Called in to review a case where a plan is filing a Standard Termination with the PBGC. There exists one individual who retired over 10 years ago and who elected 10 Year C&C Annuity (this is a small plan that offered lump sum option - uncommon for someone to elect an annuity form to say the least). Retired participant has been receiving monthly payments since then.
Another firm is doing the plan termination. In the course of termination, they sent distribution packages out to all participants, including the retired participant, showing a lump sum optional form of payment.
My thoughts are that the participant has already made her election of form of payment and that Plan must purchase an annuity contract providing monthly payment for life (10cc guaranty has long expired). I don't see why lump sum option would be available to a retiree at termination (already turned it down at retirement). In addition, if I recall past readings, that if she somehow was able to elect a lump sum, that the lump sum would be ineligible for rollover as she has been receiving periodic distributions, so that amount would be currently taxable.
Any comments would be appreciated (this is a rank and file employee by the way, not the owner's mother or any such nonsense).