I am new to this area so I need a little assistance.
Is there a new ruling with respect to the impact of deferring a benefit? This is all of the information I was given, other than the fact that it was under PPA.
I have done some research and have not come up with anything - any assistance, with the appropriate cite, is appreciated.
Thanks.
Full Version: Deferring Benefit
"Deferring benefits" may mean different rules depending on your situation. Can you explain a little more?
Is this a DB plan? Are you looking at an option to take benefits now or at a later date?
Is someone working past normal retirement age?
Is someone eligible for retroactive benefit payments because they stopped work in the past?
Are you considering the disclosure requirements of optional forms of payment and their relative value?
Is this a DB plan? Are you looking at an option to take benefits now or at a later date?
Is someone working past normal retirement age?
Is someone eligible for retroactive benefit payments because they stopped work in the past?
Are you considering the disclosure requirements of optional forms of payment and their relative value?
QUOTE (SoCalActuary @ Jan 9 2007, 07:12 PM) 
"Deferring benefits" may mean different rules depending on your situation. Can you explain a little more?
Is this a DB plan? Are you looking at an option to take benefits now or at a later date?
Is someone working past normal retirement age?
Is someone eligible for retroactive benefit payments because they stopped work in the past?
Are you considering the disclosure requirements of optional forms of payment and their relative value?
Is this a DB plan? Are you looking at an option to take benefits now or at a later date?
Is someone working past normal retirement age?
Is someone eligible for retroactive benefit payments because they stopped work in the past?
Are you considering the disclosure requirements of optional forms of payment and their relative value?
Those are all great questions . . .
I am referring to a DB plan - I believe the question relates to disclosure requirements.
Maybe you are referring to the new requirements that the db election forms state the "consequences of failing to defer" your pension benefit. In other words, what bad things can happen if you take a lump sum now.
Ive been wondering what others are doing about this myself.
Ive been wondering what others are doing about this myself.
QUOTE
1102(b)(1) IN GENERAL. --
The Secretary of the Treasury shall modify the regulations under section 411(a)(11) of the Internal Revenue Code of 1986 and under section 205 of the Employee Retirement Income Security Act of 1974 to provide that the description of a participant's right, if any, to defer receipt of a distribution shall also describe the consequences of failing to defer such receipt.
1102(b)(2) EFFECTIVE DATE. --
1102(b)(2)(A) IN GENERAL. --
The modifications required by paragraph (1) shall apply to years beginning after December 31, 2006.
1102(b)(2)(B) REASONABLE NOTICE. --
A plan shall not be treated as failing to meet the requirements of section 411(a)(11) of such Code or section 205 of such Act with respect to any description of consequences described in paragraph (1) made within 90 days after the Secretary of the Treasury issues the modifications required by paragraph (1) if the plan administrator makes a reasonable attempt to comply with such requirements.
The Secretary of the Treasury shall modify the regulations under section 411(a)(11) of the Internal Revenue Code of 1986 and under section 205 of the Employee Retirement Income Security Act of 1974 to provide that the description of a participant's right, if any, to defer receipt of a distribution shall also describe the consequences of failing to defer such receipt.
1102(b)(2) EFFECTIVE DATE. --
1102(b)(2)(A) IN GENERAL. --
The modifications required by paragraph (1) shall apply to years beginning after December 31, 2006.
1102(b)(2)(B) REASONABLE NOTICE. --
A plan shall not be treated as failing to meet the requirements of section 411(a)(11) of such Code or section 205 of such Act with respect to any description of consequences described in paragraph (1) made within 90 days after the Secretary of the Treasury issues the modifications required by paragraph (1) if the plan administrator makes a reasonable attempt to comply with such requirements.
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