joel Posted July 5, 2014 Share Posted July 5, 2014 Can a QLAC be issued by a public Defined Benefit plan? Link to comment Share on other sites More sharing options...
Belgarath Posted July 7, 2014 Share Posted July 7, 2014 No. The regulations as issued do not apply to defined benefit plans. The preamble does invite comments for ongoing discussion as to whether something along these lines would be desirable for DB plans, so there is apparently going to be ongoing discussion on this issue. Link to comment Share on other sites More sharing options...
joel Posted July 7, 2014 Author Share Posted July 7, 2014 Thank you, however, I was referring to the issuance of these QLAC by defined benefit plans where the premium is paid from defined contribution plan and IRA assets. For example: retiree is receiving his/her defined benefit pension and has $500,000 in his defined contribution plan account. The former employer sponsors both plans. Can the defined benefit plan write the QLAC? Link to comment Share on other sites More sharing options...
Belgarath Posted July 8, 2014 Share Posted July 8, 2014 I still say the answer is no. As a matter of curiosity, what's the big deal about having it issued in the DB? Since both DC plans and IRA's can utilize QLAC's, why not do it in the DC plan or roll to an IRA and do it in an IRA? Link to comment Share on other sites More sharing options...
joel Posted July 8, 2014 Author Share Posted July 8, 2014 DB plans sport substantially higher annuity income rates than commercial insurers. Link to comment Share on other sites More sharing options...
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