Under both of the formulas at issue, the participant's accrued benefit
was a lump sum that increased yearly at a rate that did not diminish.
And accrued benefits
in another incentive scheme jumped to pounds 1.
Actuarial gains (losses) arise from the difference between actual long-term rate of return on plan assets for a period and the expected long-term rate of return on plan assets for that period and from changes in actuarial assumptions used to determine the accrued benefit
If the plan sponsor had withheld FICA on plan distributions received in 1994 or 1995 attributable to that $12,000 vested accrued benefit
, a refund could be claimed on those 1994 or 1995 FICA taxes.
In the case of a defined benefit plan, the maximum benefit is determined by calculating the accrued benefit
of a single life annuity at a rate equal to 2.
The IRS has agreed not to challenge the tax-qualified status of terminated plans, as long as (11 the QTA determines whether the joint-and-survivor annuity requirements apply to any benefit payable under the plan, (2) participants' and beneficiaries' accrued benefits
are vested as of the date of deemed termination and (3) the QTA furnishes a Sec.
1) The 415(b) test must be met with the accrued benefit
derived from the purchase of permissive service credits included in the benefits tested [IRC 415(n)(1)(A)];
Replacing projected valuation methods with a single accrued benefit
The prior service costs on which the intangible asset limit is based are calculated using projected benefits, which tend to be considerably larger in pay-related pension plans than the accrued benefit
obligation on which the additional minimum liability is based.
411 (a)(7), all amounts credited to a participant's account under the plan are part of the accrued benefit
and must satisfy Sec.
Also, because Y provided that A's accrued benefit
is payable to his surviving spouse on his death, A was not required to obtain spousal consent for the Y distribution and the plan was excluded from the joint-and-survivor annuity and pre-retirement survivor annuity requirements of See.
402(b)(4), which provides that they are taxed each year on the employee's vested accrued benefit
as of the close of the trust's tax year, less the employee's investment in the contract.
The "minimum benefit" was the accrued benefit
under the old plan at the end of the transition period.
The plan must provide an accrued benefit
of at least 1 percent of the employee's final average compensation times years of service up to a minimum of 20 percent.
Finally, EDHEC recommends that pension funds use the projected benefit obligation to compute pension cost but that they report the accrued benefit
as the pension liability in their balance sheet, a measure that would then be consistent with the prudential measure of pension liabilitiies.