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Owner Waiver


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Can a majority owner that is in-service and past NRA and elects to receive a monthly annuity, or alternatively elects a LS but only receives the allowable monthly annuity due to the 110% restriction, then after commencement of the monthly payments waive that benefit in order to make the plan sufficient for termination? This is a PBGC covered plan.

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Good question.

PBGC instructions here: http://www.pbgc.gov/documents/500-instructions.pdf. See page 23.

A majority owner may "...elect to forego receipt of all or part..." Neither this paragraph nor the referenced regulation contains any restrictions on a majority owner who may be in-pay status. Note important discussion about spouse consent.

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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