QJSA Question

[sdix401k]

A DC plan is a combo plan with a DB plan and has recently been amended to add an optional form of benefit besides lump sum, a QJSA.

If a participant in the plan's spouse will not sign off on the waiver when the participant terminates employment, what options does the participant have if they do not want an annuity option?

Lets assume that the husband and wife are not in any divorce they just disagree????

Is the fact that the benefit is an optional form override any requirement. I understand in the DB plan the QJSA is the normal form of benefit.

Thanks

[Bird]

A DC plan is a combo plan with a DB plan and has recently been amended to add an optional form of benefit besides lump sum, a QJSA.

That's at least a little bit unusual; the only reason I can think of for making that change is to be consistent with the DB plan.

If a participant in the plan's spouse will not sign off on the waiver when the participant terminates employment, what options does the participant have if they do not want an annuity option?

Take the annuity form of benefit, or get the spouse to agree to something else. Not much of a choice.

Lets assume that the husband and wife are not in any divorce they just disagree????

Rightly or wrongly, Congress says that the spouse must consent to any other type of distribution when a QJSA is an option. It's a grand PITA when the spouse doesn't go along, but it's hard to blame them, no matter how happily married they might be at that time.

[sdix401k]

Thanks!!

This what I would have thought as well. That is the case to be consistent with the DB.