Material Change to trigger Guideline reduction

[Adrienne Jordan]

What constitutes a “material change” with respect to partial withdrawals and their affect on guideline premium reductions? Is there an industry consensus or legal definition of “material change” in this regard?

[Chuck Ritzke]

I know of no exception to a reduction in benefits causing a reduction in the guidelines, even if caused by a withdrawal (although I could have missed it without more in-depth reading of LIME and the regs, etc).

Also FYI, I think that for purposes of the tax regs, “material change” definition is limited to increases in benefits., so you probably don’t want to use that term in this context.

 

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