better benefits

build better benefits MAXIMIZE YOUR INVESTMENT

IN YOUR EMPLOYEES

with the

NATIONALLY

RECOGNIZED

EMPLOYEE BENEFITS

TEAM.

KEY CONTACTS Audra J. Ferguson-Allen

Partner Indianapolis 317-236-2249 [email protected]

icemiller.com

Robert L. Gauss

Partner Indianapolis 317-236-2133 [email protected]

Lisa Erb Harrison

Senior Counsel Indianapolis 317-236-5806 [email protected]

Ice on Fire

PAYMENT OF EMPLOYEE BENEFIT PLAN EXPENSES SETTLOR ( EMPLOYER ) VS. PLAN COSTS QUICK REFERENCE GUIDE COST EXAMPLES Costs for employer decisions relating to formation, design, and termination of plan, such as legal and consulting fees for design or termination options and studies

SETTLOR (EMPLOYER) COSTS X

X

Costs to implement employer plan decisions Costs for Government Accounting Standards Board (GASB) required statements

X X

Plan administration expenses, such as the fees for an outside administrator Costs for discretionary employer design decisions, such as adding participant loans

X

Costs for discretionary plan amendments to implement business decisions, such as amending the plan to add an early retirement incentive window

X X

Certain costs to provide plan and benefit communications, such as a plan description and general participant benefit statements and reports Costs to negotiate with union for plan implementation or design changes

X X

Cost to maintain the tax-qualified status of the plan, including required amendments and IRS filings, and IRS determination letter Costs for consultants to review alternatives for complying with changes in the law

PLAN COSTS

X

Reasonable fees to cover the cost of processing plan loans or hardship withdrawals

X

Legal fees in evaluating whether a domestic relations order is qualified

X

Preparation of fiscal impact notes plan is legally obligated to prepare (e.g., administration and federal law compliance costs)

X

Calculation of benefits payable under different plan options (e.g., joint and survivor, single life annuity, lump sum, etc.)

X

Charges associated with benefit distributions paid on a periodic basis (e.g., monthly check writing expense)

X

These materials are intended for general information purposes only and do not constitute legal advice. The materials should not be used or relied upon as a substitute for a review of applicable statutes, regulations, rulings and court decisions. The reader should consult legal counsel to determine how laws apply to specific situations. These materials were prepared in January 2018, and, consequently, will not reflect changes in law subsequent to that date. Attorney Advertising Material | © 2018 Ice Miller LLP.