Death Benefits under PPA
Posted 09 January 2009 - 09:17 AM
1. Spouse is beneficiary - I believe spousal options are annuity or 1/2 annuity and 1/2 lump sum.
2. Non-spousal beneficiary - (children, parents, estate or other) - I think lump sum must be paid.
I am interested in other opinions as I didn't catch this kind of detail in what I see in the regs.
Posted 09 January 2009 - 10:09 AM
Posted 09 January 2009 - 10:29 AM
It looks like another PPA pothole to me. Or maybe a sinkhole. Think maybe installments over 5 years would satisfy the rule?
Posted 09 January 2009 - 10:48 AM
Again, I argue the fix is not to amend PPA but to scrap it.
Posted 12 January 2009 - 09:35 AM
Posted 12 January 2009 - 09:45 AM
That's not farfetched at all. In fact, with economic conditions being what they are, the participant probably can't afford to stay dead for very long.
One solution to this particular pothole would be to prohibit participants from dying.