Final 411(d)(6) Regs Permit Elimination of QJSA Benefit Option?

[Guest SCUDDESLER]

Assume a pension plan satisfies the QJSA component of the

QJSA/QPSA rules by providing the following benefit forms:

(1) an annuity for the life of the participant with a survivor annuity for the life of his spouse which is 50% of the amount of the annuity payable during the joint lives of the participant and spouse (the "normal form of benefit");

(2) an annuity for the life of the participant with a survivor annuity for the life of his spouse which is 60% of the amount of the annuity payable during the joint lives of the participant and spouse;

(3) an annuity for the life of the participant with a survivor annuity for the life of his spouse which is 70% of the amount of the annuity payable during the joint lives of the participant and spouse; and

(4) a lump sum distribution which is actuarially equivalent to the normal form of benefit.

As I read the final regulations under 411(d)(6) which were

issued last week, the plan could be amended to eliminate,

for example, all benefit options except (1) and not violate

the Code's anticutback rule. Alternatively, the plan could be amended to eliminate (1), (2), and (4), without violating the anticutback rule. Is it true that any combination of optional benefit forms may now be eliminated so long as the plan retains one benefit form that satisfies the QJSA rule?