Freezing and Terminating Plans
|
|
- Amice Lindsay Shelton
- 6 years ago
- Views:
Transcription
1 Freezing and Terminating Plans Presenters: Moderator: Richard Sirus,JD Greenberg Traurig, LLP David Strom, FSA, EA, MAAA - Segal Laura Mitchell, EA, MSPA, Actuarial Consultants, Inc. Freezing Plans 2 1
2 Types of Plan Freezes Hard Freeze No future service accruals or salary credit for calculation of Final Average Earnings Service must continue for vesting and eligibility purposes Soft Freeze Close plan to new entrants Current participants continue in plan without change, but new hires do not participate in plan Modified Hard or Slushy Freeze No future service accruals Continued crediting of future salary for calculation Final Average Earnings Service must continue for vesting and eligibility purposes 3 Why Freeze? Plan sponsor can not afford the cost of the plan Plan sponsor wants to terminate the plan, but it is significantly under funded Plan sponsor wants to shift costs to another plan 4 2
3 Process of Freezing a Plan Formal amendment by plan sponsor 204(h) notice required if rate of future benefit accrual may reasonably be expected to be significantly reduced Notice goes to: Affected Participants including alternate payees Notice Timing: Large plans: 45 days Small plans (less than 100): 15 days Multiemployer plans: 15 days Consider whether a partial termination has occurred to determine if full vesting is needed Consider whether to request a favorable determination letter from the IRS 5 Qualification Requirements Applicable to Freezing Plans Minimum participation of 401(a)(26) Minimum Coverage of 410(b) Nondiscrimination of 401(a)(4) Survivor Annuity of 417(e) Minimum funding of 412 Prohibition of employer reversion until plan is terminated and all benefits paid 6 3
4 Accounting Issues Under Fas88 (Single Employer Plan) Curtailment an event that: Significantly reduces the expected years of future service for present employees Eliminates for a significant number of employees, some or all of future benefit accruals Soft Freeze (closing plan to new entrants) does not trigger a curtailment Modified Hard or Slushy Freeze (no future service accruals) will likely trigger a curtailment Hard Freeze (no future service accrual or salary credit) will definitely trigger a curtailment 7 Accounting Issues Under Fas88 (Single Employer Plan) 1. Unrecognized Prior Service Cost that was being spread over future service (now being eliminated) is a curtailment loss 2. Reduction in PBO from plan freeze is a gain that may be recognized immediately or deferred: If plan has net deferred gains, then the reduction in the PBO is a curtailment gain If the plan has net deferred losses, then the reduction in the PBO is offset against such losses with the excess of such reduction over losses being a curtailment gain 3. If the net effect of 1) and 2) is: A loss, it shall be recognized in earnings when it is probable that the curtailment will occur and the effect can be reasonably estimated; or, A gain, it shall be recognized in earnings when the amendment is adopted 8 4
5 Multiemployer Plan Freezes In general, a multiemployer plan: Is funded by negotiated contributions per collective bargaining agreements between participating unions and employers Provides benefits as determined by the trustees that are intended to be supported by the level of contributions coming into the plan If contributions become insufficient to provide the plan benefits, the Trustees can reduce or eliminate future accruals under the plan to bring back into balance with available resources Freezing plans can be problematic as members participate in the plan through a diversion of wages; However, there may be no other option. Under the Pension Protection Act of 2006 (PPA 2006), Trustees have various additional tools to address funding shortfalls of troubled plans by changes to adjustable benefits 9 Plan Terminations 10 5
6 Why do Plans Terminate? The plan sponsor can no longer afford the plan The plan sponsor perceives that it is not getting value for maintaining the plan The plan sponsor is dissolving or being purchased by a third party The plan no longer works well due to changes in the law The PBGC involuntarily terminates the plan 11 How Does a Plan Termination Happen? Must look at plan document to see what is required to terminate the plan Usually a Board action Should you do a plan amendment? Need to clarify administrative issues Need to update to comply with the law through date of termination Need to cease entry of new participants May need reversion provision 12 6
7 Freeze or Termination? The IRS says in regulations that a freeze occurs when no future benefits will accrue, but benefits are not being distributed Therefore, in order to have a termination, there must be an intent to distribute benefits The status controls the types of documentation that need to be done for a plan Limitations for collectively bargained plans 13 Employee Communications The Code and ERISA require pension plans to give advance notice of a future decrease in benefit accrual Large plans: 45 days Small plans (under 100): 15 days Multiemployer plans: 15 days If the plan was previously frozen, it does not need additional notice The PBGC requires covered defined benefit plans to provide affected parties with a Notice of Intent to Terminate Timing: At least 60, but no more than 90 days, before effective date 14 7
8 Funding considerations Special Issues Defined Benefit Plans Can terminate a non-pbgc defined benefit plan that has insufficient assets to pay benefits (see IRC 411(d)(3) vested to the extent funded) How will insufficiency be handled? PBGC style allocation? Owner absorbs insufficiency? Waiver vs. Allocation Can the employer fund up the plan on termination? Yes, but may not be currently deductible IRC 404(g) permits special deduction of funding on termination only for PBGC plans and only to the extent of funding PBGC guaranteed benefits 15 Special Issues PBGC-Covered Plans PBGC-covered plans can terminate only in 3 situations: 1. Standard Termination: assets are sufficient to pay ALL benefits or Majority Owner waiver 2. Distress Termination: assets are insufficient, but certain criteria are met 3. Involuntary Termination: PBGC action Assets must be sufficient at time of filing and at the time of distribution or a Majority Owner signs a waiver of benefits Benefit Freeze may be done as a separate amendment in case something goes awry in PBGC termination process 16 8
9 Standard Termination Timeline: Notice to Intent to Terminate to Distribution Deadline This timeline shows the key steps in the standard termination process. Certain deadlines may be extended as provided in PBGC regulations. 17 Standard Termination Timeline: Post-Distribution Certification This timeline shows the key steps in the standard termination process. Certain deadlines may be extended as provided in PBGC regulations. 18 9
