411(d)(6) Protected Benefits

[Guest Effie Clark]

I have a PS plan that times distributions to terminees who are less than 100% vested to be after 5 1-year breaks in service. Anyone who terminates and is 100% vested, is eligible to receive their benefit after the valuation date following their DOT.

The client wants everyone to wait for 5 1-year BIS but I don't think I can can amend the plan to change the timing for 100% vested terminees without violating 411(d)(6).

If I understand correctly, I can amend the plan going forward and any contributions and earnings applied to a participant after the amendment date can wait the five years for distribution but not anything before.

Does this sound right?

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EAC

[Bill Berke]

Yes. You are going to carry two accounts - before and after the amendment. Is your client ready for the employee relations fallout and additional expenses and liability?

[Guest Effie Clark]

I haven't given the client the news yet. I wanted to be certain my thinking was in line. Thanks.

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EAC