Trump Treasury Backtracks On Lump-Sum Pension Rules Meant To Protect Retirees

Trump Treasury Backtracks On Lump-Sum Pension Rules Meant To Protect Retirees

The Treasury Department told off employers back in 2015: Lump-sum pension buyouts for retirees already in payout status are a no-no. In practice, employers stopped offering them, per Notice 2015-49, despite the fact that proposed and temporary rules never came out. Now, in a Trump-era twist, the Treasury Department has backtracked with Notice 2019-18, a retraction of intent to propose regulations on the topic: “Offering a Lump-Sum Payment Option to Retirees Currently Recieving Annuity Payments under a Defined Benefit Plan.”