"An advisor called me today and asked about how catch-up contributions are treated when an ADP failure occurs. The participant in question always has deferrals returned due to failed testing. However, since Catch-up is not included in the ADP test, how is it treated when there is an excess deferral due to a failed test? My guess is that they would not be able to use the catch-up, so all of the catch-up would come out along with whatever excess was determined. Am I correct in this?"

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"Are distributions from a 457 Plan processed through payroll? That's what someone is telling me, I just wanted to be sure."

"We have a client who has maintained an employer-paid disability program for over 20 years. New executives were able to join on the renewal date each year, provided that they had one year of service by that date. Last year, to entice an executive to join their firm, they allowed her to enter the plan without the required one-year service credit. There are other new hires for the coming year. Should they be allowed in without the required service credit or can the employer make them wait until they have 1 year of service? In other words, can the employer make an exception for one executive and then go back and manage the eligibility like it was done prior?"

"Anyone work with Civil Service Retirement System (Postal worker)? I am looking at a QDRO for a friend and wondering how something might be interpreted. This is an older QDRO (2003) and is very short. It splits the benefit according to the Majauskas formula, then is says, "The alternate payee shall be treated as a surviving spouse for the purposes of a joint and survivor annuity and pre-retirement survivor annuity purposes". That's about it - it is only 4 paragraphs long. The participant has retired and the AP is getting benefits, but the question is, what happens if the participant dies. There was nothing in the QDRO about required form of payment, but I am wondering if the Normal Form in the Civil Service Plan is a J&S and therefore, saying that that the AP is treated as the spouse for the J&S annuity means they will continue to receive a survivor's portion if the participant predeceases the AP. Any thoughts? I assume the only way to know for sure would be to ask the PA, but I wondered if anyone had any thoughts before we did that."