Retroactive Annuity Starting Date

[Kudos26]

Hello, 

I have a question about DB plans that offer a Retroactive Annuity Starting Date. When calculating the make-up payment, is the basis for the amount of the payment the Normal Form of Payment under the plan or the actual form of payment chosen by the participant?  It seems like the actual form of payment chosen by the participant, but I wanted to see if anyone had any thoughts.  Thanks.

[Effen]

It should be specified in the plan document.  The plan document must contain specific provisions allowing the retroactive starting date and should contain clear direction on how to calculate it.  if it isn't in the document, you can't do it.

That said,  since they are electing a specific form of payment, that is starting at some prior date, I think the only choice is to use the form of payment they elected.   

Also, make sure the spousal consent also specifically consents to the retroactive nature of the elected payment.

[CuseFan]

The elected form, but yes, all should be in document.