MP & PSP Plan Mergers - Optional Forms of Benefit

[Guest Laura12345]

I am in the process of merging a MPPP with a PSP. I am clear that balances are accounted for separately even following the merger. But, in putting the post-merger plan document together I am bumping into conflicts, and I am not sure how to handle them.

For instance:

There is no means for using one set of distribution options for the MPPP source, and another set of options for the PSP source (non-standardized prototype). Is the standard that once the plans are merged, the old MPPP optional forms of benefit must apply to the "new" PSP as a whole?

And what about pre-retirement, in-service withdrawals?

Is there any guidance on how to handle these differences when you are not working in an individually designed plan environment?

[Guest taj32z]

In the document that we use, there is a separate schedule called protected benefits. I put the J&S provision and In-Service w/d for only PS account balances in there. Check with the document provider to see if they have something similar.

[Guest Laura12345]

Thank you. I will look into it.

If the document provider does not have a protected benefits schedule, but I can access one elsewhere, would I bump into the "individually designed plan" issue?

[Guest Jennifer Reid]

For ease of administration and to reduce the margin for error and misunderstanding, we generally recommend that all sources be subjected to the same distribution rules upon plan merger except where prohibited (as in an in-service withdrawal option in the psp prior to age 59 1/2 not allowed from mppp source). Also, check the plan document. Some provide that a plan not subject to the joint and survivor annuity rules cannot be merged with a plan that is subject to them.