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Hybrid Plan - Variable Annuity Exception


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I don't work with cash balance plans, so please forgive me if this is a simple question. 

1.411(a)(13)-1(d)(4)(I)(C) says "If a variable annuity benefit formula adjusts benefits by reference to the difference between a rate of return on plan assets (or specified market indices) and a specified assumed interest rate of 5 percent or higher, then the variable annuity benefit formula is not treated as being reasonably expected to provide a smaller total dollar amount of future adjustments for the participant than for any similarly situated, younger individual who is or could be a participant in the plan, and thus such a variable annuity benefit formula does not have an effect similar to a lump sum-based benefit formula."

What is the significance of this exception, other than that a plan with this type of formula wouldn't be a statutory hybrid plan? The 2010 preamble mentions that people wanted this exception widened to apply to more plans, so it seems there must be some advantage to fitting within the exception. 

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