Guest Keith N Posted November 28, 2001 Posted November 28, 2001 DB/DC Comp limit for Plan Years BEGINNING in 2002: $200,000 DB Maximum annuity at retirement ages 62-65 for plan years ENDING in 2002:$160,000/year straight life annuity. (higher limits for retirement ages > 65, lower limits for retirement ages
david rigby Posted November 28, 2001 Posted November 28, 2001 Correct. But the plan must recognize the change in comp. limit (generally that means a plan amendment) in order for it to have any effect. I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
Guest slt Posted December 11, 2001 Posted December 11, 2001 Pax, this would not be the case if the plan incorporates the limits by reference to the applicable Code section (e.g., the Plan says that benefits are limited pursuant to Code section 415(B)). However, if your plan says $160,000 under 415(B) as adjusted by COLAs - that's not good enough because the increase from $160,000 to $200,000 is not a COLA but a statutory increase. So, the answer really depends on the plan language.
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