Seven years ago, Alten Tool and Die installed a profit shari…

Seven years ago, Alten Tool and Die installed a profit sharing plan and a managed care plan. Three years ago, the director of Alten retired. The new director was an outside hire who changed several aspects of the business’s organization but left the existing benefit program in place. During the past 5 years, tensions among union and nonunion workers resulted in about 10% turnover in the workforce. The current set of workers is about 3 years younger, on average, than the previous set of workers. Which step in the employee benefit planning process has the director of Alten neglected?

Joan Garvey owns Garvey Management, a property management co…

Joan Garvey owns Garvey Management, a property management company. Last year, Garvey Management installed a qualified defined benefit plan. A small portion of the plan is invested in real estate. Joan hired Hank Thomas, an actuary, to evaluate the plan on an annual basis. Hank’s lease in his old office space ran out, and Joan offered to let him occupy an office rent-free in one of the buildings that is in the qualified plan’s portfolio. This arrangement would be an acceptable transaction under ERISA.