The rule “affects large employers with defined benefit pension plans that want to let older employees start collecting pension benefits while working past the normal retirement age.” The normal retirement age that was agreed upon by the IRS is 62. Interestingly employers can set the retirement age at “the later of age 62 or the fifth anniversary of plan participation as the normal retirement age.”
Considering that there are so fewer companies with defined benefit plans this new ruling won’t have a bearing on the majority of workers. In the next five years even less employers will be offering defined benefit plans, leaving the retirement planning to the employees.
