Conditions on a lump sum distribution

[Guest Grumpy456]

A defined contribution plan provides a participant with the right to take a distribution upon attainment of age 65 (but not before, even if their employment terminates prior to age 65). Can the plan sponsor amend the plan so that distribution is available prior to age 65 upon termination of employment only if the distributee waives his/her right to sue the plan for anything (including an ERISA or ADEA violation)?

I found some guidance in the 411 regs that says a distribution prior to the mandatory commencement date (since voluntary) may be subject to restrictions so long as the restrictions are objective.

[Guest Harry O]

I believe you can do this. See Reg. 1.411(d)-4, Q&A 6(b)(2) (plan may condition the availability of a 411(d)(6) protected benefit upon objective conditions specified in the plan such as execution of a covenant not to compete) and Reg. 1.401(a)(4)-4 (for purposes of determining whether an optional form of benefit is currently available, conditions to receipt of the benefit - such as executing a waiver under ADEA - are ignored).

[RCK]

This must be a dumb question. How does a plan commit a ADEA violation?

[Bird]

This must be a dumb question. How does a plan commit a ADEA violation?

(Not a dumb question.) Maybe by reducing benefits or contributions for older participants.

This might be a dumb question...

Can a participant waive ERISA or ADEA rights, such as the right to sue?