12AX7 Posted April 9, 2009 Posted April 9, 2009 Can the lump sum option be removed from a DB plan? I have one participant that has reached NRA has not not yet made a distribution election. Would I have to preserve the option for this one participant and be able to remove the option prospectively?
Mike Preston Posted April 9, 2009 Posted April 9, 2009 Can't be removed from an ERISA plan. You can eliminate it with respect to future accruals only.
david rigby Posted April 9, 2009 Posted April 9, 2009 ... but the plan's FTAP might be so low that PPA-required restrictions may apply. Tread carefully. 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.
12AX7 Posted April 9, 2009 Author Posted April 9, 2009 A strange as this may sound, we're the former TPA for the plan (client left on friendly terms), so I won't be able to verify funding status. I appreciate the advice.
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