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HomeMy WebLinkAboutDocumentation_Pension Public Safety_Tab 07_02/01/2010INTERNAL REVENUE SERVICE P. o. sox 25oa CINCINNATI, OH 45201 Date: ~ ~c...~W-b-fir- lb~ 2CJ©9 VILLAGE OF TEQUESTA C/O BONNI S JENSEN ESQ 400 EXECUTIVE CENTER DR STE 207 WEST PALM BEACH, FL 33401 '~...+ i ~r~:~ THE L~i~1 L~; ~~~~~ ~F I FEaRY &.~ENSE~~, ~-~-~ Dear Applicant: DEPARTMENT OF THF3 7`RLASUFLY Employer Identification Number: 59-6044081 DLN: 209062011 Person to Contact: MARGARET M. SAITO ID# 95038 Contact Telephone Number: (626) 312-3628 Plan Name: VILLAGE OF TEQUESTA PUBLIC SAFETY O FFICERS PENSION TRUST FUND Plan Number: 002 Refer Reply to: SE:T:EP:RA:VC:7554 Response Date: December 28, 2009 Thank you for the information you recently furnished about the plan identified above. Unfortunately, we need additional information before we can complete the processing of your request for a determination letter. Please furnish the information or amendments indicated on the enclosed list. Please submit the requested information or amendments by the response date. If we da not hear from you by that date we may either (1) close your case as incomplete, or (2) process your application on the basis of the infor- mation available, which could result in a determination that your plan is not qualified far favorable tax treatment. If you have any questions concerning this matter, or cannot meet the response date, please contact the person whose name and telephone number are shown above. When you send any information we requested or if you write to us with questions about this letter, please provide your telephone number and the most convenient time far us to call if we need to contact you. Please mail the information requested in this letter to the following address: Internal Revenue Service TE/GE Division 9350 Flair Drive, 2nd Floor E1 Monte, CA 91731-2885 Letter 1955 (DC/PL) -z- VILLAGE OF TEQUESTA Thank you far your cooperation. Sincerely yours, -~ w~~G Employee Plans Specialist Enclosure: List of Data Needed Letter 1955 (DC/PL) LIST OF DATA NEEDED PUBLIC SAFETY OFFICERS PENSION PLAN A. Please submit the following amendments for the GUST proposed document: 1. For section #19: If the employer's intent is to incor~rate the provisions of 415 and the 415 regulations by reference, the plan must state that it is incorporating the limitations of 415 and its regulation by reference. It should furthermore state that this provision supersedes anything to the contrary. If the employer does not wish to incorporate by reference, the plan must state the limitations of 415 2. Section 19(1)(B) of the proposed GUST plan document should be deleted. It indicates that this section is effective for distributions after December 31, 2001. 3. Section 19(3) of the proposed GUST plan document should be amended to provide that the cost of living adjustments aze made in accordance with section 415(d} of the Code. Increases far cost of living adjustments aze made at the same time and same manner as 415(d), except that the base period is the calendar quarter beginning October 1, 1993, and any increase which is not a multiple of $10,000 shall be rounded to the next lowest multiple of $10,000. 4. For treatment of excess annual additions for pick-up contributions, I am still waiting for guidance. 5. Section 14 of the "GUST" plan document contains the DROP provisions. It appears that these provisions were not enacted until June 9, 2005. Therefore, this provision should not be part of the GUST restatement. The plan should be amended to remove this provision from the GUST restatement. If the employer adopted interim amendments for the DROP provisions, please submit a copy of these amendments. 6. Section 23(2) of GUST plan document should be amended to provide for 100% vesting for plan termination. It is not a requirement under 401(a) of the Code for govenarnent plans to vest 100% if the actuarially required contributions aze discontinued. Whether or not the actuarial required contributions are made is a function of 412 of the Code. If the plan is subject to 412, there are penalties placed on the employer for failure to timely fund the plan. The plan would be required to vest 100% upon complete discontinuance of contributions. The plan should be amended accordingly. 