-approved plan design. I am reading that employers should consider adopting a pre-approved plan because IDP ESOPs are no longer being reviewed by the IRS. But what would compel an employer to switch over? It doesn't seem that there is much enforcement in this area, and I'm trying to find laws or rulings that would motivate or otherwise incentivize an employer with an IDP ESOP plan to switch over to a cycle 3 pre-approved plan design."

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Gilmore created a topic in 401(k) Plans

OK to Increase the QACA Rate on Each Anniversary of Enrollment?

"Is it acceptable to provide that the initial default rate in a QACA will increase on the anniversary of the participant's initial automatic enrollment? For example, participant is auto-enrolled at 3% on July 1, 2021. The deferral rate would increase to 4% on July 1, 2022, 5% on July 1, 2023, etc?"

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mariemonroe created a topic in Correction of Plan Defects

Can Former Shareholders of Plan Sponsor Be Held Liable for Plan Error in This Circumstance?

"Plan sponsor is judicially dissolved due to a shareholder dispute and a receiver is appointed to liquidate the company. Receiver terminates the 401(k) Plan and distributes assets to plan participants. Plan audit for final 5500 reveals numerous errors in plan operation that individually are insignificant. The cost to correct the errors would be very significant and would result in participants receiving very small amounts IF receiver choses not to correct plan errors, can receiver be held liable if the plan is audited? What about the former shareholders of the company?"

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Here are the most recently posted jobs on, a service of BenefitsLink:

View job as DC Administrator

DC Administrator  View details

Telecommute / Phoenix AZ

View job as Manager, 5500 Team

Manager, 5500 Team  View details

401K Generation
Altamonte Springs FL

View job as Retirement Sales Consultant

Retirement Sales Consultant  View details

Telecommute / FL / GA / NC / SC

View job as Retirement Account Administrator, Senior

Retirement Account Administrator, Senior  View details

Telecommute / MI / MN / ND / NH

View job as Pension Sales Associate

Pension Sales Associate  View details

Pacific Life
Omaha NE / Newport Beach CA

View job as Employee Benefits Investigator (Recent Graduate)

Employee Benefits Investigator (Recent Graduate)  View details

Employee Benefits Security Administration [EBSA]
Telecommute / Fort Wright KY / OH

View job as Sales Operations Specialist for Retirement 401k Plans

Sales Operations Specialist for Retirement 401k Plans  View details

Walnut Creek CA

View job as Sales Operations Specialist for Retirement 401k Plans

Sales Operations Specialist for Retirement 401k Plans  View details

Charlotte NC

View job as Advanced Market Consultant - Retirement

Advanced Market Consultant - Retirement  View details

Voya Financial
Telecommute / AZ / CA / CO / CT / DC / FL / GA / MA / MD / MN / NY / OR / PA / TX / WA

View job as Transition Specialist

Transition Specialist  View details

AssuredPartners Investment Advisors

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