Bri Posted August 24, 2021 Share Posted August 24, 2021 If a plan wants to amend its rule for crediting interest to folks taking a lump sum (before: pro rata credit up through payment date, after: no such partial year credit), is that deemed a cutback even if done only prospectively on future distributions? I could argue that my annuity value drops if I won't get that extra interest credit from 1/1 of the year I turn 65 up through the actual NRA and take my dough. But if anyone knows of an exception or if there's been any IRS guidance, that'd be cool to learn. Thanks. --bri Link to comment Share on other sites More sharing options...
Mike Preston Posted August 24, 2021 Share Posted August 24, 2021 Yes, it's a cut back. No can do. You can change the interest crediting rate on hypothetical allocations not yet made. Bri 1 Link to comment Share on other sites More sharing options...
CuseFan Posted August 25, 2021 Share Posted August 25, 2021 Precisely Kenneth M. Prell, CEBS, ERPA Vice President, BPAS Actuarial & Pension Services kprell@bpas.com Link to comment Share on other sites More sharing options...
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