Current through Register Vol. 50, No. 3, March 20, 2024
F.
Definitions
Annual Benefit - a benefit that is payable
annually in the form of a straight life annuity. Except as provided below,
where a benefit is payable in a form other than a straight life annuity, the
benefit shall be adjusted to an actuarially equivalent straight life annuity
that begins at the same time as such other form of benefit and is payable on
the first day of each month, before applying the limitations of this article.
For a member who has or will have distributions commencing at more than one
annuity starting date, the annual benefit shall be determined
as of each such annuity starting date (and shall satisfy the limitations of
this Chapter as of each such date), actuarially adjusting for past and future
distributions of benefits commencing at the other annuity starting dates. For
this purpose, the determination of whether a new starting date has occurred
shall be made without regard to section 1. 401(a)-20, Q and A 10(d), and with
regard to section 1. 415(b)-1(b)(1)(iii)(B) and (C) of the income tax
regulations.
a. No actuarial
adjustment to the benefit shall be made for:
i. survivor benefits payable to a surviving
spouse under a qualified joint and survivor annuity to the extent such benefits
would not be payable if the member's benefit were paid in another
form;
ii. benefits that are not
directly related to retirement benefits (such as a disability benefit,
preretirement incidental death benefits, and postretirement medical benefits);
or
iii. the inclusion in the form of
benefit of an automatic benefit increase feature, provided the form of benefit
is not subject to section 417(e)(3) of the Internal Revenue
Code and would otherwise satisfy the limitations of this Chapter, and
the plan provides that the amount payable under the form of benefit in any
limitation year shall not exceed the limits of this Chapter applicable at the
annuity starting date, as increased in subsequent years pursuant to section
415(d) For this purpose, an automatic benefit increase feature is included in a
form of benefit if the form of benefit provides for automatic, periodic
increases to the benefits paid in that form. The determination of the annual
benefit shall take into account Social Security supplements described in
section 411(a)(9) of the Internal Revenue Code and benefits
transferred from another defined benefit plan, other than transfers of
distributable benefits pursuant section 1. 411(d)-4, Q and A-3(c), of the
income tax regulations, but shall disregard benefits attributable to employee
contributions or rollover contributions. Effective for distributions in plan
years beginning after December 31, 2003, the determination of actuarial
equivalence of forms of benefit other than a straight life annuity shall be
made in accordance with §101. F.1.b or 101.F.1.c.
b. Benefit Forms Not Subject to Section
417(e)(3)
i. The straight life annuity that is
actuarially equivalent to the member's form of benefit shall be determined
under this Subparagraph F.1.b, if the form of the member's benefit is either:
(a). a non-decreasing annuity (other than a
straight life annuity) payable for a period of not less than the life of the
member (or, in the case of a qualified pre-retirement survivor annuity, the
life of the surviving spouse); or
(b). an annuity that decreases during the
life of the member merely because of:
(i). the
death of the survivor annuitant (but only if the reduction is not below 50
percent of the benefit payable before the death of the survivor annuitant);
or
(ii). the cessation or reduction
of Social Security supplements or qualified disability payments (as defined in
section 401(a)(11)).
ii. Limitation years beginning before July 1,
2007. For limitation years beginning before July 1, 2007, the actuarially
equivalent straight life annuity is equal to the annual amount of the straight
life annuity commencing at the same annuity starting date that has the same
actuarial present value as the member's form of benefit computed using
whichever of the following produces the greater annual amount:
(a). the interest rate specified in La.
R.S.
11:2225(D)(5) and the
mortality table (or other tabular factor) specified in La.
R.S.
