Benefits, Rights, and Features Question

[Guest DCquestioner]

Plan currently doesn't allow for a distribution prior to actual retirement or separation from service even if the participant has attained normal retirement age.

One of the partners in the firm has attained normal retirement age and would like a distribution. If the plan is amended to allow for in-service distributions upon attainment of normal retirement age, is it an issue if no one else has attained normal retirement age? Is that a benefits, rights, and features issue?

[J Simmons]

It is a BRF. I wouldn't be concerned unless later the plan is amended a second time to remove the NRA payout option (as to benefits accruing after that). The two amendments taken together might be a discriminatory series of amendments depending on all the facts and circumstances surrounding the two amendments. Treas Reg 1.401a4-5.

[Guest Pension Girl]

It is a BRF. I wouldn't be concerned unless later the plan is amended a second time to remove the NRA payout option (as to benefits accruing after that). The two amendments taken together might be a discriminatory series of amendments depending on all the facts and circumstances surrounding the two amendments. Treas Reg 1.401a4-5.

I think that in service withdrawals at normal retirement age, age 59 1/2 etc are protected benefits, not BRF's. Protected benefits are not subject to age and service conditions.