I have a similar question to one posted earlier. This is in reference to a single employer, defined benefit plan. A former employee who is currently receiving a pension under the aforementioned plan will be brought back to help with training as a consultant for a month or two. The employee retired last year. The employer and the former employee have entered into a consulting agreement, whereby the consulting work is not considered reemployment under the plan. The question is, are there limits on the total compensation a former employee who is participating in the employer's pension plan may be paid? What is considered compensation? Do bonuses received at the time of retirement (a holiday bonus given to all employees) count as compensation?
