Normal ret age amendment

[Gary]

I am reviewing a plan valuation (new plan to me with 3 participants) this plan did the following in applying the change in NRA from 55 to 62:

1. Added an unrelated ERA (i.e. 55 & 25) for AB as of 1/1/09.

2. For the couple of employees under age 55 the plan essentially determined the AB to be the actuarially increased benefit from age 55 to age 62 with wearaway. It seems reasonable.

3. For the employee over age 55 (this one seems a little dicey to me) who has over 25 years of service they consider such person eligible for immediate retirement for the AB up to 1/1/09 (that seems fine) and additional accruals after 1/1/09. It seems that the additional accruals after 1/1/09 may be eligible for NR at age 62 instead of immediately.

Any observations?

I know I can revisit Notice 2007-69 (I beleive that is the one).

Thanks.

[AndyH]

Was a 204(h) notice issued? If not, are future benefit accruals increased actuarially?

[Gary]

I will check re: 204(h), but I am curious about item 3 as well? i.e. that participant being elig for immediate benefit of future accruals too.

thanks

[AndyH]

I agree with you - it seems that your approach to 3 is the way it should have been written under normal circumstances.

[FAPInJax]

Not sure about #2. There was a discussion that the participants are still entitled to the NRA 55 accrued benefit with choices. Now, for valuation purposes and looking at the ultimate benefit it would be a different matter.

[AndyH]

Maybe I was unclear, but I do agree that the right to retire and collect the same benefit at age 55 with the same choices must be preserved through an early retirement provision. I thought that was what was meant by #1, but maybe not.

[Gary]

The plan allows for an immediate benefit actuarial equivalent benefit at termination so that should handle it.

thanks