The following questions and answers are intended to provide you with details on the EGTRRA restatement process.

When will the approved plans be available for use?
We expect to start sending out the approval letters and the approved plans by the end of this week (April 11, 2008). We are currently reconciling the approval letters we received with what was submitted to the IRS. This reconciliation process also entails checking that the plan numbers assigned by the IRS for your specific approval letters match your plans. Also, as part of the development of the software systems, changes were made to the plan documents, as recently as the end of March.

When will the EGTRRA language be available in the Relius Document Systems?
Our goal is to have the language available in both the PC and the ASP systems at the beginning of June. We have been updating the systems for quite some time and want to ensure that they are tested adequately. This includes testing not only the language but also the software enhancements that have been made for these restatements (such as the language conversion tool that will map provisions from your GUST plans to the new EGTRRA plan documents). In order to ensure timely and accurate releases, we will likely release some products earlier than others (e.g., the 401(k) systems may be released before money purchase/target systems are released). Our goal is to accommodate your need to have the systems as soon as possible while minimizing the need for frequent releases of updates.

What is the restatement period?
Employers who are entitled to use the 6-year cycle for pre-approved defined contribution plans must restate their plans by April 30, 2010 (See IRS Announcement 2008-23). This is also the date by which such employers need to submit their plans for determination letters, if desired. The submission of pre-approved plans is generally made using Form 5307. The IRS released a new Form 5307 last week and we will therefore not be able to include this latest form in the initial release of the document systems. However, the old Form 5307 may continue to be used through September 30, 2008, and we will update the system to reflect the new forms prior to that date.

What other support can SunGard Relius provide for the restatement process?
This summer, we will have seminars on the EGTRRA prototype and prototype-formatted documents. In addition, we offer adoption agreement guides, printing services, and Communication Pamphlets on the restatement and other industry topics. If you wish for more help with the restatement process, you may consider our EGTRRA plan document outsourcing services. We will include information on all these products and services in your plan package.

What type of training or help guides will be available for the updated systems?
We have developed Quick Start Guides to assist Relius Documents users with the new system enhancements. This includes the new GUST to EGTRRA conversion process. The guides will be posted under the FAQ section of the Support area on our Web site and will also be available in the help section of your system.

In addition to the Quick Start Guides, a free recorded training session covering the GUST to EGTRRA conversion process will be available early next month.

What is the status of 403(b) plan documents?
403(b) Prototype:
All 403(b) basic plan documents and adoption agreements have been updated with key PPA features, such as EACAs and QACAs, as well as the final 403(b) regulations. These documents have been sent via e-mail to all 403(b) Prototype customers. Additionally, we are in the process of updating the 403(b) Prototype Supporting Forms System for the Relius Document system users. This update is anticipated to be released by the end of the second quarter 2008.

403(b) Individually Designed Plans (IDP):
We have recently informed all 403(b) IDP users of a future update to the plan document. Please read the communication that was sent out to all customers.

Note: 403(b) documents are not qualified plans, have their own separate deadline (1/1/09), and that there is no IRS review process for these plans (other than a private letter ruling).

When will the ESOP and Defined Benefit Plan (for cash balance plans) be updated for Cycle C submissions?
In order to focus resources on the pre-approved defined contribution and 403(b) plan systems, we will not update these plans until the third quarter of this year. This also gives us the ability to make changes resulting from IRS comments on submissions made in Cycle A (many of which are just now being reviewed by the IRS).

What is the status of the submission of the Prototype and Volume Submitter Defined Benefit plans?
The prototype and volume submitter DB plans were submitted to the IRS by January 31, 2008. The review process will be lengthy, but we expect to be able to provide you with a status on these plans later this year.

