Pension19

Okay, so to clarify this was an in-service request. The plan is valued quarterly. Due to the current market situation, a decision was made to pay 70% of the vested balance which was still a significant amount and the distribution will be time weighted. We wanted to allow room for a loss on the plan assets. After the above question was asked, another situation has come about. A terminated participant has asked for a distribution, again, the last quarterly valuation was 1/31/2020, the process has been to pay the terminated participant based on the last valuation. Since the market is down we cannot in good faith pay that amount and are contemplating paying 75% of the 1/31/2020, again time weight the distribution and then after the next valuation 4/30/2020, pay the remaining balance to the terminated participant. We understand that we could do an interim valuation of the assets as of 3/31 but where do you draw the line in doing interim valuations?

Question to those above. If the account is a pooled account and the plan time weights the distribution, is it necessary to do an interim for a participant requesting a distribution? The policy is to pay in-service, time weight it and check that the request is no more than 80%. Normally the request is a dollar amount that does not exceed 80% of the participant's 100% vested balance.