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IRS and Treasury say no more lump-sum offers

Outlet: 
MarketWatch
Date Published: 
Wednesday, August 5, 2015

The Internal Revenue Service and the Treasury have done a wonderful thing. They announced last month that they intend to amend regulations in order to prohibit companies from “de-risking” their defined benefit plans by offering a lump-sum option for retirees already receiving benefits. In other words, defined benefit plans will not be able to replace any annuity currently being paid with a lump sum or any other accelerated payment.

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