An updated version of our sample Summary of Material Modifications(SMM) regarding the payment of plan expenses is posted on our Web site. This SMM takes into account the DOL guidance issued in Field Assistance Bulletin 2003-3, which permits a plan to charge the account of a particular participant for certain plan expenses incurred by or attributable to that participant.

We have updated the SMM in two respects.

1. We have added language advising participants that the plan will charge terminated participants for their pro rata share of the plan’s reasonable administrative expenses, even if the employer elects to pay these expenses with respect to current employee-participants. This language takes into account recently-issued Rev. Rul. 2004-10, in which the Revenue Service approved the concept of separately charging former employee-participants.
   
   
2. We have added a “checkbox” option to state a plan that charges a distribution processing fee for distribution expenses upon termination of employment will eliminate (“zero out”) a small account balance where the distribution processing fee equals or exceeds the participant’s vested account balance. While the Revenue Service has not specifically addressed this issue, the suggested language offers a practical solution to an administrative problem.