10 Steps for Standard PBGC Terminations 1. Notice of Intent to Terminate 2. Notice of Plan Benefits sent to Affected Participants 3. Notice of Standard Termination to PBGC (Form 500) 4. PBGC Review Period 5. Notice of Annuity Information 6. Plan Closeout 7. Post Distribution Certification (Form 501) 19 Standard PBGC Termination 1. Notice of Intent to Terminate Must be provided to affected parties at least 60, but not more than 90, days before effective date of termination Affected parties: participants, beneficiaries of deceased participants, alternate payees, unions if covered Contents Plan and Employer Information (Plan name, Plan number, Emloyer Name, EIN, contact information for questions related to the temination) Statements that: Plan is being terminated and that assets must be sufficient for termination to occur Benefit accruals will cease, but will continue if plan does not terminate at intended time (or that there is a separate freeze amendment that will stay in effect) Participants will be advised of their accrued benefits and any insurer that will provide them, and how to get a copy of the SPD 20 10
11 Standard PBGC Termination 2. Notice of Plan Benefits to Affected Participants Must be provided before or concurrently with Standard Termination Notice to PBGC Contents: If participant is NOT in pay status for at least a year, The information on which benefits are based and statement that the party can promptly correct any information If info not available, best available data and statement that info is unavailable and offering opportunity to provide it Amount and form of benefits payable at NRA in any one form permitted under the plan Alternative benefit forms, including those payable on participant s death 21 Standard PBGC Termination 2. Notice of Plan Benefits to Affected Participants (continued) Contents: (continued) Amount and form of benefits payable at the earliest benefit commencement date and whether the benefit commencing on such date is subject to future reduction Additional info if benefit to be paid in lump sum If benefits are in pay status: Amount and form of benefit payable at termination date Amount and form of benefits payable to beneficiary upon participant s death Amount and date of scheduled benefit increases or decreases and explanation Special notice for parties with valid elections in effect as of the termination date (but not yet in pay status) or de minimis benefits If intend to delay distributions until IRS FDL is received, must submit for IRS FDL before or concurrently with Standard Termination Notice to PBGC 22 11
12 Standard PBGC Termination 3. Notice of Standard Termination to PBGC Deadline: 180 days after termination effective date Filed by Plan Administrator Information about the termination Enrolled Actuary s Certification of Sufficiency (Form EA-S) Plan Adminstrator s Certification Notice of intent to delay distributions until plan has received FDL from the IRS 23 Standard PBGC Termination 4. PBGC Review Period PBGC notifies plan administrator of the date on which it received a complete termination package If package is incomplete, the PBGC may offer a chance to correct and retain plan termination date If correction sent within later of 180 days of proposed termination date; or 30 days after PBGC notice is dated PBGC may ask for additional information Once PBGC has received complete filing, it has 60 days to review the data If PBGC does not send out Notice of Noncompliance during the 60-day period, Plan Adminstrator should proceed to close out the plan 24 12
13 Standard PBGC Termination 5. Notice of Annuity Information The plan administrator advises participants of what entity will provide benefits If insurer is not known, must advise participants of such and tell them they will get a supplemental notice once insurer is selected If supplemental notice needed, it must be provided at least 45 days before distribution to affected party 6. Plan Closeout All benefits must be actually paid by the later of: 180 days after PBGC review period expires; or 120 days after the plan received FDL from the IRS if the letter was requested before the standard termination notice was filed with the PBGC If assets become insufficient, plan administrator must stop making distributions and notify the PBGC 25 Standard PBGC Termination 7. Post Distribution Certification Deadline: 30 days after distribution of last dollar from the plan Plan administrator must file Form 501 with the PBGC 26 13
14 Standard PBGC Termination Majority owner waiver If assets are insufficient, a majority owner may waive the portion of his benefit equal to insufficiency Majority Owner : Sole proprietor sponsor Owner of 50% or more of capital or profits interest of partnership Owner of 50% or more of voting stock or value of all stock of corporation 27 Distress PBGC Termination Used when plan assets are not sufficient to cover all benefits 4 possible criteria to permit 1. Bankruptcy filing for liquidation 2. Bankruptcy Chapter 11 filing (if unable to pay debts in re-organization and continue in operation unless plan is terminated) 3. Company demonstrates it cannot continue in business without termination of plan 4. Company demonstrates that the costs of the plan have become unreasonably burdensome solely as a result of declining covered employment under all single-employer plans to which the company contributes 28 14
15 Steps for PBGC Distress Termination 1. Notice of Intent to Terminate 2. Notice of Distress Termination to PBGC (Form 600) 3. PBGC Review 4. Benefit Payments 29 PBGC Distress Termination 1. Notice of Intent to Terminate Due not less than 60, nor more than 90, days before effective date of distress termination To all affected parties Includes statement as to whether assets are sufficient to cover all PBGCguranteed benefits, which benefits are covered, and why benefits may have reduced guarantees 2. Notice of Distress Termination to PBGC (Form 600) Deadline: Within 120 days of proposed termination date Also, file Form 601, information about plan benefits and adminstrator certification Also, file Form EA-D: Actuary s Certification Additional required documentation 30 15
16 Distress PBGC Termination 3. PBGC Review Determines if criteria are met Advises employer if approved Employer provides detailed participant and benefit information to enable PBGC to see what is covered and what must be provided by the PBGC 4. Benefit Payments If plan sufficient to pay guranteed benefits, plan makes the payments If insufficient, PBGC appoints trustee to handle the distribution Trustee will formalize claim against employer for insured but uncovered benefits Liability: Total amount of unfunded liabilities PBGC can get lien for up to 30% of net worth 31 Bankruptcy Termination Issues Reportable event PBGC claims against the bankruptcy estate Pre and Post petition claims PBGC liens Minimum funding claims 32 16
