standard definition?

[Guest mikeak]

I'm involved in a debate about the definition of 'benefit commencement date' in DB plans generally. I know plan documents come into play, but are there any industry 'standards' or cites or articles of a generally accepted definition, such as we have with 'annuity starting date' (or is that a good definition itself?)

[MGB]

In what context are you using "benefit commencement date?" "Annuity starting date" has legal definitions and shouldn't be used in other contexts to mean something other than the legal definition. It sounds like you are using benefit commencement date as something else, like a more generic term? Or, is this coming from some rule that you need a definition for?

[Guest mikeak]

Probably generic, in the context of this example:

Participant terminates employment 12/2002 at age 55 with a vested benefit. Plan allows early retirement, ppt. sends in election paperwork to begin receiving benefit in annuity form starting 01/01/2003. First check is cut 03/01/2003 and includes retroactive payments for January and February.

Is 01/01/2003 their 'benefit commencement date'? Or is the 'proper' term for it something else? Or can we call it that if we want?

Thanks.

[MGB]

The proper term is "annuity starting date." See the recent (July 16) final regulations under 417(a)(7) defining when you can do this. Depending on the timing of issuing the QJ&S notices in relation to the ASD, this could be a regular ASD, or a retroactive-ASD. The fact that back payments were made does not automatically make it a retroactive-ASD. A retroactive-ASD is a very defined term under these regulations (and cannot be done without explicit language in the plan authorizing it; there are a list of other requirements that also must be met in order to make use of a retroactive-ASD).