[17738]
July 1, 2004
TO: PENSION MEMBERS No. 39-04
PENSION OPERATIONS ADVISORY COMMITTEE No. 48-04
RE: TREASURY EXTENDS EFFECTIVE DATE OF RELATIVE VALUE REGULATIONS
As requested by the Institute, Treasury has released Announcement 2004-58 (attached),
delaying until February 1, 2006 the effective date of the final relative value regulations, which
require qualified joint and survivor annuity (“QJSA”) explanations relating to certain optional
forms of benefit.
Prior to the release of the announcement delaying the effective date, final regulations
under Code section 417(a)(3) regarding QJSA explanations were generally effective for
explanations provided with respect to annuity starting dates beginning on or after October 1,
2004. However, since QJSA explanations need to be provided to participants 30 to 90 days prior
to the benefit starting dates, it would have been necessary to revise QJSA explanations for
timely delivery to participants as early as July 1, 2004.
The new effective date generally will apply to QJSA explanations provided with respect
to annuity starting dates beginning on or after February 1, 2006. In the interim, plans that do
not comply with the final regulations will be required to comply with prior guidance regarding
QJSA explanations of relative values of optional forms of benefit.
The October 1, 2004 effective date will continue to apply to certain optional forms of
benefit (e.g., single sums, partial single sums in combination with annuities, or installment
payments) if the actuarial present value of that optional form is less than the actuarial present
value of the QJSA.
Lisa Robinson
Assistant Counsel
Attachment (in .pdf format)
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