Actuarial increases for working beyond age 65, where there is a prior

[Gary]

Employee A works past age 65, but continues receiving accruals. At age 68, her company is bought and her old company pension is frozen. The old and new company never provided a suspension of benefits notice. Does anyone have any thoughts as to whether this employee should be getting an actuarial increase to her old plan frozen benefit for working beyond age 65 and not receiving a Suspension Notice?

[richard]

If no Suspension of Benefits notice is provided, then each year the employee receives the greater of the actuarial increase of his beginning of year accrued benefit or the "regular" benefit accrual in the year. This calculation is done each year starting at age 65.

So, between ages 65 and 68, merely receiving the accruals under the "regular formula" might not be enough (particularly true for long service employees, employees not receiving large pay increases, or for nonpay related plans).

After age 68, the "regular accrual" is zero, so the actuarial increase must be provided.

(All of this assumes your employee is working a minimum of 40hours per month, I think.)