Disability definition

[Benefits to all]

If I define disability in a DB plan as having the same meaning as the company's long-term disability plan (as in effect at the time of the event giving rise to disability) and subsequently the company changes the long-term disability definition (not subsequent to the injury, but subsequent to the effective date of the definition), is this a prohibited cutback under 411(d)(6)? The problem is that the current LTD definition is a pretty low standard to clear, and I could foresee them changing it in the future to raise the bar a bit. Is that a cutback?

At first thought, it would appear you are not cutting back anything that the participants are guaranteed already, as the definition is as it is in place at the event. But then I thought that could apply to anything. You cannot say "you are guaranteed whatever benefit we determine at the time." Thoughts?

[david rigby]

You may want to review the 411d6 reg yourself, but my recollection is that no 411d6 protection applies to any disability benefit.

[Benefits to all]

I should clarify. There is no disability benefit under the Plan. The determination of disability just affects vesting and accruals. That is what I am worried about. If I change the definition of "disability" for those determinations, am I cutting back a feature of the benefit offered under the Plan?

[Hojo]

Disability benefits themselves are not subject to 411(d)(6), but not sure in regards to impact on vesting and accruals......

[tymesup]

My recollection coincides with david rigby's above. You may also want to look at Notice 2007-14.