17 PBGC Instituted Involuntary Termination PBGC may institute plan termination without sponsor approval if: The plan has not met minimum funding standards The plan will be unable to pay benefits when due Substantial owner non-death distribution occurred and the plan is insufficient to pay benefits afterward The PBGC believes that its possible long-run loss with respect to the plan will increase unreasonably if the plan is not terminated PBGC takes over the plan and appoints trustee to terminate the plan and pay out benefits Similar to distress termination 33 IRS Determination Letter on Termination Do you need FDL on termination? You never need FDL, but it s a nice thing to have Recommended when: Plan documentation due to legal changes is in flux and cannot know for sure that language in plan is sufficient There will be a reversion of excess assets M & A situation There will be merger or rollovers to another plan of the employer Recipient plan protected from disqualification due to transferred assets only if the recipient plan administrator had reasonable belief that the old plan was qualified A special ruling on some issue is desired, Example: You are eliminating any distribution forms under defined benefit plan based on proposed regs 34 17
18 Final Determination Letter Process Must give Notice to Interested Parties Plan must be updated to conform to all qualification changes (required even if FDL not received) See Notice File Form Distribution Issues Must distribute as soon as administratively feasible (Rev. Rule 89-87) How to handle illiquid assets Offer to all Liquidating trust Use PBGC Missing Participant Program 36 18
19 Surplus Assets in a Defined Benefit Plan Read the plan document to see whether surplus assets can revert to the plan sponsor If not, amend plan to allow for reversion If plan had mandatory employee contributions, employees must share in surplus 37 Tax Consequences of Reversions Reversion Tax: 50% Reduced to 20% if: Employer establishes or maintains a qualified replacement plan Plan provides benefit increases to participants in the terminating defined benefit plan Exemptions from reversion tax: Governmental plans Plans maintained by an employer exempt at all times from tax Beware of UBIT Beware of co-sponsorship of a plan with a non-exempt entity Plus Corporate Tax 38 19
20 Qualified Replacement Plan (QRP) Requirements At least 95% of the active participants in the terminating plan (who remain as employees after the termination) are active participants in the replacement plan Direct transfer is made from terminated plan to QRP If defined contribution is a QRP, amount transferred is allocated to participants over a period no longer than 7 years 39 How Much Must Be Transferred to a QRP? 25% of the potential reversion minus the present value of increases granted to participants Up to 100% of the potential reversion may be transferred to the QRP. Result: No reversion tax No corporate tax 40 20
21 Allocation of Surplus in a Defined Contribution QRP Move amounts out of QRP suspense account (1/7, 1/6, 1/5, etc.) Allocate up to 415 limit each year If amounts are unallocated, place in 415 suspense account After 7 years, QRP suspense should be at zero Continue allocation of 415 suspense account 41 Multiemployer Plan Terminations Multiemployer plans do not voluntarily terminate like single employer plans do, but termination effectively occurs when employers stop contributing to the plan Trustees continue with plan administration until annuities are purchased or assets are exhausted PBGC does not take over a multiemployer plan until it runs out of money and is unable to pay benefits Multiemployer plans have PBGC coverage, but at a lower level than for single employer plans: 100% of first $11 of monthly benefit 75% of next $33 of monthly benefit 42 21
22 Partial Plan Terminations 43 What is a Partial Plan Termination? Undefined in the law Generally, a decrease in participants that is sufficiently significant as to constitute a termination of the portion of the plan in which those individuals participate, causing 100% vesting Only terminated participants are affected by 100% vesting. Remaining participants are subject to normal vesting schedule 44 22
23 When Does a Partial Termination Occur? Nobody knows for certain Lots of litigation on this issue Rule of thumb (i.e., rebuttable presumption): 20% decrease in participants Facts and circumstances may rebut the presumption But what does a 20% decrease mean? 45 Horizontal Plan Termination Defined: A plan amendment creates a greater potential for reversion to employer (affecting possible vesting rights) Note: IRS has rejected that this is a defined contribution issue Defined Benefit: Reduction or freeze of benefits, but only if the plan is not under funded Can also occur if a plan amendment creates a significantly greater potential for discrimination Example: Plan amends forfeiture allocation formula in such a way so that most of the participants eligible for the allocation are HCEs 46 23
24 Amendment, Merger Amendment of defined benefit into defined contribution plan is considered to be partial termination of the defined benefit, and all participants become 100% vested Amendment of money purchase to profit sharing or freezing of money purchase does not result in 100% vesting Freezing of profit sharing does result in 100% vesting, because profit sharing must have recurring and substantial contributions 47 Latest Word on Partial Terminations 7 th Circuit Case: Matz v. Household Finance (Matz III) Court took the following positions: The fraction is based on all participants vested or not Created rebuttable and conclusive presumptions Matz presumptions: < 10% reduction: conclusively presumed not to be a PPT 10% - 20% reduction: rebuttably presumed not to be a PPT 20% - 40%: rebuttable presumed to be a PPT > 40%: conclusively presumed to be a PPT 48 24
25 Q & A 49 25
Defined Benefit Terminations. Lauren R. Okum, ASA, EA, MAAA, MSPA, Owner, Premier Actuarial Solutions
Defined Benefit Terminations Lauren R. Okum, ASA, EA, MAAA, MSPA, Owner, Premier Actuarial Solutions Lauren R. Okum, ASA, EA, MAAA, MSPA, Owner, Premier Actuarial Solutions Lauren is the founder of Premier
More informationINDEX. Enrolled Actuaries Meetings. Compilation of Questions to PBGC and Summary of their Responses 1998,
INDEX Enrolled Actuaries Meetings Compilation of Questions to PBGC and Summary of their Responses 1998, 2000-2016 2016 Enrolled Actuaries Meeting Adapted from material prepared by Mercer A Year-Question
More informationQualified Plan Terminations and Partial Plan Terminations
Qualified Plan Terminations and Partial Plan Terminations John P. Griffin, JD, LLM ASC Institute, LLC Introduction Recent IRS Guidance Agenda The Decision to Terminate a Plan Consequences of Plan Termination
More informationDefined Benefit Plan Terminations December 9, Lauren R. Okum, ASA, EA, MAAA, MSPA Premier Actuarial Solutions San Francisco, CA.
