FAQ 796: Restating plans timing - should I wait to put plans on DGEM?


We are currently using the ASCi system for a few plans (about 10). We will be moving all of our plans over to the system (about 200), but wanted to make sure that we make this transition smoothly and keep in mind the restatement period. I am wondering if we restate all of our plans on the ASCi system now if they will also need to be restated again in the next year or so. Can you offer any suggestions in this area?


We have tried very hard to anticipate any changes that will be required to the documents to prevent having to do any additional amendments. The ASCi documents contain interim amendments for the 415 regulations as well as the PPA provisions. By putting in the PPA provisions now - you will not need to make a subsequent amendment next year for the PPA provisions.

We can never anticipate whether future law changes may require additional amendments. For example, the new HEART Act legislation may require a snap-on amendment to address the qualified plan issues for military personnel. However, there should be no significant amendments required at least through the end of 2009 and you should not have to restate any of your documents once they are on the ASCi system until the next amendment phase in 2012. If amendments are necessary - we will add them to the document as snap-on amendments and, where possible, will adopt them as sponsor-level amendments so that no ER signature will be required. Our goal is to limit the need for additional amendments at the ER level where possible. So if you are holding off putting your plans on the DGEM system because of the need to make additional amendments - I don't think there is any advantage to waiting as the current document has all of the necessary amendments at least through the end of 2009.