Here is the scenario --

Multiemployer DB plan has provision for retroactive annuity payment to lost participants upon commencement of distributions after NRD. Want to amend the plan to instead provide for actuarially adjusted benefit to compensate for missed payment(s). Would the removal of the retroactive annuity option be a protected benefit violation?

If you read the preambles to the proposed and final regulations concerning retroactive annuity starting dates, they imply that it is a protected benefit. However, they also stated they would address how to change it in the 411(d)(6) relief regulations (came out proposed last month), but really didn't do a good job of it.

Does anyone have any additional thoughts on this? A multiemployer plan we work on was amended back in 2005 to eliminate the RASD and to apply actuarial increases if applicable. The question has now come up as to whether this was a violation of 411(d)(6). We do not think so but would like to have some cite that we can hang our hats on to to back up our position.

Was the RASD formally in the plan document or was it an administrative policy?

It was in the plan document. It was then amended to have only actuarial adjustments apply to annuities commencing after a certain date.