417 - QJSA and QPJSA

Question 1

Definition of QJSA

Answer 1

• between JnS 50 and JnS 100
• Beneficiary must be spouse
• Must be actuarially equivalent to SLA

Question 2

Definition of QPSA (DB Plan)

Answer 2

Must have JnS % >= QJSA (is it AE to QJSA?)

Treat participant who dies:

• Separated from service on death
• Survived to earliest retirement age
• Elected JnS, then died

Question 3

Definition of QPSA (DC Plan)

Answer 3

Annuity with at least 50% of the ptp’s vested account

Question 4

When can a plan deny a QJSA/QPSA?

Answer 4

PTP has not been married 1 year at:

a. Annuity Starting Date (QJSA)
b. Ptp’s Death (QPSA)

Question 5

Definition of QOSA

Answer 5

Qualified Optional Survivor Annuity

Basically after the 2008 plan year it added a second QJSA. If the QJSA is less than 75, then it adds a QJSA75. If QJSA >= 75, then it adds a QJSA50

Question 6

T/F a plan charge extra for providing a QPSA/QJSA?

What is default exam condition?

Answer 6

1. TRUE - Plan can charge extra for increased cost from offering QPSA/QJSA.
2. Default exam condition is that all optional forms are actuarial equivalent. (plan DOES charge for QPSA/QJSA)

Question 7

T/F Spousal consent is always necessary if you do not select the QPSA.

Answer 7

FALSE not needed if you select any other actuarially equivalent JnS

Question 8

How many times can you switch elections between QPSA and QOSA in the 180 day election period?

Answer 8

Unlimited.

Question 9

What changes if the QPSA/QJSA is fully subsidized? I.e. benefit under QJSA/QPSA = SLA.

Answer 9

1. You don’t have to provide the written explanations

2. Ptp cannot waive the benefit

Question 10

When can you waive QJSA coverage?

Answer 10

Within 180 days of of annuity starting date

Question 11

When does QPSA coverage begin?

Answer 11

Later of:
1. When you have been married for 1 year
2. When you are notified of coverage
3. When you become vested
Earlier of:
a. Term Date
b. 1st of year when you turn 35

Question 12

What is the minimum QPSA survivor %?

Answer 12

Must be at least as large as QJSA

Question 13

T/F If a participant waives the qualified joint and survivor annuity option with spousal consent, the participant may, without further spousal consent, change the optional form of payment elected

Answer 13

False - they would have to give consent that no further consent is needed

Question 14

T/F Spousal consent is not needed for a QOSA that is not actuarial equivalent to QJSA

Answer 14

FALSE
Both the QJSA and QOSA should be actuarially equivalent to SLA. If plan provides a subsidy for QJSA, but not QOSA then QJSA will not be AE to QOSA.

Question 15

T/F Spouse may give verbal consent

T/F Spouse may send an email giving consent

Answer 15

FALSE, FALSE
Spouse must
- consent in writing
- acknowledge effect of election
- have election witnessed by notary or plan representative
- Document must contain written explanation of QJSA/QPSA

Question 16

T/F a plan can apply the $5000 mandatory cash out provision to a QJSA/QPSA if before annuity start date.

Answer 16

TRUE - MUST be before annuity start date else you need consent of ptp and spouse

Question 17

Can a QPSA/QJSA be cash out to a Lump Sum?

Answer 17

Yes with consent of PTP and spouse. (if QPSA - then just spouse xD )

Question 18

T/F the QJSA must be the most valuable FOP for a married participant?

Answer 18

True

Question 19

Can a plan only offer a LS option?

Answer 19

No because you must offer a QJSA as well.