The Treasury regulations provide that the present value of any accrued benefit
paid to a participant as a lump sum may not be less than the amount calculated using a specified applicable interest rate and mortality tables.
Prepare annual employee benefit statements including each member%s accrued benefit
, projected benefit, vesting status and value of lump sum death benefit.
The proposed regulations offered three approaches to bifurcating the accrued benefit
so that the minimum present value requirements apply only to a portion of the accrued benefit
The "minimum benefit" was the accrued benefit
under the old plan at the end of the transition period.
The new plan provided that, at retirement, participants were given the greater of 1) their frozen accrued benefit
under the original defined benefit formula at the time of the plan's conversion, or 2) their cash balance account balance.
The excess of the actuarial accrued liability over the actuarial value of assets is the unfunded actuarial accrued liability (also called the unfunded accrued benefit
A plan may not require, as a condition of participation in the plan, that an employee complete a period of service extending beyond the later of (a) age 21, or (b) the completion of one year of service or the completion of two years of service if the plan provides that after not more than two years of service each participant has a nonforfeitable right to 100% of his accrued benefit
ERISA Section 203(a)(1) states that an employee's accrued benefit
derived from his own contributions must, at all times, be nonforfeitable.
Active management employees who participate in the company's defined benefit pension plan will retain their accrued pension benefit, as earned through 31 December 2009, and are eligible to receive their vested accrued benefit
when they leave Qwest.
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.
Under section 72(p)(2), a loan from a qualified retirement plan to a participant is not treated as a taxable distribution under three conditions: (1) The principal amount of the loan, when added to the outstanding balance of any other loans from the same plan, does not exceed the lesser of (a) $50,000 or (b) the greater of one-half of the present value of the nonforfeitable accrued benefit
of the employee under the plan or $10,000.