UPDATE ON INTERIM AMENDMENTS AND PPA

1. Final 415 Regulations Amendment for Defined Benefit plans
We have completed the drafting of the Final 415 Regulation amendment, including the Pension Funding Equity Act of 2004. Pursuant to guidelines set forth by the IRS in Rev. Proc. 2007-44, an amendment to conform to these regulations would generally be needed by the due date of the tax return (plus extensions) for the taxable year of the employer that ends with or within the limitation year beginning on or after July 1, 2007. Thus, for a calendar tax year/plan year/limitation year, the amendment would be required by the due date of the tax return for the 2008 year (which would be at some point in 2009). However, an amendment may be needed sooner than the general deadline if there are IRC § 411(d)(6) anti-cutback issues due to the amendment.

This amendment also includes language intended to comply with Treasury Regulation § 1.411(d)-3, which was released as a result of the US 7th Circuit Court of Appeals case, Heinz v. Central Laborers' Pension Fund (303 F.3d 802, 805 (7th Cir. 2002)). Despite the inclusion of this language, however, any amendments made to a plan that are impacted by these regulations will need to be carefully reviewed in order to ensure that the regulations are not violated.

2. Gap period income on excess deferrals
The IRC § 402(g) regulations require that distributions of excess deferrals (deferrals that exceed the applicable dollar limit under IRC §402(g)) for 2007 and later tax years include gap period income. PPA 2006 eliminated the requirement that gap period income be distributed on corrective distributions for a failed ADP/ACP test beginning with 2008 plan years. PPA did not eliminate the gap period income requirement with respect to distributions of excess deferrals. However, it is expected that PPA Technical Corrections will be enacted this year and that law includes the elimination of gap period income on excess deferrals beginning in 2008. In IRS Notice 2008-30, the IRS stated that employers will not need to adopt an amendment to reflect gap period income on excess deferrals until plans are updated for PPA (see below).

3. PPA
Revenue Procedure 2007-44 clarifies that interim amendments for PPA are not needed prior to the last day of the 2009 plan year. This includes any elective PPA provisions such as automatic enrollment or non-spousal beneficiary rollovers. PPA provisions will, however, be included in any summary plan descriptions or forms that are generated through the EGTRRA Relius document system.

We will draft a PPA amendment for ongoing plans (i.e., for plans that are not being terminated) later this year or early next year. The reason for this delay is because further guidance is expected from the IRS on various PPA provisions. Thus, any amendment prepared today would need to be updated to reflect the latest guidance. Delaying the amendment to 2009 does not create any "anti-cutback" issues due to legislative relief provided in PPA.

4. Qualified Optional Survivor Annuity
Beginning in 2008, plans that are subject to the qualified joint and survivor annuity requirements will need to offer a qualified optional survivor annuity (QOSA). While many of our plans already offer an alternative annuity that would meet the PPA requirements, the new requirement may necessitate a modification to existing joint and survivor annuity notices. For forms generated using the GUST Corbel documents (as distinguished from the GUST FDP and PPD documents), no modification to the forms is required (see Notice 2008-30). We will, however, be providing updated forms as part of the ERISA Forms volume of the Pension Library. All forms generated through the EGTRRA document system will include conform to the QOSA requirements. Plan provisions relating to qualified optional survivor annuities will be part of the PPA amendment (see above).

5. Terminating plans
Terminating plans must be updated to reflect all provisions of the law that are effective as of the date of termination. We are working on an update to the termination amendments that we previously provided. If you subscribe to Pension Library or ERISA Forms on Disc, then we will provide these amendments to you when they are available.

EGTRRA Pre-Approved Plan Workshop. During July, this program will be offered in six cities for the Corbel document and in four cities for the PPD document. Each document is presented separately in a full-day session. In addition to a line-by-line review, using the nonstandardized 401(k) Adoption Agreement, we offer suggestions for completion of options, discuss new features, and differences, in the Prototype and prototype-formatted Volume Submitter Plans (including cross-testing and multiple employer plans), and review the basic plan document provisions. Online registration for these EGTRRA programs will be open shortly.