Eris@rab
Sep 18 2008, 11:12 AM
are COLA's allowed to be cutback?
what about if there is an unreduced pension at age 62 with 30 years of service -- can we eliminate that if we have an unreduced pension at age 55 with 10 years of service?
david rigby
Sep 18 2008, 12:27 PM
The IRS considers a COLA to be part of the accrued benefit. For example, see GrayBook Q&A 2006-32 and 96-39.
BTW, so does the PBGC. See BlueBook Q&A 98-2.
Also, see recent court case:
Gary Williams v. Rohm and Haas Pension Plan
Seventh Circuit, decided 8/14/2007
Case. No. 06-2555