Late Retirement Adjustment

[mal]

Once a multiemployer plan enters critical status does 305(f)(2) of ERISA prohibit it from making actuarial adjustments to those participants who retire past normal retirement age?

If not, can the late retirement increase be treated as an adjustable benefit?

[Guest Smash]

I would say no to both questions unless there is an actuarial subsidy involved (not the same as an actuarial adjustment). The benefit must be paid at NRD. Instead of giving a late retirement increase, the plan can pay a rasd with interest adjustment or pay into escrow account. These are essentially equivalent benefits.