11:2225(D)(5) for adjusting
benefits in the same form; and
(b).
a 5 percent interest rate assumption and the applicable mortality table for
that annuity starting date.
iii. Limitation Years beginning on or after
July 1, 2007. For limitation years beginning on or after July 1, 2007, the
actuarially equivalent straight life annuity is equal to the greater of:
(a). the annual amount of the straight life
annuity (if any) payable to the member under the plan commencing at the same
annuity starting date as the member's form of benefit; and
(b). the annual amount of the straight life
annuity commencing at the same annuity starting date that has the same
actuarial present value as the member's form of benefit, computed using a 5
percent interest rate assumption and the applicable mortality table for that
annuity starting date.
c. Benefit Forms Subject to Section 417(e)(3)
The straight life annuity that is actuarially equivalent to the member's form
of benefit shall be determined under this Paragraph if the form of the member's
benefit is other than a benefit form described in §101. F.1.b. In this case,
the actuarially equivalent straight life annuity shall be determined as
follows.
i. Annuity Starting Date in Plan
Years Beginning After 2005. If the annuity starting date of the member's form
of benefit is in a plan year beginning after 2005, the actuarially equivalent
straight life annuity is equal to the greatest of:
(a). the annual amount of the straight life
annuity commencing at the same annuity starting date that has the same
actuarial present value as the member's form of computed using the interest
rate specified in La.
R.S.
11:2225(D)(5) and the
mortality table (or other tabular factor) specified in La.
R.S.
11:2225(D)(5) for adjusting
benefits in the same form; and
(b).
the annual amount of the straight life annuity commencing at the same annuity
starting date that has the same actuarial present value as the member's form of
benefit, computed using a 5.5 percent interest rate assumption and the
applicable mortality table; and
(c).
the annual amount of the straight life annuity commencing at the same annuity
starting date that has the same actuarial present value as the member's form of
benefit, computed using the applicable interest rate and the applicable
mortality table, divided by 1.05.
ii. Annuity Starting Date in Plan Years
Beginning in 2004 or 2005. If the annuity starting date of the member's form of
benefit is in a plan year beginning in 2004 or 2005, the actuarially equivalent
straight life annuity is equal to the annual amount of the straight life
annuity commencing at the same annuity starting date that has the same
actuarial present value as the member's form of benefit, computed using
whichever of the following produces the greater annual amount:
(a). the interest rate specified in La.
R.S.
11:2225(D)(5) and the
mortality table (or other tabular factor) specified in La.
R.S.
11:2225(D)(5) for adjusting
benefits in the same form; and
(b).
a 5.5 percent interest rate assumption and the applicable mortality table. If
the annuity starting date of the member's benefit is on or after the first day
of the first plan year beginning in 2004 and before December 31, 2004, the
application of this §101. F.1.c shall not cause the amount payable under the
member's form of benefit to be less than the benefit calculated under the plan,
taking into account the limitations of this Chapter, except that the
actuarially equivalent straight life annuity is equal to the annual amount of
the straight life annuity commencing at the same annuity starting date that has
the same actuarial present value as the member's form of benefit, computed
using whichever of the following produces the greatest annual amount:
(i). the interest rate specified in La.
R.S.
11:2225(D)(5) and the
mortality table (or other tabular factor) specified in La.
R.S.
11:2225(D)(5) for adjusting
benefits in the same form;
(ii). the
applicable interest rate and the applicable mortality table; and
(iii). the applicable interest rate (as in
effect on the last day of the last plan year beginning before January 1, 2004,
under provisions of the plan then adopted and in effect) and the applicable
mortality table.
Applicable Interest Rate - the rate of
interest on 30-year treasury securities (or any subsequent rate used under
section 417(e) of the Internal Revenue Code) as specified by
the Internal Revenue Service for the lookback month. The lookback month
applicable to the stability period is the second calendar month preceding the
first day of the stability period. The stability period is the plan year that
contains the annuity starting date for the distribution and for which the
applicable interest rate remains constant.
Applicable Mortality Table - the
applicable mortality table within the meaning of section
417(e)(3)(B) of the Internal Revenue Code.
415 Safe-Harbor Compensation -
a.
