Election of Lump Sum after AFTAP increases

[Pension RC]

I have a participant who would like to receive a lump sum distribution, but the plan's AFTAP is below 80% (it's also below 60%). If, after the participant begin receiving an annuity, the AFTAP increases, can she elect to receive the remainder as a lump sum?

Thanks!

[Andy the Actuary]

What does the Plan document provide?

[Hojo]

There are two things here.

1) As, Andy mentioned, the plan can provide that upon the date the limitation ceases to apply to the plan, the participant can receive the reamining portion of their benefit in the original (restricted) form elected, so you need to verify what the plan says; and

2) The participant must elect a lump sum, have it restricted and choose another form of payment in the meantime.

The actual election of a lump sum is important here.