Income Distribution Requirement

Income Distribution Requirement (IDR) is a regulation that mandates pension plans to pay out a minimum amount annually to retired members or beneficiaries. It ensures that retirees receive regular income from the pension fund, based on factors like their age, life expectancy, and the plan's rules. This requirement helps maintain a steady stream of income during retirement, reducing the risk of running out of funds and providing financial stability for retirees. It’s a safeguard designed to balance the needs of pensioners with the financial health of the pension plan.