Different benefit statements for different ees?

[David MacLennan]

Is there anything improper about providing some employees with more information on their DB plan participant benefit statements than other employees? For example, the lump-sum present values? Client fears some ees will quit just to collect their DB benefit. For select employees, client wants to inform them of the value of their benefit and the annual increase, in more meaningful terms than the annuity amount payable at NRA. I was considering sending 2 sets of statements, and the client could then pick and choose. I'm going to recommend he consult with legal counsel, but was hoping to get opinions here.

[Lynn Campbell]

I think it is legal, assuming these statements were not requested by the participants. Based on experience with my clients, I wonder if the employees might compare notes and take issue with the difference in content?

[david rigby]

Might? Count on it!

[mbozek]

What would the client do if an ee who did not recieve the LS value on his benefit statement asks for it? I dont think the plan admin can say no. Given the current employment environment how many ee will quit their jobs just to collect a pension benefit and start over?

[Everett Moreland]

This could be a violation of the duty to administer the plan in the exclusive interest of participants and beneficiaries, particularly if your fee is paid with plan assets. The lump sum value would be withheld or given to advance the interests of the employer. Also, I know this is stretching to the breaking point, but what if the benefit statements are a right or feature and the employer gives lump sum values to HCEs but not NHCEs? It seems to me that if the IRS or EBSA were to discover this they would be tempted to shake the plan until something falls out.