Treasury clarifies rules on partial lump-sum distribution of pensions

A National Law Review article summarizes some rule clarifications by the Department of Treasury regarding partial lump-sum distributions of pensions.

In September, the US Department of the Treasury issued final regulations that clarify the minimum present value requirements for defined benefit plans in order to simplify the rules associated with partial lump sum distributions. These new rules, which generally apply to distributions with annuity payments starting in plan years beginning on or after January 1, 2017, are intended to encourage plans to offer hybrid distribution options that include an annuity, to ensure a lifetime benefit stream.

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