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Showing results for tags 'Benefit Distribution'.
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Employer sponsors a generous DB plan. Terminated employee received the lump sum actuarial benefit. It amounted at about 2 years of salary and happily informed her former coworkers about the Employer generosity. Guess what happened next? Several other employees promptly submitted their resignation! Employer would like to amend the plan and remove the optional lump sum form of distribution. QUESTION: If such amendment is effective - let's say- January 01, 2016, would it apply for all employees that terminate employment after that date? Or only for those hired after the effective date of the amendment? ( like in the case of vesting schedule amendment) Thank you for your help.