Defined Benefit Plan Terminations December 9, 2014 Lauren R. Okum, ASA, EA, MAAA, MSPA Premier Actuarial Solutions San Francisco, CA Agenda Types of Plan Terminations Benefit Liabilities Plan Sufficiency
More informationEmployee Benefits Mergers & Acquisitions Subcommittee Defined Benefit Plans
Employee Benefits Mergers & Acquisitions Subcommittee Defined Benefit Plans 2011 Midyear Meeting Jeffrey Lieberman Mitchel Pahl January 21, 2011 Introduction Defined Benefit Plans A defined benefit plan
More informationNew law impacts multiemployer defined benefit plans
Important information Plan administration and operation New law impacts multiemployer defined benefit plans Who s affected These developments affect sponsors of and participants in qualified multiemployer
More informationPlanning for Retirement Needs
Planning for Retirement Needs Plan Termination Chapter 14 Chapter 14: Plan Termination Deciding to terminate a plan Terminating defined-contribution plans Terminating DB plans Distributions Involuntary
More informationPLAN TERMINATIONS. Anne E. Moran, Steptoe & Johnson, LLP 1330 Connecticut Avenue, N.W. Washington, D.C Telephone: (202)
PLAN TERMINATIONS Anne E. Moran, Steptoe & Johnson, LLP 1330 Connecticut Avenue, N.W. Washington, D.C. 20037 Telephone: (202) 429-6449 I. OVERVIEW A. Definitions of Termination. Whether a plan is terminated
More information14-1 SECTION 14. THE PENSION BENEFIT GUARANTY CORPORATION CONTENTS
14-1 SECTION 14. THE PENSION BENEFIT GUARANTY CORPORATION CONTENTS Explanation of the Corporation and Its Functions Administration Plan Termination Insurance Plan Termination Financial Condition of the
More informationSUMMARY COMPARISON OF CURRENT LAW AND THE PRINCIPAL PROVISIONS OF THE PENSION PROTECTION ACT OF 2006: 1 MULTIEMPLOYER PENSION FUNDING REFORMS
August 17, 2006 SUMMARY COMPARISON OF CURRENT LAW AND THE PRINCIPAL PROVISIONS OF THE PENSION PROTECTION ACT OF 2006: 1 MULTIEMPLOYER PENSION FUNDING REFORMS Contents Page Minimum Required Contributions
More informationENROLLED ACTUARIES PENSION EXAMINATION, SEGMENT B
SOCIETY OF ACTUARIES AMERICAN SOCIETY OF PENSION ACTUARIES JOINT BOARD FOR THE ENROLLMENT OF ACTUARIES ENROLLED ACTUARIES PENSION EXAMINATION, SEGMENT B MAY EA-2, SEGMENT B, EXAMINATION E2B-10-04 Printed
More informationFunding-Based Benefit Limits for Single Employer Plans (IRC section 436) Full Version
Funding-Based Benefit Limits for Single Employer Plans (IRC section 436) Full Version Requirements of IRC section 436 apply only to single employer or multiple employer plans (not multiemployer plans)
More informationPBGC issues final reportable event rules
Importance indicator - Plan administration and operation PBGC issues final reportable event rules Who s affected The final reportable event rules affect single-employer and multiple employer defined benefit
More informationHelping you fulfill your fiduciary duties
A Fiduciary Planning Guide for Plan Sponsors Helping you fulfill your fiduciary duties MassMutual s Regulatory Advisory Services 2016 Calendar Contents Defined Contribution Plans 2 January March 4 April
More informationOutline Table of Contents
Outline Table of Contents Description Page General Rules of Minimum Funding (IRC section 412) 1 Minimum Funding Standards for Single Employer (or Multiple Employer) Plans (IRC section 430) 7 Quarterly
More informationParticipant Notices for. July 30 th, 2015
Participant Notices for Defined Benefit Plans July 30 th, 2015 Participant i t Notices for Defined Benefit Plans July 30 th, 2015 Presented By: Frederica S. Daniels, EA, FCA, MAAA, VP & Managing Actuary
More informationSection 436 Rules for DB Plans Monday, April 29, 2013
Section 436 Rules for DB Plans Monday, April 29, 2013 David B. Farber, ASA, COPA, EA, MSPA IRC 436 Overview IRC 436 provides certain restrictions on single and multiple employer defined benefit plans that
More informationReporting and Disclosure Guide for Employee Benefit Plans
Reporting and Disclosure Guide for Employee Benefit Plans This publication is available on the Internet at: www.dol.gov/ebsa For a complete list of EBSA publications, call toll-free: 1-866-444-EBSA (3272)
More informationWorkshop 24: DB Plan Termination Gotchas
Workshop 24: DB Plan Termination Gotchas Workshop 24: DB Plan Termination Gotchas Steven J. Levine, EA, MSPA sjlevine@bestweb.net 914-232-5451 Mary Ann Rocco, EA, MSPA mar@roccoea.com 714-393-8845 1 INTRO
More informationPension Benefit Guaranty Corporation (PBGC): A Primer
Pension Benefit Guaranty Corporation (PBGC): A Primer John J. Topoleski Analyst in Income Security November 3, 2016 Congressional Research Service 7-5700 www.crs.gov 95-118 Summary The Pension Benefit
More informationWorkshop 35 Benefit Restrictions
Workshop 35 Benefit Restrictions Richard A. Block, ASA, FSPA, MAAA, Block Consulting Actuaries, Inc., El Segundo, CA Thomas J. Finnegan, MSPA, CPC, QPA, MAAA, FCA, Principal, The Savitz Organization, Philadelphia,
More informationAutomotive Industries Pension Plan Actuarial Valuation and Review as of January 1, 2010
Automotive Industries Pension Plan Actuarial Valuation and Review as of January 1, 2010 Copyright 2010 by The Segal Group, Inc., parent of The Segal Company. All rights reserved. SECTION 1 SECTION 2 SECTION
More informationInternational Union of Operating Engineers Local 4 and Its Branches Pension Plan
International Union of Operating Engineers Local 4 and Its Branches Pension Plan Procedures and Policies for the Qualification and Interpretation of Domestic Relations Orders Adopted by the Board of Trustees