Compensation is defined
as wages, salaries, and fees for professional services and other amounts
received (without regard to whether or not an amount is paid in cash) for
personal services actually rendered in the course of employment with the
employer maintaining the plan to the extent that the amounts are includible in
gross income (including, but not limited to, commissions paid salespersons,
compensation for services on the basis of a percentage of
profits, commissions on insurance premiums, tips, bonuses, fringe benefits, and
reimbursements, or other expense allowances under a nonaccountable plan (as
described in section 1. 62-2(c) of the income tax regulations), and excluding
the following.
i. Employer contributions
(other than elective contributions described in section 402(e)(3), section
408(k)(6), section 408(p)(2)(A)(i), or section 457(b)) to a plan of deferred
compensation (including a simplified employee pension
described in section 408(k) or a simple retirement account described in section
408(p), and whether or not qualified) to the extent such contributions are not
includible in the member's gross income for the taxable year in which
contributed, and any distributions (whether or not includible in gross income
when distributed) from a plan of deferred compensation
(whether or not qualified).
ii.
Amounts realized from the exercise of a nonstatutory stock option (that is, an
option other than a statutory stock option as defined in section 1. 421-1(b) of
the income tax regulations), or when restricted stock (or property) held by the
member either becomes freely transferable or is no longer subject to a
substantial risk of forfeiture.
iii.
Amounts realized from the sale, exchange or other disposition of stock acquired
under a statutory stock option.
iv.
Other amounts that receive special tax benefits, such as premiums for
group-term life insurance (but only to the extent that the premiums are not
includible in the gross income of the member and are not salary reduction
amounts that are described in section 125).
v. Other items of remuneration that are
similar to any of the items listed in Clauses i-iv above.
b. For any self-employed individual,
compensation shall mean earned income.
c. Except as provided herein, for limitation
years beginning after December 31, 1991, compensation for a
limitation year is the compensation actually paid or made
available during such limitation year.
d. For limitation years beginning on or after
July 1, 2007,
compensation for a limitation year shall also
include
compensation paid by the later of 2 1/2 months after
an member's severance from employment with the employer maintaining the plan or
the end of the limitation year that includes the date of the member's severance
from employment with the employer maintaining the plan, if:
i. the payment is regular
compensation for services during the member's regular working
hours, or compensation for services outside the employee's regular working
hours (such as overtime or shift differential), commissions, bonuses, or other
similar payments, and, absent a severance from employment, the payments would
have been paid to the member while the member continued in employment with the
employer;
ii. the payment is for
unused accrued bona fide sick, vacation or other leave that the member would
have been able to use if employment had continued; or
iii. the payment is received by the member
pursuant to a nonqualified unfunded deferred compensation plan
and would have been paid at the same time if employment had continued, but only
to the extent includible in gross income.
e. Any payments not described above shall not
be considered compensation if paid after severance from
employment, even if they are paid by the later of 2 1/2 months after the date
of severance from employment or the end of the limitation year that includes
the date of severance from employment. Back pay, within the meaning of section
1. 415(c)-2(g)(8), shall be treated as compensation for the
limitation year to which the back pay relates to the extent the back pay
represents wages and compensation that would otherwise be
included under this definition.
f.
For limitation years beginning after December 31, 1997, compensation paid or
made available during such limitation year shall include amounts that would
otherwise be included in compensation but for an election
under sections 125(a), 402(e)(3), 402(h)(1)(B), 402(k), or 457(b).
g. For limitation years beginning after
December 31, 2000, compensation shall also include any
elective amounts that are not includible in the gross income of the member by
reason of section 132(f)(4)
Defined Benefit Compensation
Limitation - 100 percent of a member's high
three-year average compensation, payable in the form of a straight life
annuity. In the case of a member who is rehired after a severance from
employment, the defined benefit compensation limitation is the
greater of 100 percent of the member's high three-year average compensation, as
determined prior to the severance from employment or 100 percent of the
member's high three-year average compensation, as determined after the
severance from employment under §101. G.
