Required notice to Participant regarding NRA and age 70 1/2

[MMMBENE2000]

Is the Plan Sponsor of a Defined Benefit Plan required to notify participants when they've reached or surpassed Normal Retirement age (i.e. a letter reminding the Participant he/she is now eligible and should consider applying)? What about having reached/surpassed age 70 1/2? I'm looking for language regarding whether these notices are REQUIRED by any entity or if it is merely good practice. Thanks.

[Andy the Actuary]

You're talking about legally required and not what makes good plan administration practice.

At normal retirement age, no notice is required so long as plan provides the greater of the accrued benefit and actuarial equivalent of normal retirement benefit when actual retirement occurs. If only the accrued benefit, then a "suspension of accrued benefits" notice is required. The Plan language will dictate whether or not RMDs are applicable prior to the participant's actual retirement. If so, then the Plan must start them, which means if there are options, the Plan would need to provide the appropriate election forms and notices.

Suggestion for more in-depth is to refer to "The ERISA Outline Book", "The Pension Answer Book," or other explanations of applicable pension law.

[MMMBENE2000]

Right! I was wondering planning to make a few modifications to our procedures and wanted to know what was required and where we have leeway, but still within good administrative practices.

Thanks for the info - I appreciate your help!

(Hey...I know an Actuary named Andy from Indy...!)