I have a multiemployer situation; benefits were retroactively enhanced & a few participants went over the involuntary threshold upon re-calc. ; they've already been paid lump sums based on the former benefit level; does anyone know what the recommended or even legal way of handling this is ??

1. Is it possible the involuntary threshhold has also changed? (3500 to 5000?) If so, would this help?

2. If no help from (1) above, you probably have to consider this an administrative issue. The first thing to consider is whether the increase is even available as a lump sum under the terms of the plan. To err on the side of caution, you should probably look at the total amount. If you decide it is available, then the J&S signoff is the next issue. Again, to err on the side of caution, you could assume the signoff is required if the total is more than the involuntary limit (presumably 5000).

Ex. First distribution was 4600, increase is 500, then the spouse signoff would be required in order to pay the 500 in a lump sum.

I'm not sure I understand the problem. I assume its the DB plan?

What do you mean by "a few participants went over the involuntary threshold upon recalc"?

Are you saying that they exceeded the 415 limit?

Keith - Pax described the actual situation ; threshold is $5,000, originally got $4,600, retro adjustment is $500; participant wants $500 in cash now, a year later, & plan allows; I just needed to know how the paper flow would work to make it happen; Pax's answer sounds good, i.e. J&S sign-off.

Sound good to you Keith ??

I think that you could argue that if the amendment increasing benefits was adopted after the distribution had already been maed, then the value of the benefit was never over $5,000 and automatically cashing out the remaining $500 would be acceptable.

But I also think that getting spousal consent is the safe course, and the one that I'd pursue.

RCK