Defined Benefit Dollar Limitation -
effective for limitation years ending after December 31, 2001, the
defined benefit dollar limitation is $160,000, automatically
adjusted under section 415(d) of the Internal Revenue Code,
effective January 1 of each year, as published in the Internal Revenue
Bulletin, and payable in the form of a straight life annuity. The new
limitation shall apply to limitation years ending with or within the calendar
year of the date of the adjustment, but a member's benefits shall not reflect
the adjusted limit prior to January 1 of that calendar year.
Employer - for purposes of this Chapter,
employer shall mean the employer that adopts
this plan, and all members of a controlled group of corporations, as defined in
section 414(b) of the Internal Revenue Code, as modified by
section 415(h), all commonly controlled trades or businesses (as defined in
section 414(c), as modified, except in the case of a brother-sister group of
trades or businesses under common control, by section 415(h)), or affiliated
service groups (as defined in section 414(m)) of which the adopting
employer is a part, and any other entity required to be
aggregated with the employer pursuant to section 414(o) of the Internal
Revenue Code.
Formerly Affiliated Plan of the Employer - a
plan that, immediately prior to the cessation of affiliation, was actually
maintained by the employer and, immediately after the cessation of affiliation
is not actually maintained by the employer. For this purpose, cessation
of affiliation means the event that causes an entity to no longer be
considered the employer, such as the sale of a member controlled group of
corporations, as defined in section 414(b) of the Internal Revenue
Code, as modified by section 415(h), to an unrelated corporation, or
that causes a plan to not actually be maintained by the employer, such as
transfer of plan sponsorship outside a controlled group.
High Three-Year Average Compensation - the
average compensation for the three consecutive years of service (or, if the
member has less than three consecutive years of service, the member's longest
consecutive period of service, including fractions of years, but not less than
one year) with the employer that produces the highest average. In the case of a
member who is rehired by the employer after a severance from employment, the
member's high three-year average compensation shall be
calculated by excluding all years for which the member performs no services for
and receives no compensation from the employer (the break period) and by
treating the years immediately preceding and following the break period as
consecutive. A member's compensation for a year of service shall not include
compensation in excess of the limitation under section 401(a)(17) of the
Internal Revenue Code that is in effect for the calendar year
in which such year of service begins.
Limitation Year - a fiscal year, from July 1
to June 31. All qualified plans maintained by the employer must use the same
limitation year. If the limitation year is
amended to a different 12-consecutive month period, the new limitation
year must begin on a date within the limitation year
in which the amendment is made.
Maximum Permissible Benefit - the lesser of
the defined benefit dollar limitation or the defined benefit compensation
limitation (both adjusted where required, as provided below).
a. Adjustment for Less than 10 Years of
Participation or Service. If the member has less than 10 years of participation
in the plan, the defined benefit dollar limitation shall be multiplied by a
fraction:
i. the numerator of which is the
number of years (or part thereof, but not less than one year) of participation
in the plan; and
ii. the denominator
of which is 10. In the case of a member who has less than 10 years of service
with the employer, the defined benefit compensation limitation shall be
multiplied by a fraction:
(a). the numerator
of which is the number of years (or part thereof, but not less than one year)
of Service with the employer; and
(b). the denominator of which is
10.
b.
Adjustment of Defined Benefit Dollar Limitation for Benefit Commencement before
Age 62 or after Age 65. Effective for benefits commencing in limitation years
ending after December 31, 2001, the defined benefit dollar limitation shall be
adjusted if the annuity starting date of the member's benefit is before age 62
or after age 65. If the annuity starting date is before age 62, the defined
benefit dollar limitation shall be adjusted under Clause b.i of this Paragraph,
as modified by Clause b.iii of this Paragraph. If the annuity starting date is
after age 65, the defined benefit dollar limitation shall be adjusted under
Clause b.ii of this Paragraph, as modified by Clause b.iii of this Paragraph.
