Changing Distribution Elections Post-Commencement

[Guest cac1134]

A participant in pay status under a defined benefit plan wants to change his form of benefit. The plan doesn't provide for such a change, but the Administrator has empathy for the guy. My question is could the plan so provide? Although an administrative nightmare, I think yes, but subject to the consent requirements as of the time of original election. In this case, the guy elected J&50%S and was married. Now, divorced and wants LO. What do you folk think?

[david rigby]

You've got to be kidding! Many plans could be amended to permit changes post commencment, but why would you do so? "Empathy" is hardly a reason to put the plan at risk for the second guessing of most retirees.

[masteff]

Be careful of opening Pandora's box. How many particpants in pay status might be similarly situated? Has anyone else in pay ever asked for this before and been denied? Rather than repeat it, re-read Pax's last sentence above.

[jpod]

Has anyone given any thought to how the former spouse/survivor annuitant might have to say about such a change?