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Posted

26 CFR 1.417(a)(3)-1 lays out the rules for explaining a QJSA. Does anyone have a sample explanation they use for a defined contribution plan?

Is it enough to just get a sample quote off an insurance company and then tell the Participant to call the Fund Office for something more precise?

For reference, the differing benefits are all actuarially equivalent.

It seems like such an amazing amount of information to give to a Participant that it loses all meaning.

Thanks.

You cannot bash in the head of an American citizen without written permission from the State Department.

Posted

It seems like such an amazing amount of information to give to a Participant that it loses all meaning.

Thanks.

Welcome to ERISA.

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.

Posted

It seems like such an amazing amount of information to give to a Participant that it loses all meaning.

As if any thought was given to how much information people are able to conveniently handle at one time!

We should consider ourselves lucky that we don't have to give the QJSA explanation in six languages, like the instructions that come with new toasters!

Always check with your actuary first!

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