i. Adjustment of Defined Benefit Dollar
Limitation for Benefit Commencement before Age 62
(a). Limitation Years Beginning before July
1, 2007. If the annuity starting date for the member's benefit is prior to age
62 and occurs in a limitation year beginning before July 1, 2007, the defined
benefit dollar limitation for the member's annuity starting date is the annual
amount of a benefit payable in the form of a straight life annuity commencing
at the member's annuity starting date that is the actuarial equivalent of the
defined benefit dollar limitation (adjusted under §101. F.11.a. for years of
participation less than 10, if required) with actuarial equivalence computed
using whichever of the following produces the smaller annual amount:
(i). the interest rate and the mortality
table (or other tabular factor) specified in the plan for adjusting benefits in
the same form; or
(ii). a 5 percent
interest rate assumption and the applicable mortality
table.
(b). Limitation
Years Beginning on or After July 1, 2007
(i).
Plan Does Not Have Immediately Commencing Straight Life Annuity Payable at Both
Age 62 and the Age of Benefit Commencement. If the annuity starting date for
the member's benefit is prior to age 62 and occurs in a limitation year
beginning on or after July 1, 2007, and the plan does not have an immediately
commencing straight life annuity payable at both age 62 and the age of benefit
commencement, the defined benefit dollar limitation for the member's annuity
starting date is the annual amount of a benefit payable in the form of a
straight life annuity commencing at the member's annuity starting date that is
the actuarial equivalent of the defined benefit dollar limitation (adjusted
under Subparagraph a of this Paragraph for years of participation less than 10,
if required) with actuarial equivalence computed using a 5 percent interest
rate assumption and the applicable mortality table for the annuity starting
date (and expressing the member's age based on completed calendar months as of
the annuity starting date).
(ii).
Plan Has Immediately Commencing Straight Life Annuity Payable at Both Age 62
and the Age of Benefit Commencement. If the annuity starting date for the
member's benefit is prior to age 62 and occurs in a limitation year beginning
on or after July 1, 2007, and the plan has an immediately commencing straight
life annuity payable at both age 62 and the age of benefit commencement, the
defined benefit dollar limitation for the member's annuity starting date is the
lesser of the limitation determined under Division b.i.(b).(i) of this
Paragraph and the defined benefit dollar limitation (adjusted under
Subparagraph a of this Paragraph for years of participation less than 10, if
required) multiplied by the ratio of the annual amount of the immediately
commencing straight life annuity under the plan at the member's annuity
starting date to the annual amount of the immediately commencing straight life
annuity under the plan at age 62, both determined without applying the
limitations of this article.
ii. Adjustment of Defined Benefit Dollar
Limitation for Benefit Commencement after Age 65
(a). Limitation Years Beginning Before July
1, 2007. If the annuity starting date for the member's benefit is after age 65
and occurs in a limitation year beginning before July 1, 2007, the defined
benefit dollar limitation for the member's annuity starting date is the annual
amount of a benefit payable in the form of a straight life annuity commencing
at the member's annuity starting date that is the actuarial equivalent of the
defined benefit dollar limitation (adjusted under Subparagraph a of this
Paragraph for years of participation less than 10, if required) with actuarial
equivalence computed using whichever of the following produces the smaller
annual amount:
(i). the interest rate and the
mortality table (or other tabular factor) specified in the plan for adjusting
benefits in the same form; or
(ii).
a 5-percent interest rate assumption and the applicable mortality
table.
(b). Limitation
Years Beginning Before July 1, 2007
(i). Plan
Does Not Have Immediately Commencing Straight Life Annuity Payable at Both Age
65 and the Age of Benefit Commencement. If the annuity starting date for the
member's benefit is after age 65 and occurs in a limitation year beginning on
or after July 1, 2007, and the plan does not have an immediately commencing
straight life annuity payable at both age 65 and the age of benefit
commencement, the defined benefit dollar limitation at the member's annuity
starting date is the annual amount of a benefit payable in the form of a
straight life annuity commencing at the member's annuity starting date that is
the actuarial equivalent of the defined benefit dollar limitation (adjusted
under Subparagraph a of this Paragraph for years of participation less than 10,
if required), with actuarial equivalence computed using a 5 percent interest
rate assumption and the applicable mortality table for that annuity starting
date (and expressing the member's age based on completed calendar months as of
the annuity starting date).