7. Section 22(3)(B)(3) ofthe GUST plan document should be amended to provide that the domestic relations order comply with the provisions of 414(p}(1)(a)(i) of the Code. The plan may not determine whether or not the domestic relations order Page 1 of 3 is qualified. It is up the employer to determine whether or not the domestic relations order meets the provisions of 414(p)(1)(a)(i). 8. Section 26 of the GUST plan document provides that for forfeiture of benefits and rights under the plan if the participant's employment is terminated by reason of his or her admitted commission, aid or abatement of certain offenses detailed in the plan. While a plan may provide for the forfeiture of benefits upon conviction of certain offenses prior to attainment of normal retirement age, there is question as to whether or not this provision applies to the forfeiture of benefits after the attainment of normal retirement age. If this provision applies to forfeiture prior to the attainment of normal retirement age only, the plan should be amended accordingly to clarify this provision. B. Please submit the following amendments for the EGTRRA proposed document: 1. For section #19: If the employer intent is to incorporate the provisions of 415 and its regulations by reference, the plan must state that it is incorporating the limitations of 415 and its regulations by reference. It should provide that this provision supersedes anything to the contrary, If the employer does not wish to incorporate by reference, the plan must state the limitations of 415. 2. Section 19(3) of the proposed EGTRRA plan document should be amended to provide that the cost of living adjustments are made in accordance with section 415(d) of the Code. Increases in cost of living adjushnents are made in the same time and manner as 415(d), except that the base period is the calendar quarter beginning July 1, 2001 and any increase which is not a multiple of $5,000 shall be rounded to the next lowest multiple of $5,000. 3. For the treatment of excess annual additions for pick-up contributions, I am still waiting for guidance. 4. Section 23(2) of the proposed EGTRRA plan document should be amended to provide for 100% vesting on plan termination. It is not a requirement under 401(a) to vest 100% if the actuarially required contributions are discontinued. Whether or not the actuarial required contributions are made is a function of 412 of the Code. Tf the plan is subject to 412, there are penalties placed on the employer for failure to timely fund the plan. The plan would be required to vest 100% upon complete discontinuance of contributions. The plan should be amended accordingly. 5. Section 22(3)(B)(3) of the EGTRR.A plan document should be amended to replace "income deduction order" with "court order that complies with the provision of section 414(p)(1)(A)(i) of the Code". If the court order does not Page 2 of 3 comply with the provision of 414(p)(1)(A)(i) of the Code, it would not be considered a distributable event. 6. Section 26 of the EGTRRA plan document provides for the forfeiture ofbenefits and rights under the plan if the participant's employment is terminated by reason of his or her admitted commission, aid or abatement of certain of certain offenses detailed in the plan. While a government plan may provide for the forfeiture of benefits upon conviction of certain offenses prior to attainment of normal retirement age, there is a question as to whether or not this provision applies to the forfeiture of benefits after the attainment of normal retirement age. If this provision applies to forfeiture prior to the attainment of normal retirement age only, the plan should be amended accordingly to clarify this provision. Page 3 of 3 TxE LAw o~ICES of PERRY CSC JENSEN, LLC ANN H. PERRY aperry(c~perryJensenlaw.com January 13, 2010 VIA UPS OVERNIGHT DELIVERY Margaret Saito, ID #95-02557 Voluntary Compliance Specialist Internal Revenue Service TE/GE Division 9350 