Jump to content

Definitely Determinable Benefit Requirement and Use of Surplus

Guest dolstein

By Guest dolstein
in Defined Benefit Plans, Including Cash Balance

 Share

Recommended Posts

Guest dolstein

Guest dolstein

Posted
Posted

Would a provision in a plan document requiring that, in the event the plan is terminated, any surplus assets remaining in the plan be used to increase benefits payable to plan participants and specifying the method for allocating the assets violate the requirement that benefits be "definitely determinable"?

david rigby

david rigby

Posted
Posted

IMHO, no. It's common.

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

Effen

Effen

Posted
Posted

Agree, does not cause a problem with "definitely determinable", however, it should be treated as a plan amendment and the allocation needs to comply with the applicable non-discrimination rules.

The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice.

Hojo

Hojo

Posted
Posted

Definitely no. The benefits are still determinable based on a set formula no matter if there are excess assets or not.

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share
Go to topic listing
×
×
  • Create New...

Important Information

Terms of Use

  I accept