As of July 9, 2015, sponsors of defined benefit pension fundswill be prohibited in most cases from offering retirees alreadyreceiving pension checks a lump-sum buyout.
Lump-sum buyouts had been permissible under aprovision of tax law that only allowed increases to benefitpayments.
But the Treasury and the IRS have determined that going forward,the only type of increases allowed will be those made to “ongoing”annuity payments, and not those that “accelerate” those payments,as lump-sum arrangements do.
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