Money Purchase Pension Plan

[Nassau]

Spousal consent is required when money is leaving the ABC Plan (MMP), but the plan's installment form did not have a section for spousal consent. Being new to the relationship I inquired with the client if there was a reason why there was not a spousal consent section on the plan's installment form.

As a result the client told me that they do have participants provide a spousal consent wen a termination is requested which is generally when an installment would be elected. The client has asked if it was necessary to have a spousal consent provided again if a change is being made to the setup of installments which is usually why a participant would be sent/complete an installment form. I thought that we would want to get spousal consent if any kind of change is being made to an installment payment setup, but I wanted to see if anyone had any thoughts with respect to this matter.

[Bird]

What is an installment form?

[Nassau]

What is an installment form?

An installment form is the form of distribution that the participant has signed and sent to the Company to request a termination distribution.

[Bird]

Maybe it's just me but I'm having a hard time understanding the time line of elections and consent. They're getting a consent but not getting it..when? And it seems you're using the word "form" to mean both a form of benefit and election form (i.e. piece of paper), so I'm confused, sorry.

[masteff]

if a change is being made to the setup of installments

I have no real experience w/ MPP so sorry if this is a stupid question: can participants in an MPP start installment payment for one dollar amount and then elect to change that dollar amount at a later point? Perhaps we need more info on the types of changes the participant is permitted to make?

I'm reading the scenario as: Participant is sent retirement packet which includes both spousal consent and benefit election. Later, participant wants to change the amount of the installment payments so the plan sends a form specifically for changing installment payment amount. And the question is: does the latter form require spousal consent. Correct?

Off the top of my head, reading 417(a)(2), I say: 1) it depends on what the consent says as to future changes and 2) I'd think a change in amount would not be a change in form of benefit so a new consent isn't absolutely required. Of course a new consent is always a nice "CYA".