Partial distributions v lump sum only at retirement

[Guest gocobra]

Anyone have statistics on number of people who take advantage of the partial withdrawal option at retirement??

We are contemplating changing our distribution options from LS only to LS and Partial distribution. However, the Pres, wants to know if there would be any additional cost associated with allowing the partial distributions after attaining "x" age in lieu of LS distribution. (how many people would stay in the plan so they could get $$ out sooner, thereby incurring additional admin fee while the money is in the account) as apposed to them taking it out comptletely and eliminating the mantainance feel.

[Belgarath]

I don't have any statistics - only that the vast majority do not choose partial distributions. I'm guessing 98% for us. But we don't formally track the percentage. This may vary substantially depending upon the demographics of the group and plan.

As far as administrative expense, the DOl recently said it was ok to charge the per participant fees to the participants' accounts, as long as they have terminated and been given an opportunity to receive their distribution, so I'm not sure the fee issue is necessarily a big one?

I believe this was DOL FAB 2003-3, but I don't have my copy handy.