Comment on FR Doc # E9-11481

Please clarify when the reduction or suspension of safe harbor contributions can be effective. Per Notice 2000-3, A-6, the text is written as such in regards to suspending or reducing MATCHING contributions: "(2) The reduction or elimination of matching contributions is effective no earlier than the later of (i) 30 days after eligible employees are given the supplemental notice and (ii) the date the amendment is adopted;" A popular interpretation of that, in an example, is: Employer provides the supplemental notice to employees on June 1, 2009. He adopts the amendment (i.e. signs it) by July 1, 2009. The suspension (of matching contributions) can be effective July 1, 2009. Per the Proposed Regulations in regards to suspending or reducing NONELECTIVE contributions the text is written as such (for example, under Explanation of Provisions on page 23136 of the Federal Register): "(2) the reduction or suspension of safe harbor nonelective contributions is effective no earlier than the later of 30 days after eligible employees are provided the supplemental notice and the date the amendment is adopted;" The absence of "(i)" and "(ii)" is causing some confusion (unless the original Notice is not being interpreted correctly). I've read articles where others in the Third Party Administration and similar industries are interpreting the above to mean (as an example): Employer provides the supplemental notice to employees on June 1, 2009. He must also adopt the amendment (i.e. sign it) by June 1, 2009. Then, the suspension can be effective July 1, 2009. What is the correct interpretation? Thank you for your time.