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Continued separate record keeping for merged MPPP


Moe Howard
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When a MPPP is merged into a PSP, those former MPPP assets then become owned by the PSP.

I had heard in the past that the PSP still has to continue to maintain a separate accounting (by participant) of those merged MPPP assets. So that someday if a participant terminates employment and wants a lump sum distribution from the PSP, the PSP must be able to tell how musch of his distribution is from the former MPPP assets.

Can any one justify why such extra recording keeping is necessary? Is the PSP really required by law to be able to know how much of a distribution is from former MPPP assets?

Can someone direct me to messages concerning this ?

thanks

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The need for separate accounting arises because the normal form of the benefit in the MPPP is a j & S annuity. Separate accounting can be avoided by terminating the MPPP and rolling over the assets to the PSP or by making the J & S the normal form of benefit for the PSP benfits.

mjb

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