More informationEMPLOYER. Helping you fulfill your fiduciary duties. MassMutual s Regulatory Advisory Services 2019 Calendar for non-calendar year DC and DB plans
EMPLOYER Helping you fulfill your fiduciary duties MassMutual s Regulatory Advisory Services 2019 Calendar for non-calendar year DC and DB plans TABLE OF CONTENTS Defined Contribution Plans... 2 January
More informationLA Advanced Pension Conference WS 1: Benefit Restrictions Top 25 and IRC 436
LA Advanced Pension Conference WS 1: Benefit Restrictions Top 25 and IRC 436 Lawrence Deutsch, MSPA, MAAA, EA Larry Deutsch Penguin Consulting and Design Andrew W. Ferguson, FSA, EA, MSPA Altman & Cronin
More information2018 EA-2L Overheads Page Section Topic
1 INTRODUCTION 2 General Guidelines 3 New exam conditions 4 New exam conditions 4A New exam conditions 4B New exam conditions 5 Implied ranges 6 Recent exam summary 12/07/17 7 Detailed list of recent exam
More informationThe GROW Act. (Giving Retirement Options to Workers) Sponsored by Congressman Phil Roe (R-TN) and Congressman Donald Norcross (D-NJ)
The GROW Act (Giving Retirement Options to Workers) Sponsored by Congressman Phil Roe (R-TN) and Congressman Donald Norcross (D-NJ) SECTION BY SECTION SUMMARY Section 1: Short Title Giving Retirement Options
More informationSheet Metal Workers National Pension Fund
Sheet Metal Workers Withdrawal Liability Valuation as of December 31, 2016 This report has been prepared at the request of the Board of Trustees for the purposes of establishing the basis for withdrawal
More informationSHEET METAL WORKERS NATIONAL PENSION FUND DOMESTIC RELATIONS ORDER PROCEDURES Effective 7/1/2015 INTRODUCTION
SHEET METAL WORKERS NATIONAL PENSION FUND DOMESTIC RELATIONS ORDER PROCEDURES Effective 7/1/2015 INTRODUCTION Section 206(d) of the Employee Retirement Income Security Act of 1974, as amended ( ERISA ),
More informationSEIU National Industry Pension Fund
SEIU National Industry Withdrawal Liability Valuation as of December 31, 2016 This report has been prepared at the request of the Board of Trustees for the purposes of establishing the basis for withdrawal
More informationExpanded reporting and disclosure requirements Single-employer pension plans under ERISA
2019 Expanded reporting and disclosure requirements Single-employer pension plans under ERISA Table of Contents Reporting Requirements 1 Disclosure Requirements 4 Individual Deferred Vested Pension Statement
More informationOctober 6, Prepared by:
HENRY TALAVERA HUNTON & WILLIAMS LLP FOUNTAIN PLACE 1445 ROSS AVENUE SUITE 3700 DALLAS, TEXAS 75202-2799 CHRISTINA CROCKETT HUNTON & WILLIAMS LLP 1751 PINNACLE DRIVE SUITE 1700 MCLEAN, VA 22102 October
More informationSUMMARY OF MATERIAL MODIFICATIONS TO THE UNIVERSITY OF NOTRE DAME EMPLOYEES PENSION PLAN
SUMMARY OF MATERIAL MODIFICATIONS TO THE UNIVERSITY OF NOTRE DAME EMPLOYEES PENSION PLAN This Summary of Material Modifications describes recent changes made to the University of Notre Dame Employees Pension
More informationMISSING PARTICIPANTS FILING INSTRUCTIONS
MISSING PARTICIPANTS FILING INSTRUCTIONS This package contains: Schedule MP Attachment A Attachment B Payment Voucher Instructions THE FORMS AND INSTRUCTIONS IN THIS BOOKLET APPLY TO STANDARD AND DISTRESS
More informationAdditional Funding Rules for Multiemployer Plans in Endangered or Critical Status (IRC section 432)
Additional Funding Rules for Multiemployer Plans in Endangered or Critical Status (IRC section 432) A plan is in critical status if one or more of the following conditions exist as of the first day of
More informationWhite Paper Defined Benefit Plan
White Paper www.selectportfolio.com Toll Free 800.445.9822 Tel 949.975.7900 Fax 949.900.8181 Securities offered through Securities Equity Group Member FINRA, SIPC, MSRB Page 2 Table of Contents... 3 What
More informationSummary Plan Description (SPD) (See 29 CFR b-2) To: Participants and those pension plan beneficiaries receiving benefits
LIST OF PARTICIPANT DISCLOSURES The following list is loosely based on the list presented by Eugene Holmes of Proskauer Rose during an ABA teleconference on disclosure. The list below is more comprehensive
More informationSuspension of Benefits under the Multiemployer Pension Reform Act of 2014
This document is scheduled to be published in the Federal Register on 06/19/2015 and available online at http://federalregister.gov/a/2015-14945, and on FDsys.gov [4830-01-p] DEPARTMENT OF THE TREASURY
More informationIRS issues final rules on suspension of benefits for multiemployer plans
Important information Plan administration and operation IRS issues final rules on suspension of benefits for multiemployer plans Who s affected These developments affect sponsors of and participants in
More informationPHILLIPS 66 RETIREMENT PLAN
PHILLIPS 66 RETIREMENT PLAN Retirement Plan of Conoco This is the summary plan description ( SPD ) for the Retirement Plan of Conoco ( plan ), and provides an overview of certain terms and conditions of
More informationTHE MECHANICS OF PENSION PLAN TERMINATIONS
RECORD OF SOCIETY OF ACTUARIES 1979 VOL. 5 NO. 4 THE MECHANICS OF PENSION PLAN TERMINATIONS Instructor: KARENL. MITCHELL,CRAIGA. OLNEY I. PBGC Requirements - Sufficient Plans - Insufficient Plans 2. IRS
More informationNortheast Georgia Health System, Inc. and Affiliated Companies Pension Plan
Northeast Georgia Health System, Inc. and Affiliated Companies Pension Plan Overview Introduction The Northeast Georgia Health System, Inc. and Affiliated Companies Pension Plan (the Plan) is designed
