Legal Update

Aug 22, 2005

IRS Now Allows Elimination of Optional Pension Forms

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One problem that plagues many pension plans is the accumulation of “protected” forms of benefit. These are often unusual annuity forms-typically inherited from other plans that have been merged as part of historical acquisitions-that participants almost never elect but that have to be kept in the plan because ERISA generally prohibits the elimination of any form of payment for benefits that have already accrued.

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