The Basic tab allows users to specify Basic Information and Payment Form for the selected optional benefit.
- Option Name: space to provide the name of the option. This name should not include any spaces.
- Option Description: brief description of the option (50% Joint & Survivor for example).
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Benefit Availability: this space is used to indicate which individuals are eligible to receive the selected optional benefit. The following choices are available:
- Everyone (w exceptions): this is the default choice - all people are eligible for the optional benefit unless the benefit includes a contingent benefit payable to a beneficiary (J&S fraction of 0.5 for example) and no beneficiary is specified for the person.
- Single only: only people without a beneficiary or with a beneficiary that is not indicated as being a spouse (child, ex-spouse, etc.) are eligible for this optional benefit.
- Married only: only people that have a beneficiary indicated as a spouse are eligible for this benefit.
- Everyone (no exceptions): all people are eligible for the optional benefit (even if no spouse specified).
- Certain Period: for benefit options that include a certain period, space to provide that period (in years).
- 1.401(a)(9)-6 Maximum: check this box if the certain period for the selected option equals the maximum number of years allowed under 1.401(a)(9)-6 instead of a fixed number of years.
- Spouse and Participant must waive J+S Coverage: check this box if election of this option requires that spouse and participant must waive J&S coverage.
- Reduce optional benefit amounts by employee-paid annuity: when this box is checked, benefits will be reduced by the employee-paid portion of the benefit.
- Reduce optional benefit amounts by partial lump sum: when this box is checked, benefits will be reduced by the fractional allocation applied for a one-time initial lump sum payment. For plans where lump sum limitations apply due to low funding percentages, checking this box will reduce the benefit amounts by 50% for periods where the funding percentage is between 60% and 80% (defined in the document dates section of the Sponsor Document screen).
- Use maximum beneficiary fraction allowed under 1.401(a)(9)-6: check this box if the fraction of benefit payable to the beneficiary for an option equals the maximum fraction allowed under 1.401(a)(9)-6.
- Override 415(b) limit benefit adjustment: check this box if you would like to use an adjustment other than a conversion factor equal to the ratio of the normal form over the optional form. Keep in mind that selecting (equal to Life Annuity limit) results in a higher benefit limit unless the conversion factor is greater than 1.
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Payment Form: area to categorize the selected option into one of the following classifications:
- Single Normal Form: choose this if the selected benefit option is the single normal form under the plan.
- Married Normal Form: choose this if the selected benefit option is the married normal form under the plan.
- Small Benefit Cashout: choose this if the selected option is a small benefit cashout. If this choice is selected, you should also specify the Rollover and Limit for the cashout.
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Other: if this option is selected, you should check whether any of the following apply:
- PIA Level Income: check this box if the selected option is a Social Security Level Income type option. Then press the Options button to open the Optional Benefits - Level Income screen. Please note that if you check this box, any adjustment formula for initial benefit will be disregarded.
- Lump Sum (excluding small benefit): check this box if the selected option pays a Lump Sum (other than small benefit cashout) and define the Limit of the Lump Sum payments.
