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Showing results for tags 'early retirement'.
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I am the AP on a Separate Interest QDRO. The( ex-spouse)participant is 54years young, employed at Chrysler. According to the plan, I can start receiving my portion of the funds on the participant’s earliest retirement age. I was told, by the representatives at Benefits Express, I would receive a kit in the mail, with instructions so that I can commence payment. The next day I received a call saying I can not start receiving the funds until 01/15/2027, when the participant is 62 years young, Chrysler’s normal retirement age. The QDRO has the following: I am confused as to why I can’t start receiving my portion. Please help me understand what is going on.
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Suppose a plan allows for an unreduced early retirement benefit as early as age 55. Normal Retirement Date is age 65. The plan was frozen a couple of year's ago. A participant is currently working and is now eligible to receive an unreduced pension benefit, but the plan does not allow for in-service distributions. Assume that 415 limits don't apply to this person. If this participant waits until a later date (perhaps age 65) to commence their benefit then there has clearly been some benefit "left on the table", but has an impermissible forfeiture of benefits occurred? What if the plan offered in-service distributions? Does it make a difference if the participant is a former participant who consequently is not currently receiving a paycheck from the plan sponsor? -
If a defined benefit plan is terminating and it has an Early Retirement Age of a certain age plus a number of years, do they have to continue to count years of service after the termination date to determine when someone is eligible for an early retirement benefit?
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Employer has two DB plans--a Union Plan and a Non-Union Plan. For employees who transfer out of the union, and therefore accrue benefits under both plans, the Non-Union Plan benefit is calculated by counting all the employee's service as if it were non-union service and then reducing the Non-Union Plan accrued benefit by the benefit the employee accrued under the Union Plan. Because the plans have slightly different ERFs, this offset arrangement can cause the benefit actually payable from the Non-Union Plan (i.e., after the offset) to be lower at NRD than it was at some early retirement dates. Does paying the lower Non-Union Plan benefit at NRD violate the requirement in § 411(a)(9) and Regs. § 1.411(a)-7©(6) that the normal retirement benefit be the greater of the benefit payable at (i) NRD or (ii) any early retirement date? If you consider the aggregate benefit payable from both Plans, the benefit doesn't decrease; nor does it decrease if you look at the Non-Union Plan's formula standing alone. It's just the offset arrangement that causes the Non-Union Plan benefit to decrease. Any thoughts appreciated. Cheers.
