removal of spousal consent when not required under K plan

We have a 401(k) that includes no pension source funds nor does it have any annuity distribution options.

The plan document in the past required spousal consent to take a loan or distribution.  I inquired about this when restating the document and was told the plan sponsor just liked the idea that the spouse would want to know when money was coming out.  This was pre-daily platform.  Now they are on a daily platform and they want things more automated and no longer want to require spousal consent.  I believe since this was something they administratively opted to include in the plan but was not required, it would be fine to remove this requirement.  I assume it is not be a protected benefit since it is not a required.

Would you agree?

Tom

Don't assume too quickly.  There may be a reason for the plan provision.  Or possibly, it was a valid reason but is no longer.  Good advice: make sure you consider all the alternatives before changing a plan provision.  Read Larry Starr's comment here, with special attention to the concept of "remarried" and "children of prior marriage":

I agree it can be removed. If the plan had annuity options, it could be done but would require some advance notice. 

I assume that you intend to modify the plan document and not just ignore the spousal notice or consent requirement.  

If you have actual knowledge that the Participant has been recently divorced or that a QDROis in the works, you would be advised not to make any loans or distributions until the rights of the prospective Alternate Payee have been resolved. 

DSG

On 7/6/2023 at 1:27 PM, Bird said:

I agree it can be removed. If the plan had annuity options, it could be done but would require some advance notice. 

Agree.  I think it's true because death benefits don't vest.  Anything beyond the QJSA can be taken away.

https://www.bloomberglaw.com/external/document/X34LHKL4000000/retirement-benefits-professional-perspective-spousal-consent-req