Excerpt: The minimum lump sum payable from a pension plan has increased dramatically due to the unusually low 30-year Treasury rates of the past few years. This has made pension plans that have lump sum provisions much more expensive than the plan sponsor ever intended. Proposals to increase the lump sum interest rate could reduce lump sums unless they provide a transition period. This paper discusses the reasons why a change is needed and provides information on possible transition rules.  MORE >>