Allowing Participants to Choose between Defined Benefit and Defined Contribution

[tsrl01]

We want to allow participants currently in a DB to elect whether to stay in the plan at the current multiplier or go to a DC plan. Those who elect the DC will have their DB benefit frozen and get an increase in their non elective contribution rate while the ones who stay in the DB do not receive the nonelective in the DC. Can we do this? Guidance?

Thank you!

[QDROphile]

You will need a heap of advice about what life will be like after implementation in order to decide if this is the best course to follow, and that advice will involve understanding of your circumstances. You may get encouragement or discouragement here, but you will not be able to make a good decision about proceeding from the comments. You probably already know that the most common pattern is to freeze everyone in the DB plan and total migration to the DC Plan. There are reasons for that.

[Tom Poje]

I guess you could always amend the DB plan to exclude anyone by name 'who wants out' so to speak.

of course such an arrangement you are talking about with some accruing in the db and others in the DC would have to be tested for nondiscrimination, and would also possibly fail minimum participation somewhere down the line (imagine if 60% decide to go DC, then only 40% benefit in the DB...)

[david rigby]

is this a qualified plan? governmental plan?