CEB Posted September 3, 2003 Posted September 3, 2003 Is there a minimum age to be in a DB plan in the 1970 & 1980s? Any legislation? Or was is just based on the plan rules?
mwyatt Posted September 3, 2003 Posted September 3, 2003 Pre-ERISA, plan could do whatever was in the document, as I recall. Post-ERISA, could use a minimum age of 25; this was reduced to 21 effective either in 84 or 85 (short-term memory loss) by REA.
david rigby Posted September 3, 2003 Posted September 3, 2003 ... assuming the plan is covered by ERISA. Govt. plans are not, and might have a different minimum age requirement. I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
MGB Posted September 3, 2003 Posted September 3, 2003 Yes, REA changed the 25 to 21, effective plan years after 12/31/84. There are also special rules for educational institutions: If the benefit is 100% vested after one year of service, then minimum age is 26. For pre-REA, the minimum age in this situation was 30. Special transition rules applied to both of these when changed.
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