Benefits Perspectives: Uniting defined benefit plan documents and administration in perfect harmony

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By Dominick Pizzano | 23 February 2016
Tax-qualified plans must not only satisfy legal requirements but also remain true to the terms of the plan document itself. Flexibility can make defined benefit (DB) administration much smoother, but it does the plan sponsor no good if the plan document fails to incorporate the preferred operational procedures. This article reviews a few common provisions found in DB plans that produce frustration for administrators and create scenarios where the plan no longer operates in accordance with the document. This article also offers suggestions as to how plan sponsors can keep their plan documents in tempo with their administration as well as the IRS rules.