Dennison v. Mony Life Retirement Income Security Plan for Employees

Dist. Ct. did not err in affirming defendant-pension plan’s issuance of lump sum pension benefits based on “segment” discount rate of 5.24 percent for its tax-qualified defined benefits pension plan, as well as 7.5 percent rate for its excess benefit plan. While plaintiffs argued that more appropriate discount rate for both plans was 3 percent as computed by Pension Benefit Guaranty Corp., instant rates used by defendant were permissible under Pension Protection Act. Moreover, plan allowed defendant to retroactively change discount rates, where, as here, plaintiffs chose lump sum distribution in preference to annuity.