ERISA Section 105(1)(B)(i) requires the administrator of a defined benefit plan, other than a one-participant plan, to furnish a pension benefit statement every three years to each employee participant who has a nonforfeitable accrued benefit
. Using the latest available information, the statement should indicate the total benefits accrued--plus the nonforfeitable pension benefits, if any, that have accrued--or the earliest date on which benefits will become nonforfeitable.
Votes were cast 2 to 1 in favor of approving a plan that calls for accrued benefit
reduction plus elimination of early retirement subsidies and extra benefit credits.
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.
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
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 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.
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
. In the case of a plan maintained exclusively for employees of a tax-exempt (under IRC Section 501(a)) educational institution, the minimum age limitation can be 26 instead of 21, but only if the plan provides that each participant having at least one year of service 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.