Flair Drive, 2nd Floor EI Monte, CA 91731-2885 BONNI SPATARA JENSEN bsjensen~perryjensenlaw.com Re: VCP Request for Village of Tequesta Public Safety Officers Pension Trust Fund DLN: 209062011 Employer Identification Number: 59-6044081 Our File No.: 1011.0053 Dear Ms. Saito: This firm is the legal counsel for the Village of Tequesta Public Safety Officers Pension Trust Fund. This letter is in response to your request dated December 10, 2009 (enclosed) and the list of data needed included with that letter. Thank you for the extension of time for our reply until January 14, 2010. In response to the List of Data Needed: A. GUST Plan Document amendments 1. See Working Restatement with GUST amendment (attached as Exhibit A) at Section 19 (Maximum Pensions). 2. See Working Restatement with GUST amendment (attached as Exhibit A) at Section 19(1)(8). 3. See Working Restatement with GUST amendment (attached as Exhibit A) at Section 19(3). 4. For treatment of excess annual additions for pick-up contllbutions, we will await your guidance. 400 EXECUTIVE CENTER DRIVE, SUITE 207x+ WEST PALM BEACH, FLORIDA 33401-2922 PH: 561.686.6550 c Fx: 561.686.2802 ~~ .~.r Margaret Saito, ID #95-02557 Voluntary Compliance Specialist, VC Group 7554 Intemal Revenue Service VCP Request for Village of Tequesta Public Safety Ofi=lcers pension Trust Fund DLN:209062011 Employer Identification Number: 59-6044081 January 13, 2010 Page 2 of 3 5. See Working Restatement with GUST amendment (attached as Exhibit A) at Section 14. The language has been removed and the section number has been reserved. Attached as Exhibit B is a copy of the Plan document adopted December 11, 2003 providing for the DROP Plan. See Section 14 of Exhibit B. 6. See Working Restatement with GUST amendment (attached as Exhibit A) at Section 23(2). Please note that Section 412 of the Intemal Revenue Code ("Code")does not apply to governmental plans pursuant to the provisions of §412(e)(2)(B) (formerly Code Section 412(h)(3). 7. See Working Restatement with GUST amendment (attached as Exhibit A) at Section 22(3)(8)(3). 8. See Working Restatement with GUST amendment (attached as Exhibit A) at Section 26. This section refers to conviction for offenses occurring before retirement. Attached as Exhibit C is a copy of Fiorida Statutes §112.3173 and Exhibit D is the Florida Constitution Arkicle ll, Section 8. B. EGTRRA Plan Document amendments 1. See Working Restatement with GUST amendment which has been incorporated into the Working Restatement with EGTRRA Amendment (attached as Exhibit E) at Section 19 (Maximum Pension). 2. See Working Restatement with GUST amendment which has been incorporated into the Working Restatement with EGTRRA Amendment (attached as Exhibit E) at Section 19(3). 3. For treatment of excess annual additions for pick-up contributions, we will await your guidance. 4. See Working Restatement with GUST amendment which has been incorporated into the Working Restatement with EGTRRA Amendment (attached as Exhibit E) at Section 23(2). Please note that Section 412 of the Internal Revenue Code ("Code") does not apply to govemmental plans pursuantto the provisions of §412(e)(2)(B) (formerly Code Section 412(h)(3). Margaret Saito, ID ~5-02557 Voluntary Compliance Specialist, VC Group 7554 Internal Revenue Service VCP Request for Village of Tequesta Public Safety Officers Pension Trust Fund DLN: 209062011 Employer Identification Number: 59-6044081 January 13, 2010 Page 3 of 3 5. See Working Restatement with EGTRRA Amendment (attached as Exhibit E) at Section 23(3)(B)(3). 6. See Working Restatement with EGTRRA amendment (attached as Exhibit E) at Section 26. This section refers to conviction for offenses occumng before retirement. Attached as Exhibit C is a copy of Florida Statutes §112.3173 and Exhibit D is the Florida Constitution Article II, Section 8. Should you have any further questions, please do not hesitate to contact me. Sin rely yours, Bonni S. Jense BSJ/adt Enclosures as noted Copy to: Chairman and Secretary Lori McWilliams Betty Laur H:\Tequesta PS 1011\IRS Detemtlnatlon LetterlPost 5ubmission\2010-01-13 !RS Cvr Ltr - VCP req.wpd