Prior to the current lawsuit, however, the sponsors
had no obligation to sell more than 15% of the apartments after the conversion had taken place.
So service providers must reac through the plan sponsors
and get acquainted, maybe well acquainted, with the plan participants to be sure to serve and influence them -- and to make sure they retain those assets.
In many instances, their low statutorily governed rents were a direct cause of sponsor
bankruptcies in the early 1990's, when rents did not cover the sponsor
's obligations for maintenance or mortgage payments.
Any operational violation (whether or not considered insignificant) corrected by the plan sponsor
by the end of the plan year following the plan year in which it occurred is a nondisqualifying event.
They can help sponsors
reach markets that the fund cannot enter directly, either because of plan constraints or because the market is illiquid or too small.
These enhancements are part of the ongoing process at CitiStreet of refining, developing and enhancing technology to improve service for both plan sponsors
and their participants," said Sandy McCarthy, CitiStreet president of retirement services.
A possible disadvantage of this alternative is that the carrier owns the assets, even though the assets are protected in a separate account, which makes it less attractive than when the sponsor
owns the securities.
MCTV/CTV joined us in 2000 as a media sponsor
, and they have helped us considerably to promote our events and to raise the profile of this program.
There are two specific reasons why an employer may consider an alternate-funding plan: The possibility of improved cash flow is a strong advantage, and the plan sponsor
may generate premium tax savings and reductions in administrative or risk expense.
In this instance, Pellish suggests using a "window," whereby the sponsor
can impose some restrictions, such as limiting the percentage of the employee's account allowed in the risky fund.
should take action now to compile the information they will need to file their Forms 5500.
Allowing plan sponsors
to restrict payment options solely to a lump sum would be particularly helpful where the plan sponsor
has historically not allowed extended payment options, yet a few participants enjoy an extended payment option as a protected benefit from a former plan that was merged into an existing plan.