50. Optional forms of benefit must be stated in the plan

Statement of Requirement: Code §§ 401(a)(4), 411(d)(6); Reg. §§ 1.401(a)(4)- 4, 1.411(d)-4; Notice 97-75, 1997-2 C.B. 337; Rev. Proc. 2023-37, 2023-51 I.R.B. 1491, sec. 9.03(5)

Document Provision: _____

Sample Plan Language:

The optional forms of benefit provided by this plan are as follows:

(Note to reviewer: The availability of each optional form of benefit must not be subject to employer discretion.

In addition, each optional form of benefit provided under a standardized plan (other than any that has been prospectively eliminated) must be currently available to all employees benefiting under the plan. This is the case regardless of whether a particular form of benefit is the actuarial equivalent of any other optional form of benefit under the plan.

Code § 411(d)(6) prevents a plan from being amended to eliminate or restrict optional forms of benefits and any other "§ 411(d)(6) protected benefits" with respect to benefits attributable to service before the amendment except as expressly provided under Reg. § 1.411(d)-4. See also LRM #60.

Plans subject to the funding standards of § 412 (i.e., money purchase pension plans, including target benefit plans) are required to offer joint and survivor annuities. See LRM #42.).