Wessex

On or before December 31, 1998, depending upon how the plan will be amended, an employer can give employees a choice of whether to commence benefits or not OR automatically commence benefits. (I question whether automatic commencement is permissible under the ADEA once it is no longer statutorily mandated, but I don't suppose too many people would object in a defined benefit plan.) After December 31, 1998 (or the date the amendment is adopted, if later) the plan can provide an option for age 70 1/2 commencement or eliminate it. I see nothing in the regulations or other guidance that, without participant election, would permit payments to be suspended after December 31, 1998 for employees who attained age 70 1/2 on or before that date.

P.S. The right to request a benefit statement once a year is in addition to, and not fulfilled by, the statement referred to by David Rigby.

Section 105(a) of ERISA requires a plan administrator "to furnish to any plan participant or beneficiary who so requests in writing, a statement indicating, on the basis of the latest available information-- (1) the total benefits accrued, and (2) the nonforfeitable benefits... The statement does not have to be provided more than once per year. See the statement of ERISA rights in your summary plan description.

The merger of the companies is not relevant. Were the plans merged or amended? If the plans were merged or amended, the change to GATT rates could be effective as early as the date the merger or amendment was signed. Certain grandfather rules could apply even if the plans were merged or amended; e.g., if the date the applicable GATT rate is determined is more than two months from the date the applicable PBGC rate would have been determined or if the plan provided for interest rates in addition to the PBGC rate.

I believe the employer's proposed action would violate the ADEA and Section 411 of the Code. This seems risky and foolhardy when payments can be suspended lawfully for participants who attain age 70 1/2 in plan years beginning after 1999.