QPSA vs. QJSA

[Guest Robert Collins]

An employee terminates employment and the employee could have taken his vested value when he left employment but did not take the distribution. Should the employee receive a QPSA or QJSA notice? If the employee dies after such termination of employment do QPSA rules still apply?

[Guest Dook]

QPSA/QJSA notification is not triggered by termination. Notice is required at the time a participant makes their beneficiary designation and, if they choose a non-spouse beneficiary prior to age 35, on the first day of the plan year in which they will attain age 35.

If this person dies, the form of benefit distribution payable will be a QPSA unless the beneficiary elects payment in some other optional form available under the plan.