Request a Proposal

Hybrid Pension Plans

For plan sponsors of defined benefit plans that use a lump-sum based benefit formula (cash balance and pension equity plans) and other plans that have formulas with an effect similar to a lump sum formula that do not comply with the market rate of return requirement, they may now amend the plan to change to an interest crediting rate permitted under previously issued hybrid plan regulations, without violation of the anti-cutback rules. This applies to plan amendments made on or after September 18, 2014 (or earlier date as elected by the plan) and ceases to apply for amendments made on or after the first day of the first plan year that begins on or after January 1, 2017.; November 13, 2015.