Beth N
Aug 17 1999, 04:07 PM
Is it permissible for a DB plan to allow retired ees, in pay status, to return to work on a part-time basis and continue to draw on their pension? Are there any restrictions on the age of the re-hired ees? What about the general rule (which I've often seen stated but never seen a citation) that DB plans may not allow in-service withdrawals?
Lorraine Dorsa
Aug 20 1999, 09:59 AM
"In-service" distributions are permitted in profit sharing plans, but not pension plans.
Defined benefit plans may permit distribution of benefits at NRD so this may accomplish what you are trying to do.
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Gary
Aug 20 1999, 06:33 PM
It would appear to be fine if the person was over the normal retirement age. The fact that the person is working only part-time should also work in favor of continuing to receivie the pension. However I would certainly look in the plan document to see what is said about in service annuities and issues related to part-time status.
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