Discretionary Match

[Nassau]

I was determining eligibility for a discretionary match this week and came across an interesting note in our plan.

Generally if you are not employed on the last day of the year you do not qualify for the DM. However there are several waivers; death; disability; early or normal retirement. No problem there. Normal retirement age is defined as "date of participant's 65th birthday (not to exceed 65th).

Does this mean if the participant is 66 he does not receive the DM?

Reference a participant who retired 12/14/2012 and had his 66th birthday on October 22, 2012, (born in 1946). Does this mean he does not receive the DM since he has exceeded his 65th?

[david rigby]

...there are several waivers; death; disability; early or normal retirement.

Very likely, the use of "retirement" refers to an event, not an eligibility.

[BG5150]

I take it to mean someone who ceased to be employed after reaching NRA (or ERA if applicable)

There is a difference between "retirement" and getting to "retirement age."

[Bird]

It seems you quoted from the SPD and not the plan. The plan probably clarifies it (and includes late retirement).

[Draper55]

i think i have seen this written as the condition is waived in the plan year

in which......happens....

i am wondering what happens if the person then comes back and

works some in ensuing years....maybe then the exception should not have applied;

this would not be the case with death and probably not for disability either so maybe

it is best to only use death and diability as the exceptions and say the gold watch is worth

more than the match in the year of retirement....

[Guest Pats Fan in Packerland]

If you are using a tpa's Master / Prototype plan, then certain items in the adoption agreement are modifiable. In ours whenever a limit is expressed in the regulations / ERISA, quite often that limit is expressed (as an entry in between parentheses, like this).

A plan's retirement age can be pretty much anything, but cannot be greater than 65; so, that (cannot be 65) warning is to plan document specialists & the plan sponsor when setting up a new plan or bringing an existing plan over via installation; it doesn't mean someone who terminates at age 66 on February 12, 2013 won't receive the matching contribution becuase he didn't retire at age 65.