QJSA Explanation to Participants

[Fielding Mellish]

Defined contribution plan subject to spousal consent. When the Plan sends out the required QJSA notice, is the Plan required to give specifics on the benefit amount for optional forms of benefit?

For example, the Plan offers a Qualified Joint and 50% Survivor Annuity, a Qualified Life and 75% Survivor Annuity, and a Life Annuity. They are all actuarially equivalent.

Pursuant to 26 CFR 1.417(a)(3)-1, it seems that the Plan is required, in its notice to a participant, the specific benefit amounts available under each benefit option.

Is that your reading, too? Thank you.

[QDROphile]

Not necesarily the specifiec benefit amounts for that particpant, but the options must be illustrated with representative numbers.

[John Feldt ERPA CPC QPA]

So they can make an informed election.

[Fielding Mellish]

Well, the problem with giving even representative numbers is that you have to come up with a calculation.

[My 2 cents]

Well, the problem with giving even representative numbers is that you have to come up with a calculation.

If the plan is subject to the QJSA rules, you had better be ready, willing and able to come up with those calculations!!!!!

Remember, their informed decision does not have to be "never mind, we'll just take the lump sum".

[Fielding Mellish]

We ended up figuring out a workaround because of calculations we have to do for a related defined benefit plan. Thanks all for your responses.