NOVEMBER 2006 Pension Plan tip of the month...

Year End Requests for Data

Annually, around the time of your company’s retirement plan year end, you receive a package in the mail from us requesting certain data. While most often a plan’s year end is December 31, your plan year end may differ.

At first glance, this request can seem to be “a bit much” and confusing. Please be assured that we only ask for information vital to proper plan testing and reporting. We try to make our questionnaire and census request as user friendly as possible, but since the rules covering qualified retirement plans are complex, questions are not only expected, they are encouraged. If you have any questions when you receive the package please contact your Account Executive and they will be happy to help you.

Staring with the 12/31/2006 year end, we are making modifications to our request for data. Since these changes are intended to make the year end process easier for you, please contact us if you do not wish to participate in these default changes:

• Unless you direct us not to or do not have appropriate access, we will E-mail the year end request for data in a PASSWORD PROTECTED file. The request will be sent to the listed contact in our records.

• We have expanded the sections concerning Mergers, Acquisitions, and Control Group Issues. These situations are invariably complex, so please be sure to contact us as soon as possible regarding any purchase or change in ownership.

• Unless you have specifically directed us otherwise, year end reports will be produced in a CD format.

Please be sure to contact your Account Executive if you wish to opt out of the above upgrades. We want to make the process as simple for you as possible.

When you receive the request for data, please take special care regarding the compensation reported for your plan. Your plan’s definition of pay is included in the year end package as well as your plan’s document.  Our website (www.tpagroup.com) contains valuable information explaining compensation. Your plan document will also indicate if special deferral elections are allowed from bonus pay.

It’s important to make sure that all eligible compensation is reported, including bonuses, if not specifically excluded by your plan’s definition of compensation. If bonuses are not excluded, it is vital that deferrals are withheld from this form of pay as you would with any other paycheck.  Please note that some plans allow a “special” election by the participant for bonus payments.