IRC 411(a)(9)

[Guest PGH.ERISA]

I have been talking to an IRS agent reviewing a cash balance plan, and she said that IRS agents have now been specifically told to look for language in DB plans that comports with 411(a)(9); i.e., the normal retirement benefit must be at least equal to the early retirement benefit that would have been payable to the participant. She is insisting, however, that this should apply to a plan that has no early retirement provision, but that allows deferred vested participants to commence receiving distributions before normal retirement age.

1. I can't find anything on this in published IRS guidance. Can anyone provide a cite as to whether or not 411(a)(9) applies to deferred vested benefits?

2. If 411(a)(9) does apply, how would it work in practice? If a deferred vested person leaves at age 30 but only starts benefits at 65, does the plan have to look what the accrued benefit would have been at every age in between, using the interest rate in effect each year?