PBGC publishes information booklet on QDROs

Article Abstract:

The US Pension Benefit Guaranty Corp. (PBGC) has issued the report 'Divorce Orders and PBGC' to identify the standards that qualified Domestic relations orders (QDROs) should meet for assignment of defined benefit plan benefits to be effective. The PBGC is guarantor and trustee for defined benefit plans that could not meet their obligations and were terminated. Divorcing spouses can assign anticipated employee benefits through the use of QDROs. Along with identifying domestic orders that the PBGC will accept, the booklet sets forth procedures for appealing PBGC decisions denying QDRO recognition.

Reports, Divorce settlements, United States. Pension Benefit Guaranty Corp.

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Suspension of benefits - still confusing after all these years

Article Abstract:

The suspension of benefits regulations for defined benefit plans, first enacted by the Department of Labor in 1981, are challenging for plan administrators both because of their complexity and because noncompliance can result in plan disqualification. The suspension of benefits rules are an exception to general nonforfeiture laws for defined benefit plans. The rules apply to employees working beyond retirement age and retirees that are reemployed after reaching retirement age. The regulations detail notification requirements, employment that suspends benefits and resumption of benefits rules.

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Interest rate assumption for crediting contributions to a cash balance plan sufficient to make benefits definitely determinable

Article Abstract:

PLR 9645031 provides some insight into the IRS' position on how actuarial assumptions may be decided upon without violating the requirement under IRC section 401(a)(25) that defined benefit plan benefits be definitely determinable. The ruling involved a government plan under which a state retirement board had the discretion to set the interest rates used. The rates could be changed for each plan year by amending the plan. The IRS found that individual employers had no discretionary control over rate setting, satisfying section 401(a)(25).

Interest rates

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