Alternatively, the plan can distribute a lump sum that satisfies the rule with respect to that payment, while the remaining portion also satisfies a minimum requirement where that portion (expressed as the normal form of benefit at normal retirement age) may not be less than the excess of (1) the participant's total accrued benefit
over (2) the annuity payable in that form that is actuarially equivalent to the lump sum payment, determined using the applicable interest rate and mortality table.
In the first approach, a plan could have provided for two separate portions of the accrued benefit
that were determined without regard to any election of optional form of benefit and permitted a participant to select different distribution options with respect to each of those portions.
The court recognized that during this period, "the accrued benefit
payable at normal retirement age is effectively frozen," and older employees were more likely than younger employees to experience long wear-aways.
participants had opening cash balance account balances that were less than the value of their frozen traditional defined benefit accrued benefits
The normal cost plus the unfunded accrued benefit
obligation to be amortized in the current period equals the annual required contribution of the employer for the period.
The disparity provided under a plan that determines each employee's accrued benefit
under the fractional accrual method in IRC Section 411(b)(1)(C) is subject to special uniformity requirements.
2) For purposes of a defined benefit plan, "accrued benefit
" is defined as the employee's accrued benefit
as determined under the plan and expressed in the form of an annual benefit commencing at normal retirement age.
However, the court pointed out, because his nonforfeitable accrued benefit
under the plan was less than $50,000, the section 72(p)(2)(A)(ii) amount of one-half that accrued benefit
which in turn leads to a larger accrued benefit
at retirement measured
An alternative would be for employers to report the entire unfunded accrued benefit
obligation as a liability on the face of the financial statements, as in the private sector.
A post-heart attack exercise program can lead to fast improvements in blood flow and overall health, but any accrued benefit
can be lost within four weeks if the exercise regimen stops.
12, but apparently either a level funding or accrued benefit
approach can be used.
A formula would be similar to a lump sum-based formula if "the formula provides that a participant's accrued benefit
payable at normal retirement age .
The benefit statement must indicate, on the basis of the latest available information, the participant's or beneficiary's total accrued benefit
and the participant's or beneficiary's vested accrued benefit
, or indicate the earliest date on which the accrued benefit
will become vested.
In the filing, Gannett clarified the definition of change in control, provided for the payment of accrued benefit
amounts in a lump sum, provided for an accelerated vesting of retirement benefits, and prohibited a termination or a benefit reducing amendment to its retirement plan.