Three Considerations Before Offering a Retiree Lump Sum (March 28, 2019)
You have probably heard by now that the IRS has reversed course and is allowing pension plans to offer lump sums to retirees in pay status. Under IRS Notice 2019-18, a lump sum offer would give current retirees the opportunity to switch from a monthly annuity to a single lump sum payment.
Many plan sponsors are contemplating whether to take advantage of this limited opportunity to offer lump sums to retirees. As you weigh the possibility, consider the three key issues outlined in our Newsletter.