Business Insurance will be back online in October. Please check back then to subscribe/register.

All existing subscriptions will be honored. Contact info@businessinsurance.com with any questions.

ARC: WHAT COMPANIES NEED TO KNOW ABOUT REDUCING THEIR PENSION PLAN RISKS

IRS rules on lump-sum pension benefit conversion

In its first guidance on the issue, the IRS in two private letter rulings, says giving retirees the ability to convert the monthly pension benefit they receive from their former employers into a lump-sum benefit does not violate federal pension law or regulations. In those rulings, the IRS said a lump-sum benefit option that would be available during a limited period of time is a “permitted benefit increase.” The rulings come as more employers are examining such an approach as a way to reduce the risks and costs associated with offering a defined benefit plan. Read the first ruling and the second ruling.

More from BI