How will other pension rules be affected by phased retirement benefits?
There will be no restrictions on when, or how often, an employee’s accrued pension amount can be recalculated to take into account the employee’s additional pensionable service and increased annualized earnings (if any) during a period of simultaneous benefit accrual and pension payment. Employers will not be prevented from limiting participation to specific employees under the plan terms. The prohibition against the payment of bridging benefits on a stand-alone basis will not apply for qualifying employees. The prohibition on accruing additional benefits, while receiving pension payments, will continue to apply to designated plans as well as to persons who are connected with their employer.
