post 65 accruals

[Guest Amy Erlbacher Anderson]

I have seen several places that a suspension of benefits notice is required for a plan that allows participants to continue to accrue benefits after normal retirement age. In my case, the employer continues to credit for years of service but does not actuarially increase the benefit.

The only reference I can find to this type of notice is Labor Reg 2530.203-3(B)(4). However, the regulation concerns suspension of benefits upon re-employment. Does this also apply to the employee who remains employed but does not take a benefit?

If yes, is there a model notice or any further guidance out there from the DOL or the IRS?

[Wessex]

You haven't gone far enough in the DOL regulation - - - see Section 2530.203-3©(1). (Of course, this is inconstent with the statute, but that's probably a dead horse.)

Sorry, I don't have a notice.

[david rigby]

Sorry I cannot provide cite, but my understanding is that notice is required (thru DOL regulation) unless the plan does one of two things:

1. Pay the benefit to employees upon attainment of NRD, or

2. Provide a benefit at the late retirement date that is the *greater* of the benefit determined using continued accruals, or the NRB actuarially increased to late retirement date.

The plan is not required by statute to provide this "greater of" benefit.

[This message has been edited by pax (edited 03-10-2000).]