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accruals after NRA in gov plan


Gary
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Does anyone know if the 411 post normal ret age accruals apply to State Plans? i.e. for a teachers plan? I thought there may be something in ADEA that might require a gov plan to apply 411 post NRA accruals.

This has to do w/ receiving the greater of AB or age 65 act increased AB.

Gary

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Generally, all of IRC 411 does not apply to a governmental plan, except to the extent that state law, or the plan itself, might apply it.

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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Section 411 does not apply, but ADEA does. Thus, you could have a problem if you cut off accruals at normal retirement age.

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The opinions of my postings are my own and do not necessarily represent my law firm's position, strategies, or opinions. The contents of my postings are offered for informational purposes only and should not be construed as legal advice. A visit to this board or an exchange of information through this board does not create an attorney-client relationship. You should consult directly with an attorney for individual advice regarding your particular situation. I am not your lawyer under any circumstances.

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As a follow up w/r/t ADEA. ADEA mentions applicability to emplyers of DB Plans. So I presume it is safe to say that employers and plan sponsors includes State Ret Systems. i.e. they fall under the rules associated w/ ADEA.

That being the case. Section 4 of ADEA covers accruals after NRA. And it appears to me that ADEA also includes the rules in 411 pertaining to suspended benefits at NRA and required actuarial increases in addition to not being allowed to cease accruals on account of age. So if my interpretationof ADEA Section 4 is accurate, then gov plans would be required to furnish suspension of benefits notices and would be required to provide greater of accd ben or act increased ben. I doubt gov plans are doing this.

Any comments or thoughts w/r/t these allegations.

I would be happy to forward the particular secion of ADEA if anyone is interested.

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I agree that local government plans must comply with the ADEA. State plans might be excepted from complying by Kimel v. Florida Board of Regents. It is not clear to me how Kimel affects a local government participating in a state plan. I have read articles stating that the local government probably would be protected by Kimel, but the reasoning is not compelling.

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