Halting pension payments

[dmwe]

A retiree started taking monthly pension payments out of the DB plan at age 58 when she retired. Now that small amount of income is precluding her from receiving some low income assistance. She'd like to suspend payments but the plan document doesn't really contemplate that situation. Is she stuck because her election is irrevocable, or is there some rule out there that would allow her to halt monthly payouts until a future date?

Thanks

[david rigby]

Very unlikely that the plan permits "halt" or "suspension".

I've seen similar examples where the sponsor amended the plan to permit the participant a one-time lump sum option, thus removing the monthly amount from her financial statement, but this might not accomplish the goal.

(The plan is not required to do anything, except making the monthly payment as previously provided.)

[Andy the Actuary]

Here's a crazy idea: Change her FIT withholding to reduce net pension check below threshold. Then, don't apply for a refund of taxes until later. This seems legal and may work depending upon how "income" test is defined.

[eeyore]

I've seen some large governmental plans allow the recipient to voluntarily suspend payments, but it strikes me as very bad public policy. Is she able to work? If so, she could return to work and the benefit might be suspended due to that fact, depending on plan language. But of course then she wouldn't qualify foir assistance because of her employment income. Catch 22.

[dmwe]

I'm not sure of her ability to work. It appears that she's in need of some financial assistance and retired at age 58 so it could be health related.

Thanks to everyone for you comments and suggestions.