change of benefit options

[Guest Smokin]

The anti-cutback regulations seem to permit the substitution of a single sum payout for a joint and survivor annuity benefit option if certain conditions are met (ie equivalent value, only for those not in pay status). Any thoughts?

[QDROphile]

Not for amounts accrued under a money purchase pension plan, including restricted transfers.

[Guest Smokin]

The anti-cutback regulations seem to permit the substitution of a single sum payout for a joint and survivor annuity benefit option if certain conditions are met (ie equivalent value, only for those not in pay status). Any thoughts?

You're right which leads to the question, how does one differentiate a money purchase plan from a profit sharing plan (other than by designation in the plan document given that profit sharing plans no longer require profits

[QNPG]

The anti-cutback regulations seem to permit the substitution of a single sum payout for a joint and survivor annuity benefit option if certain conditions are met (ie equivalent value, only for those not in pay status). Any thoughts?

You're right which leads to the question, how does one differentiate a money purchase plan from a profit sharing plan (other than by designation in the plan document given that profit sharing plans no longer require profits

Not sure if this is the obvious answer, but money purchase pension plans have a required contribution and are subject to Code Section 412 (minimum funding requirements). Profit sharing plans are not.

[Tom Poje]

the other place to check in the document is the distribution section. money purchase plans have to have an option for J and S

[ESOP Guy]

One needs to look to see if the plan says it is a MP plan. A PS plan can have required contributions, and a J&S distribution section—even normal form. Ok, very rare to see either one, but the mere existence of those features does not make a plan a MP plan.

[QNPG]

One needs to look to see if the plan says it is a MP plan. A PS plan can have required contributions, and a J&S distribution section—even normal form. Ok, very rare to see either one, but the mere existence of those features does not make a plan a MP plan.

I would hope that the supporting trust document would make some reference to the minimum funding requirements of Code Section 412 at some point in the allocations and contributions section. I guess I was looking at it from that perspective.

A plan name doesn't necessarily designate a plan a certain type of plan either. I've seen many odd names which had no bearing on the type of plan and required contributions included.