(ii).
Plan Has Immediately Commencing Straight Life Annuity Payable at Both Age 65
and the Age of Benefit Commencement. If the annuity starting date for the
member's benefit is after age 65 and occurs in a limitation year beginning on
or after July 1, 2007, and the plan has an immediately commencing straight life
annuity payable at both age 65 and the age of benefit commencement, the defined
benefit dollar limitation at the member's annuity starting date is the lesser
of the limitation determined under §101. F.11.b.ii.(b).(i) and the defined
benefit dollar limitation (adjusted under §101. F.11.a for years of
participation less than 10, if required) multiplied by the ratio of the annual
amount of the adjusted immediately commencing straight life annuity under the
plan at the member's annuity starting date to the annual amount of the adjusted
immediately commencing straight life annuity under the plan at age 65, both
determined without applying the limitations of this article. For this purpose,
the adjusted immediately commencing straight life annuity under the plan at the
member's annuity starting date is the annual amount of such annuity payable to
the member, computed disregarding the member's accruals after age 65 but
including actuarial adjustments even if those actuarial adjustments are used to
offset accruals; and the adjusted immediately commencing straight life annuity
under the plan at age 65 is the annual amount of such annuity that would be
payable under the plan to a hypothetical member who is age 65 and has the same
accrued benefit as the member.
iii. Notwithstanding the other requirements
of this Subparagraph F.10.b, no adjustment shall be made to the defined benefit
dollar limitation to reflect the probability of a member's death between the
annuity starting date and age 62, or between age 65 and the annuity starting
date, as applicable, if benefits are not forfeited upon the death of the member
prior to the annuity starting date. To the extent benefits are forfeited upon
death before the annuity starting date, such an adjustment shall be made. For
this purpose, no forfeiture shall be treated as occurring upon the member's
death if the plan does not charge members for providing a qualified
preretirement survivor annuity, as defined in section 417(c) of the
Internal Revenue Code, upon the member's
death.
c. Minimum Benefit
Permitted. Notwithstanding anything else in this section to the contrary, the
benefit otherwise accrued or payable to a member under this plan shall be
deemed not to exceed the
maximum permissible benefit if:
i. the retirement benefits payable for a
limitation year under any form of benefit with respect to such member under
this plan and under all other defined benefit plans (without regard to whether
a plan has been terminated) ever maintained by the employer do not exceed
$10,000 multiplied by a fraction:
(a). the
numerator of which is the member's number of years (or part thereof, but not
less than 1 year) of service (not to exceed 10) with the employer;
and
(b). the denominator of which is
10; and
ii. the employer
(or a predecessor employer) has not at any time maintained a defined
contribution plan in which the member participated (for this purpose, mandatory
employee contributions under a defined benefit plan, individual medical
accounts under section 401(h), and accounts for postretirement medical benefits
established under section 419A(d)(1) are not considered a separate defined
contribution plan).
Predecessor Employer - if the employer
maintains a plan that provides a benefit which the member accrued while
performing services for a former employer, the former employer is a
predecessor employer with respect to the member in the plan. A
former entity that antedates the employer is also a predecessor
employer with respect to a member if, under the facts and
circumstances, the employer constitutes a continuation of all or a portion of
the trade or business of the former entity.
Severance from Employment - an employee has
a severance from employment when the employee ceases to be an
employee of the employer maintaining the plan. An employee does not have a
severance from employment if, in connection with a change of
employment, the employee's new employer maintains the plan with respect to the
employee.