More informationHuman Energy. Yours. TM. Chevron Retirement Plan Supplement VV Chevron Mining Inc. Questa Division Hourly-Paid Employees
Human Energy. Yours. TM Chevron Retirement Plan Supplement VV Chevron Mining Inc. Questa Division Hourly-Paid Employees (SPD) The Unocal Retirement Plan (URP) was merged into the Chevron Retirement Plan
More informationRetirement Plan of Sentinel Transportation, LLC Summary Plan Description (Title III of the DuPont Pension and Retirement Plan)
Your Sentinel Benefit Resources Retirement Plan of Sentinel Transportation, LLC Summary Plan Description (Title III of the DuPont Pension and Retirement Plan) March 2012 The Retirement Plan of Sentinel
More informationPlanning a Standard Termination A Checklist for Practitioners
COLUMN PBGC Issues Planning a Standard Termination A Checklist for Practitioners Successfully completing the standard termination of a PBGC-covered pension plan requires careful planning. This article
More informationIRS Publishes Rules for Single-Employer Pension Plan Funding Relief
IRS Publishes Rules for Single-Employer Pension Plan Funding Relief IRS Notice 2011-3 provides guidance as to how a sponsor of a single-employer defined benefit pension plan may elect one of the two alternative
More informationAPPLICATION FOR PENSION
THE NATIONAL ASBESTOS WORKERS PENSION FUND 7130 COLUMBIA GATEWAY DRIVE, SUITE A COLUMBIA, MD 21046 TELEPHONE: 1(800) 386-3632 (410) 872-9500 APPLICATION FOR PENSION Please read instructions before completing
More informationWorkshop 13: PBGC / Reportable Events
Workshop 13: PBGC / Reportable Events Lauren R. Okum, MSPA, ASA, EA, MAAA Premier Actuarial Solutions Kurt F. Piper, FSPA, ASA, EA, MAAA Piper Pension & Profit Sharing Background ERISA 4043 requires plan
More informationTosco Corporation Pension Plan For Union Employees Formerly Employed by Monsanto Company. Title VIII of the ConocoPhillips Retirement Plan
Tosco Corporation Pension Plan For Union Employees Formerly Employed by Monsanto Company Title VIII of the ConocoPhillips Retirement Plan Effective Jan. 1, 2015 Tosco Corporation Pension Plan For Union
More informationSheet Metal Workers' National Pension Fund
Sheet Metal Workers' National Actuarial Valuation and Review as of January 1, 2015 This report has been prepared at the request of the Board of Trustees to assist in administering the Fund and meeting
More informationPension Protection Act of 2006: What to do in 2007
DECEMBER 1, 2006 VOLUME 2, NUMBER 12 Pension Protection Act of 2006: What to do in 2007 This newsletter looks to 2007 and highlights effective by (913) 685-0749 PPA changes some of which are already effective,
More informationSolutions to EA-2(B) Examination Spring, 2003
Solutions to EA-2(B) Examination Spring, 2003 Question 1 The PBGC Form 10 is used to notify the PBGC of a reportable event. A reportable event occurs if there is a failure to meet the minimum funding requirements
More informationGeneral Information for 401k Plan Participant
General Information for 401k Plan Participant Welcome to our 401(k) Guide for the Plan Participant! The information contained on this site was designed and developed by various governmental agencies, and
More informationPENSION PROTECTION ACT OF 2006
AN OVERVIEW OF THE IMPACT OF THE PENSION PROTECTION ACT OF 2006 ON QUALIFIED RETIREMENT PLANS Indiana Benefits Conference January 16, 2007 Indianapolis, Indiana E. Van Olson Introduction The Pension Protection
More informationSUMMARY OF PROVISIONS OF THE PENSION PROTECTION ACT OF 2006 AFFECTING DEFINED BENEFIT PLAN FUNDING AND HYBRID PLANS
SUMMARY OF PROVISIONS OF THE PENSION PROTECTION ACT OF 2006 AFFECTING DEFINED BENEFIT PLAN FUNDING AND HYBRID PLANS ISSUE PRIOR LAW PENSION PROTECTION ACT 1 COMMENTS SINGLE-EMPLOYER PENSION FUNDING IN
More informationSheet Metal Workers National Pension Fund
Sheet Metal Workers Withdrawal Liability Valuation as of December 31, 2017 This report has been prepared at the request of the Board of Trustees for the purposes of establishing the basis for withdrawal
More informationTraditional Defined Benefit Plan
The basics: Employer contributes an actuarially determined amount sufficient to pay each participant a fixed or defined benefit at his or her retirement. How It Works Employer contributes an actuarially
More informationMEMORANDUM TO CLIENTS. Key Provisions of The "Worker, Retiree, and Employer Recovery Act of 2008" A Bit More Than PPA Technical Corrections
MEMORANDUM TO CLIENTS December 19, 2008 RE: Key Provisions of The "Worker, Retiree, and Employer Recovery Act of 2008" A Bit More Than PPA Technical Corrections The Worker, Retiree, and Employer Recovery
More informationPPA Multiemployer Issues for Technical Corrections/Legislative History
March 13, 2007 PPA Multiemployer Issues for Technical Corrections/Legislative History 1. ERISA section 302(c)(1)(A)(i)/IRC section 412(c)(1)(A) (PPA sections 101/111) (minimum funding waiver): Delete "under
More informationNewspaper Guild of New York The New York Times
Newspaper Guild of New York The New York Times Benefits Fund Pension Plan Scholarship Fund SUPPLEMENT TO ANNUAL FUNDING NOTICE OF NEWSPAPER GUILD OF NEW YORK-THE NEW YORK TIMES PENSION PLAN (Plan) FOR
More informationWINDSTREAM PENSION PLAN SUMMARY PLAN DESCRIPTION. (January 1, 2018 Iowa Hourly Version for CWA 7172 and IBEW 204)
WINDSTREAM PENSION PLAN SUMMARY PLAN DESCRIPTION ( Iowa Hourly Version for CWA 7172 and IBEW 204) Table of Contents Pension Plan at a Glance 1 Introduction 2 Contact Information 2 Eligibility 3 Enrollment
