Is late retirement a protected benefit?

The Plan provides that if a participant works past age 65, no retirement benefit will be paid until actual retirement, subject to any required minimum distributions. Once the participant retires, distributions begin and the participant receives an actuarially increased benefit. The Plan is frozen. The Plan Sponsor wants to amend the Plan to force distribution at age 65. Would such an amendment be an impermissible cutback?

I think so.  However, the sponsor may be able to accomplish its goal by including payment at NRD (ie, while still employed) as an available option.  BTW, this may also be a useful method of encouraging "phased retirement".  Consult your pension actuary for more information.

Some other options in addition to David's suggestion of amending the plan for in-service distribution at NRD:

1. Client can implement Suspension of Benefit for active employees who didn't reach NRD yet, and stop actuarial increases for them if they continue to work past NRD (subject to RMD rules).
2. Client can implement Suspension of Benefit for active employees who are over NRD, and stop actuarial increases for them after suspension is provided (subject to RMD rules).
3. Client can amend the plan for RASD and provide two options: a) current retirement and NRD retirement.

Consult plan's ERISA counsel for more information.

Calavera, not everyone agrees that your #2 is allowable.  I'm not saying it is or is not, just that I've heard credible people say it is not.

The Supreme court Heinz decision would say neither 1 or 2 is permitted.

I agree with MargeM. 

SOBN cannot apply to benefits that have already accrued, as payment timing is a protected BRF.

#1 - After reading through some materials related to the Heinz case, I am still not sure if it is not allowable. All examples are pointed out to employees currently eligible for early subsidies or late retirement increases, and not to those who are not eligible yet.

#2 - I agree that you can not amend the plan, but maybe if you already have this provision in the plan you may start implementing it.

I let attorneys to decide on both cases.