Year of Participation - the member shall be
credited with a year of participation (computed to fractional
parts of a year) for each accrual computation period for which the following
conditions are met:
a. the member is
credited with at least the number of hours of service (or period of service if
the elapsed time method is used) for benefit accrual purposes, required under
the terms of the plan in order to accrue a benefit for the accrual computation
period; and
b. the member is
included as a member under the eligibility provisions of the plan for at least
one day of the accrual computation period. If these two conditions are met, the
portion of a year of participation credited to the member
shall equal the amount of benefit accrual service credited to the member for
such accrual computation period. A member who is permanently and totally
disabled within the meaning of section 415(c)(3)(C)(i) of the Internal
Revenue Code for an accrual computation period shall receive a
year of participation with respect to that period. In
addition, for a member to receive a year of participation (or
part thereof) for an accrual computation period, the plan must be established
no later than the last day of such accrual computation period. In no event
shall more than 1 year of participation be credited for any
12-month period.
G.
Other Rules
1. Benefits under Terminated
Plans. If a defined benefit plan maintained by the employer has terminated with
sufficient assets for the payment of benefit liabilities of all plan members
and a member in the plan has not yet commenced benefits under the plan, the
benefits provided pursuant to the annuities purchased to provide the member's
benefits under the terminated plan at each possible annuity starting date shall
be taken into account in applying the limitations of this article. If there are
not sufficient assets for the payment of all members' benefit liabilities, the
benefits taken into account shall be the benefits that are actually provided to
the member under the terminated plan.
2. Benefits Transferred from the Plan. If a
member's benefits under a defined benefit plan maintained by the employer are
transferred to another defined benefit plan maintained by the employer and the
transfer is not a transfer of distributable benefits pursuant section 1.
411(d)-4, Q and A-3(c), of the income tax regulations, the transferred benefits
are not treated as being provided under the transferor plan (but are taken into
account as benefits provided under the transferee plan). If a member's benefits
under a defined benefit plan maintained by the employer are transferred to
another defined benefit plan that is not maintained by the employer and the
transfer is not a transfer of distributable benefits pursuant section 1.
411(d)-4, Q and A-3(c), of the income tax regulations, the transferred benefits
are treated by the employer's plan as if such benefits were provided under
annuities purchased to provide benefits under a plan maintained by the employer
that terminated immediately prior to the transfer with sufficient assets to pay
all members' benefit liabilities under the plan. If a member's benefits under a
defined benefit plan maintained by the employer are transferred to another
defined benefit plan in a transfer of distributable benefits pursuant section
1. 411(d)-4, Q and A-3(c), of the income tax regulations, the amount
transferred is treated as a benefit paid from the transferor plan.
3. Formerly Affiliated Plans of the Employer.
A formerly affiliated plan of an employer shall be treated as a plan maintained
by the employer, but the formerly affiliated plan shall be treated as if it had
terminated immediately prior to the cessation of affiliation with sufficient
assets to pay members' benefit liabilities under the plan and had purchased
annuities to provide benefits.
4.
Plans of a Predecessor Employer. If the employer maintains a defined benefit
plan that provides benefits accrued by a member while performing services for a
predecessor employer, the member's benefits under a plan maintained by the
predecessor employer shall be treated as provided under a plan maintained by
the employer. However, for this purpose, the plan of the predecessor employer
shall be treated as if it had terminated immediately prior to the event giving
rise to the predecessor employer relationship with sufficient assets to pay
members' benefit liabilities under the plan, and had purchased annuities to
provide benefits; the employer and the predecessor employer shall be treated as
if they were a single employer immediately prior to such event and as unrelated
employers immediately after the event; and if the event giving rise to the
predecessor relationship is a benefit transfer, the transferred benefits shall
be excluded in determining the benefits provide under the plan of the
predecessor employer.
5. Special
Rules. The limitations of this Chapter shall be determined and applied taking
into account the rules in section 1. 415(f)-1(d), (e) and (h) of the income tax
regulations.
AUTHORITY NOTE:
Promulgated in accordance with
R.S.
11:2225(B).
