CLE Pension

Looking for opinions on what to do with DB RMD when marital status is unknown. IF you were going to force someone into payment, and did not know if the participant was married or not, would you set up with a life annuity form of payment or a QJSA with spouse date of birth the same as participant's? What if the normal form of payment in the plan, for an unmarried participant, is a 10-year certain and life?

Thank you all. I will check the 401a9 rules, which may be at play here. The official option in the plan document is Contingent Annuity, not Joint and Survivor Annuity, so wondering if that changes anything. It seems to operate in the same fashion as J&S the way it is written. Contingent Annuity - A Contingent Annuity provides a reduced amount of monthly income for the life of the Participant and, in the event of his or her death, an amount of monthly income equal to 50%, 66 2/3%, or 100% thereof as elected by the Participant for the life of his or her Beneficiary.

Thank you! That is what I understand as well, but was conflicted by the plan document stating it could only be take as a lump sum. And no, it has not been done incorrectly. It's actually a start-up plan that administration is setting up. I appreciate your input.

Cash balance plan's normal form is an annuity, but for the in-service distribution provision, the plan document specifically states it can only be taken as a lump sum (makes perfect sense). That said, are you still required to display the various annuity amounts on election forms and include QJSA notice, etc.?

The normal form for an unmarried participant is life annuity, so I presume a QJSA with a non-spouse beneficiary is not an option?

Along these lines, regarding a non-spouse beneficiary for J&S benefit - in this case, the spouse is deceased and the participant wants to elect a J&S with a a 50/50 split of two children as beneficiaries. If it is even permissible, it can't be common. Any thoughts would be appreciated. Thank you.