75% Joint and Survivor

[tuni88]

OK, so we have to add a new payment alternative to our DB plan (by the end of this year, I think) - a 75% J+S. The only J+S we have now is the 50% and we require that the spouse sign off if the employee wants something other than the 50%.

Question: Suppose the employee now wants to choose the 75% J+S. Can we just pay it or must we get the spouse to sign off?

PS - Does anyone know what problem is solved having to add a 75% J+S to our plan?

[Andy the Actuary]

Spousal consent is not required if J&75% actuarially equivalent to QJSA. OSJA rules effective for Plan Years beginning after 12/31/2007, so in calendar year case, beginning rather than end of 2008.

To answer your P.S., problem resolved is that your client will now be complying with the law.

[tuni88]

OK, so if someone retires now from our calendar year plan we need to provide it. Thanks.

I'm trying to figure if The Law is an ass. To whoever thought this up: What were you trying to remedy? Wouldn't a 76% J&S have done a better job?

[david rigby]

To whoever thought this up: What were you trying to remedy? Wouldn't a 76% J&S have done a better job?

Are you under the impression that the making of law, and/or the law itself, is logical?

[tuni88]

No, but I presume someone somewhere was trying to accomplish or fix something. If that someone is reading this please explain yourself. I'm holding my breath until I get your answer.

Blue ...... bluer ...... exhale!