10/27: The IRS Headquarters (formerly the "National Office")
sponsors two sanctionless programs for voluntary correction of operational
defects that would disqualify a retirement plan -- VCR and SVP. SVP, or
the "Standardized VCR Program", is limited to seven types of plan defects
and requires the use of specified corrections. Under SVP, the mandated
correction for failure to provide minimum top-heavy benefits to non-key
employees is to make up the minimum benefits. Is an alternative form of
correction available under VCR? Find out the answer in
Q&A for Plan Defects: Correction/VCR/CAP
10/27: An employee dropped
his spouse during last year's open enrollment (in December 1995). Now, we found
out that the reason for dropping the spouse was a divorce. We never offered COBRA
coverage to the ex-spouse and she is now claiming that she is entitled to COBRA.
We told her that neither she nor her ex-husband told us about the divorce within
60 days. Doesn't that get us off the hook for COBRA? Find out the answer in the COBRA Q&A Column
10/27: Is an employee who voluntarily takes early retirement at age 63-1/2
eligible for COBRA? The answer's not as easy as it looks! See the COBRA Q&A Column