More informationPrior to the enactment of the Economic. In considering whether to substitute a profit-sharing
In considering whether to substitute a profit-sharing BY CAROL A. WEISER & ROBERT J. NEIS Prior to the enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), money purchase
More informationPage. Page. Page. Page. Page. Page
29 CFR 2520.102-3 Contents of Summary Plan Description Checklist. This material is for the sole purpose of providing general information and does not under any circumstances, constitute legal advice. You
More informationTraditional Defined Benefit Plan
The basics: Employer contributes an actuarially determined amount sufficient to pay each participant a fixed or defined benefit at his or her retirement. How It Works Employer contributes an actuarially
More informationAutomatic Rollovers March 28 th Deadline is Here
Automatic Rollovers March 28 th Deadline is Here The Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) added a new rule section 401(a)(31)(B) of the Internal Revenue Code of 1986, as amended
More informationPension Protection Act Multiemployer Pension Plan Funding & Disclosure Issues
Pension Protection Act Multiemployer Pension Plan Funding & Disclosure Issues Barry Slevin, Slevin & Hart, P.C., Washington, DC Judith Mazo, The Segal Company, Washington, DC Bruce Perlin, IRS, Washington,
More information2018 Instructions for Schedule R (Form 5500) Retirement Plan Information
2018 Instructions for Schedule R (Form 5500) Retirement Plan Information General Instructions Purpose of Schedule Schedule R (Form 5500) reports certain information on retirement plan distributions, funding,
More informationReview of October 1, 2017 Actuarial Valuation Results
SEIU Local 1 & Participating Employers Pension Trust Review of October 1, 2017 Actuarial Valuation Results Presented by: Jessica A. Streit Vice President and Benefits Consultant John Redmond, ASA, MAAA,
More informationWorkshop 1: Variable Annuity Plans
1 Workshop 1: Variable Annuity Plans James E. Holland, ASA, FCA, EA, FSPA, MAAA Cheiron Andrew W. Ferguson, FSA, EA, FCA, MSPA, MAAA Altman & Cronin Benefit Consultants, LLC 2 1. Background Today s Agenda
More informationQualified Retirement Plan
Qualified Retirement Plan Standardized Adoption Agreement PO Box 2760 Omaha, NE 68103-2760 Fax: 866-468-6268 SIMPLIFIED PROFIT SHARING PLAN KEY INFORMATION WHEN ESTABLISHING A QUALIFIED RETIREMENT PLAN
More informationFIS BUSINESS SYSTEMS LLC STANDARDIZED PROTOTYPE DEFINED BENEFIT PLAN
FIS BUSINESS SYSTEMS LLC STANDARDIZED PROTOTYPE DEFINED BENEFIT PLAN TABLE OF CONTENTS ARTICLE I DEFINITIONS ARTICLE II ADMINISTRATION 2.1 POWERS AND RESPONSIBILITIES OF THE EMPLOYER... 16 2.2 DESIGNATION
More informationREQUIRED NOTICE NO ACTION NEEDED
April 25, 2017 REQUIRED NOTICE NO ACTION NEEDED Your pension is not changing. The Pension Protection Act of 2006 requires that an Annual Funding Notice be sent to all participants in the BorgWarner Inc.
More informationLoan Distribution Form
Loan Distribution Form READ THE ATTACHED IRS SPECIAL TAX NOTICE AND WRITTEN EXPLANATION OF QUALIFIED JOINT AND 50% CONTINGENT SUVIVIOR ANNUITY FORM OF BENEFIT BEFORE COMPLETING THIS FORM Please Note: Do
More informationDISTRIBUTION REQUEST TIMELINE
Distribution Request Form DISTRIBUTION REQUEST TIMELINE This form is to request a participant withdrawal from your retirement account with your employer. Whether you are rolling over the funds or taking
More informationSunGard Business Systems LLC Defined Benefit Prototype/Volume Submitter Plan DRAFT 10/30/15
SunGard Business Systems LLC Defined Benefit Prototype/Volume Submitter Plan TABLE OF CONTENTS ARTICLE I DEFINITIONS ARTICLE II ADMINISTRATION 2.1 POWERS AND RESPONSIBILITIES OF THE EMPLOYER... 18 2.2
More informationAll Participants, Beneficiaries in Pay Status, Participating Unions, and Contributing Employers
TO: FROM: All Participants, Beneficiaries in Pay Status, Participating Unions, and Contributing Employers Board of Trustees DATE: April 30, 2017 RE: Funding All Past and Future Benefits for Laborers and
More informationCarroll Health Group 401(k) Plan
Carroll Health Group 401(k) Plan Table of Contents Introduction... 3 Important Information About the Plan... 4 Joining the Plan... 5 Contributions to the Plan... 6 Managing Your Account... 12 Ownership
More informationIDP Profit Sharing 05/15/2017 Checklist
DOCUMENT PACKAGE a. Volume Submitter Plan and Trust as one document b. Volume Submitter Plan and Trust as separate documents c. Volume Submitter Plan Only-No Trust: (select one) Separate trust specifically
More informationBryn Mawr College Retirement Plan
Bryn Mawr College Retirement Plan Table of Contents Introduction... 3 Important Information About the Plan... 4 Joining the Plan... 5 Contributions to the Plan... 6 Managing Your Account... 10 Ownership
More informationPension Protection Act of 2006: Next steps and considerations for plan sponsors of single-employer defined benefit plans *
Pension Protection Act of 2006: Next steps and considerations for plan sponsors of single-employer defined benefit plans * Effective immediately or retroactively Provision Summary of Provision Next Steps
More informationSolutions to EA-2(B) Examination Spring, 2005
Solutions to EA-2(B) Examination Spring, 2005 Question 1 The Notice of Intent to Terminate must be provided to all affected parties other than the PBGC. See ERISA regulation 4041.21(a)(1). Question 2 Plans
