In-service Distribution

DB plan NRA is 62 & 5 YOP. The plan sponsor wants to amend to add an in-service distribution provision upon reaching NRA. My question is: Does the law allow the in-service distribution to be mandatory upon reaching 62 or NRA?

Plans can mandate commencement of benefits upon the attainment of NRA. However, if that's not already in the plan, so a participant has the ability to defer commencement until actual retirement or possibly his/her RBD, I'm not sure if you can add that now, it may be considered a cutback, especially if actuarial increases are provided post-NRA.

The default form of benefit in a DB plan is always QJSA. According to 1.417(e)-1(b)(1), a benefit can be distributed in the form of a QJSA once the participant reaches the later of age 62 or NRA without the consent of the participant or the spouse.

Any other form of distribution, such as a lump sum, would require consent.