Repaying Pension Benefit to get service reinstated

[Guest fcdeacy]

Our Pension Plan currently allows participants to repay their lump sum benefit upon rehire in order to have their service reinstated. My question is whether or not this practice can be eliminated. Is this feature considered a "protected benefit"? Any guidance would be appreciated, especially location of any legal guidance, etc...

Thanks,

Fred

[Mike Preston]

Reading the regs under 411 regarding protected benefits is a good place to start.

I would be very surprised if it is considered a protected benefit.

[SoCalActuary]

I understand that you must give this option for anyone non-vested or partially vested.

But you do not have to give this option to a fully vested participant.

[david rigby]

Is this plan covered by IRC 411? could this plan be sponsored by a governmental organization?

Is collective bargaining relevant? If so, even if no other impediment, it may not be possible to make such change without agreement by the bargaining unit.