Guest meeh3704 Posted October 1, 2008 Share Posted October 1, 2008 I am working on a plan provision that permits a 'make-up payment' to be paid on the SERP commencement date. The Plan currently pays in the form of a life annuity, but a make-up payment (lump sum payment equal to the SERP benefit multiplied by the number of months difference between the start of the db benefit and the SERP commencment date) is triggered if a participant's db payments commence before the SERP commencement date. In sum, the difference in time is made up by one lump-sum payment on day one of the SERP benefit. My question is whether the make-up payment changes the time/form of payment which will then require 12 mo./5yr delay. Does this cause the payment to not be a life annuity? Link to comment Share on other sites More sharing options...
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