RMDs from Defined Benefit Plans

[Guest wolfman]

1. Must a DB Plan using annuity payments to satisfy RMDs offer optional forms of benefit (assuming participant still active)or may the plan use the normal form calculation?

2. What is the measurement date for the annuity calculation since the DC method is not used? I assume it would be based on the vested PVAB as of the latest valuation date in the calendar year prior to the year 70-1/2 is attained. The payments would be the same thereafter.

Any comments, thoughts are appreciated.

[MGB]

This becomes a standard distribution that, once elected, is the forma of distribution in retirement. I.e., the participant must choose from all of the available forms (as long as the all meet the minimum distribution requirements) along with proper J&S notices, etc.

The PVAB and the valuation of it are irrelevant; this is a defined benefit plan.

[Guest wolfman]

Thank you. So you are saying that you essentially treat the RMD individual as if they have terminated and are making their election of form of benefit. Also, you would base the calculations on the accrued benefits up to the annuity starting date. Is this correct?

If the form selected does not satisfy the RMD requirements then, do you then deny this option?

Thanks for your help!