More informationReporting and Disclosure Guide for Employee Benefit Plans. U.S. Department of Labor Employee Benefits Security Administration
Reporting and Disclosure Guide for Employee Benefit Plans U.S. Department of Labor Employee Benefits Security Administration This publication is available on the Internet at: www.dol.gov/ebsa For a complete
More informationGRIST InDepth: Funding strategies for DB pension plans to avoid lump sum and accrual restrictions revised
GRIST InDepth: Funding strategies for DB pension plans to avoid lump sum and accrual restrictions revised By Heidi Rackley and Scott Tucker of the Washington Resource Group and Bruce Cadenhead of the New
More informationSheet Metal Workers' National Pension Fund Actuarial Valuation and Review as of January 1, 2012
Sheet Metal Workers' National Pension Fund Actuarial Valuation and Review as of January 1, 2012 This report has been prepared at the request of the Board of Trustees to assist in administering the Fund
More informationWINDSTREAM PENSION PLAN SUMMARY PLAN DESCRIPTION. (January 1, 2016 Iowa Salaried Version)
WINDSTREAM PENSION PLAN SUMMARY PLAN DESCRIPTION ( Iowa Salaried Version) Table of Contents Pension Plan at a Glance 1 Introduction 2 Contact Information 2 Eligibility 3 Enrollment 3 Costs 3 Pension Benefit
More informationEGTRRA Restatement Questions and Answers
EGTRRA Restatement Questions and Answers Q: Why must qualified retirement plan documents be restated? A: The Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) made significant changes
More informationDOL and IRS REPORTING and DISCLOSURE
DOL and IRS REPORTING and DISCLOSURE 1 Annual Funding Notices Required by Multiemployer DBPs under ERISA 101(f), as Amended by WRERA * Requires disclosure of value of assets and liabilities as of valuation
More informationCentral Texas College District Employees Pension Plan and Trust SUMMARY PLAN DESCRIPTION Effective as of September 1, 2012
Central Texas College District Employees Pension Plan and Trust SUMMARY PLAN DESCRIPTION Effective as of September 1, 2012 INTRODUCTION This summary plan description ( SPD ) summarizes the major features
More informationReporting and disclosure guide
Multiemployer retirement and welfare benefit plans U.S. edition January 2018 Contents All ERISA plans... 1 Plan documentation... 2 Summary plan description (SPD)... 2 Summary of material modification (SMM)...
More informationPLAN SPONSOR NEWSLETTER
Benefits in Focus January 2018 PLAN SPONSOR NEWSLETTER Retirement Compliance Calendar Retirement plan sponsors are responsible for compliance with many ongoing reporting, disclosure and notice requirements.
More informationHenry M. Jackson Foundation. Defined Contribution Retirement Plan
Henry M. Jackson Foundation Defined Contribution Retirement Plan SUMMARY PLAN DESCRIPTION This document provides each Participant with a description of the Foundation's Defined Contribution Retirement
More informationTHOMAS JEFFERSON UNIVERSITY EMPLOYEES PENSION PLAN SUMMARY PLAN DESCRIPTION. May 2015
THOMAS JEFFERSON UNIVERSITY EMPLOYEES PENSION PLAN SUMMARY PLAN DESCRIPTION May 2015 11729v3 TABLE OF CONTENTS Page A. INTRODUCTION... 1 B. GENERAL INFORMATION... 1 C. DEFINITIONS... 2 D. HOW THE PLAN
More informationAutomotive Industries Pension Plan
Automotive Industries Actuarial Valuation and Review as of January 1, 2016 This report has been prepared at the request of the Board of Trustees to assist in administering the Fund and meeting filing requirements
More informationReporting and Disclosure Guide
Multiemployer Retirement and Welfare Benefit Plans U.S. Edition January 2018 Buck Consultants LLC Contents All ERISA plans... 1 Plan documentation... 2 Summary plan description (SPD)... 2 Summary of material
More informationNational. as of December 31, this report may not be applicable for other purposes.
Sheet Metal Workers National Pension Fund Withdrawal Liability Valuation as of December 31, 2012 This report has been prepared at the request of the Board of Trustees for the purposes of establishing the
More informationSummary Plan Description. For the. Retirement Benefit Plan of American Airlines, Inc. For. Employees Represented by the
Summary Plan Description For the Retirement Benefit Plan of American Airlines, Inc. For Employees Represented by the Transport Workers Union (TWU) of America, AFL-CIO Publication Date: July 2015 The Retirement
More informationU.S. Retirement Program
U.S. Retirement Program The purpose of the U.S. Retirement Program is to provide income for your retirement based on eligible salary and length of service with the Company. Benefits may be payable from
More informationPioneer Investments Retirement Plans
Pioneer Investments Retirement Plans Profit Sharing & Money Purchase Pension Plan Adoption Agreement Booklet l Opinion Letters l Amendment Summary l Instructions for Completing PPA Adoption Agreement l
More informationARTICLE XI EMPLOYER WITHDRAWAL LIABILITY RULES & PROCEDURES
ARTICLE XI EMPLOYER WITHDRAWAL LIABILITY RULES & PROCEDURES 11.1 GENERAL The Pension Fund is a multiemployer defined benefit pension plan regulated by the Employee Retirement Income Security Act ( ERISA
More informationWorkshop 13 - When the Pension Promise Fails - Unilateral or Forced Reduction of Accrued Pension Entitlement
Workshop 13 - When the Pension Promise Fails - Unilateral or Forced Reduction of Accrued Pension Entitlement HOWARD PIANKO, ESQ. hpianko@seyfarth.com SEYFARTH SHAW LLP NEW YORK OFFICE AN OVERVIEW - U.S.
More information