arasalin
May 11 2007, 05:21 PM
Are there lump sum options where the EE and EER can prepay the HI tax on SERP distributions? If so, is the SERP required to notify the EE of the lump sum HI tax prepayment option?
Harry O
May 12 2007, 05:39 AM
Need way more information.
DB SERP?
DC SERP?
Benefit vested?
Benefit ascertainable?
etc. etc.
arasalin
May 18 2007, 05:01 PM
DB SERP, where the annual benefit amount is a percentage of the Participant's average base salary multiplied by years of service, payable over the life of the Participant, for a maximum of 25 years.
Benefit is vested.
The question is whether the plan needs to provide the Participant with a notice re: payment of HI tax as a lump sum in the first year in which she is in pay status, or whether the Plan has the option to elect the HI tax payment option without notifying the Participant.