Late RMDs and Failure to Elect Form of Benefit

[AAS2]

A DB participant terminates employment before RBD and dies at least 15 years before first RMD is due.  Surviving spouse does not answer correspondence for years and is not found until well after RMD date, more or less ten years (facts are a little murky as to how often plan administrator reached out to surviving spouse - spouse has been living both in and out of US for years, but there have been numerous attempts - although first one may have been several years after first RMD was due).  Surviving spouse never made election regarding form of benefit.

1) I believe surviving spouse should receive first payment that represents actuarial equivalent of missing RMDs.  Anyone disagree?

2) Q&A 4 of CFR 1.401(a)(9) says that when participant is deceased, and a spouse fails to consent to a distribution, the plan may distribute in the form of a QPSA and 411(a)(11) and 417(e) will be deemed satisfied if plan has made reasonable efforts to obtain consent and the distribution otherwise meets the requirements of 417.  Is there any reason that spouse should be given opportunity to choose another form of benefit? It may be that plan administrator's first attempt to reach spouse was late, but there were many attempts afterward.  Spouse's son has responded to plan administrator's queries from time to time so plan administrator knows that documents went to right house.

Thank you

 

[CuseFan]

The annuity starting date was the RBD, and since you are past that date I don't see a basis for allowing the spouse to make an election. I think proper course of action is to commence the survivor annuity retro to the RBD and make a lump sum catch up payment with interest to correct for the missed RMDs.