Immediate Distributions - Cutback of benefits

[WesleyT]

I have a takeover plan that only permits distributions at normal retirement. They previously offered a one-time 30 day window in which the terminated participants at that time could receive a distribution of their account balance. Following the 30 day window, the plan reverted to distributions at normal retirement.

Despite the short period of time for which immediate distributions were offered, this seems like a 411(d)(6) issue and would be a cutback of benefits. And that would apply to all participants' account balances at that time, regardless of whether they were active or terminated at that time. Do you agree? Any arguments out there that would permit this one-time window?

[rcline46]

A specific window - whether for retirement, distributions or anything else, which was stated to be limited at the time presented, does not create a protected class of benefits. If done repeatedly it might create an expectation, but not if only done once.