Guest Eris@rab Posted September 18, 2008 Posted September 18, 2008 are COLA's allowed to be cutback? what about if there is an unreduced pension at age 62 with 30 years of service -- can we eliminate that if we have an unreduced pension at age 55 with 10 years of service?
david rigby Posted September 18, 2008 Posted September 18, 2008 The IRS considers a COLA to be part of the accrued benefit. For example, see GrayBook Q&A 2006-32 and 96-39. BTW, so does the PBGC. See BlueBook Q&A 98-2. Also, see recent court case: Gary Williams v. Rohm and Haas Pension Plan Seventh Circuit, decided 8/14/2007 Case. No. 06-2555 I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
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