IRS reg 1.417(e)-1(b) states that a qualified joint and survivor annuity is an annuity that commences immediately. The same reg proceeds to state that thus, for example, you cannot offer a separated participant a choice between an immediate single sum payment at separation and a J&S that commences at normal retirement age (rather than immediately). (Of course, some here debate whether this portion of the reg is invalid ala BBS Associates.)
A qualified preretirement survivor annuity is defined by IRS reg 1.401(a)-20, Q&A 18 as an immediate annuity for the life of the surviving spouse. However, unlike for the QJSA, there is no "thus, for example," a plan cannot offer the spouse a choice between an immediate single sum and a deferred annuity.
Does this mean that following a participant's death, the spouse eligible for a QPSA can be provided with a choice between an immediate single sum or a deferred QPSA? Or not?
This has come up under a db plan where the plan sponsor want to offer a non-QPSA death benefit payable in single sum immediately upon the death of a vested participant.
However, the plan sponsor does not want to pay a spouse both a QPSA and the non-QPSA death benefit. This means that the QPSA would have to be reduced by the value of the non-QPSA death benefit, which is awkward and likely a single sum distribution of part of the QPSA in any case. Thus, the desired alternative is to provide the spouse with a choice between an immediate single sum distribution or a deferred QPSA. The single sum distribution would be the higher of the non-QPSA death benefit or the present value of the QPSA.