Participant Election of Life Annuity Under a Non-QJSA DC Plan

[Guest Tom:]

If a participant elects a non-QJSA life annuity payment form under a DC plan that is not generally covered by the QJSA rules, is the plan required to offer a QJSA form of benefit? Likewise, is the plan required to offer a QOSA?

I don't think so since the participant has already selected a benefit form and it seems unlikely the participant would want to change. It seems it would be a wasted effort to offer a QJSA or QOSA when the participant has already selected another form of life annuity. But what do you disclose in the QJSA notice?

Also, if the particpant's spouse won't consent to the non-QJSA form of benefit selected by the participant, it seems that the particpant would have to select one of thee non-life annuity benefit forms already offered by the DC plan, and not a QJSA or QOSA. Otherwise, the plan would be forced unwillingly to into providing QJSA and QOSA benefit forms.

[Bird]

If the participant elects a non-QJSA annuity, then the plan must be offering a non-QJSA annuity. If the plan offers a non-QJSA annuity, then it must offer/default to the QJSA annuity, and also offer the QOSA. No?

[PLAN MAN]

Disagree with Tom, Agree with Bird

Language from one of our plan documents: In the event a participant elects to receive payment by distribution of a nontransferable annuity payment, then payment will automatically be made in the form of a qualified joint and survivor annuity unless the participant elects not to receive payment in such annuity form and the participant's spouse, if applicable, consents to such election.