Retroactive Annuity Start Date

[BTG]

The election of a retroactive annuity starting date must be voluntary.  As such, a participant must also be offered a future annuity starting date.  Is it sufficient for the distribution paperwork to make clear that such a future date is available, or does it actually need to contain both benefit calculations (i.e., retroactive and future)?  I was under the impression that the numbers were necessary, but I cannot seem to find a cite.  Thanks!

[ishi]

I am looking at this currently as well.  In my case, the plan document indicates that late retirement benefits begin the first of the month following DOT (if after NRD).  The plan added RASD language later to "fix" the QJSA notice requirement.  As far as I can tell, the document does not allow for a future ASD.  As you imply, the regs are not as clear as we would like.

[My 2 cents]

And then there are the situations where you don't find a terminated participant until they are 72 years old.  Aren't retroactive payments needed to cure the RMD violation?

[Calavera]

Under the final regulations, spousal consent is required if the spousal portion of the optional form of benefit chosen at the RASD is less than the QJSA that is available currently (e.g., if the 50% survivor benefit would be $100 if the benefit were taken currently, but only $90 if the benefit were taken retroactively, the spouse must consent to the retroactive ASD). It implies you have to provide current calculation for a proper spousal waiver.

I think when a participant retires you have to provide a current calculation (not some future ASD). The RASD calculation is optional if plan calls for it. Then a participant has a choice of retiring as of now, or retiring as of RASD.