Severance payments

[Guest tonjer]

I have also posted this on the DB thread, but thought I would also post this on this thread.

What are the cites for not including severance payments in a former employee's compensation for purposes of determining benefits in a DB plan? I understand that severance is paid to a former employee, etc., but is there an IRS cite or other authority?

Along the same line, Labor Reg. 2530.200b-2 provides that an employee is credited with an hour of service for each hour in which the employee is entitled to payment on account of a period of time during which no duties are performed (irrespective of whether the employee has terminated employment), then provides a laundry list of instances. Because severance pay is not listed, I take that to mean an employee may not be credited with service for hours associated with severance pay?