Defined Benefit Plans

[Guest mkqm07]

A participant in a plan had an NRD of 8/1/99. The participant continued working until 10/31/00. Now the participant wants a distribution. I know how to figure the accrued benefit, but am having trouble deciding how to figure the lump sum distribution. Is the APR used at age 65 or at his current age? I researced my reference material and can't find anything, anywhere about it. Help.

[mwyatt]

Typically APR at Deferred Retirement Age. What does your plan say about deferred retirement benefits? Greater of benefit computed as if LRD was NRD and actuarial equivalent of benefit at NRB? If so, the benefit reflects increase for deferral already.

[Guest mkqm07]

The document says greater of actual benefit and prior year benefit actually increased. So APR at current age is used, correct?

[david rigby]

That sounds like the most likely scenario.

But, is 415 an issue? If so, don't forget to check that lump sum limit.