Final regulations respecting partial annuity distribution options under defined benefit plans should specify that the addition of rules for bifurcated benefits does not void approaches for handling these benefits in previous periods.
The American Society of Pension Professionals and Actuaries and the ASPPA College of Pension Actuaries issued this recommendation in comments on the IRS’ and Treasury Department’s proposed modifications to minimum present value regulations for partial annuity distribution options under defined benefit plans. The proposed changes to Section 417(e) of the Internal Revenue Code were issued by the IRS and Treasury Dept. on February 3rd.
In a press statement dated May 2nd, ASPPA and ACOPA also recommended the following:
Multiple annuity starting dates—Final regulations should confirm that similar rules apply to the case of bifurcated benefits with different annuity starting dates.