Variable Annuity Plan

[AndyH]

I'm looking at what to me is a new animal and would appreciate any comments.

It seems to be described as a "variable annuity plan" where the accrued benefit appears to be increased or decreased with actual investment experience. The plan expresses benefits as annuity benefits and offers an optional lump sum (converted using 417(e) rules).

It appears to me that this does not meet the definition of a "Statutory Hybrid Plan" of Notice 2007-6 since it does still appear to be annuity based. The accrued benefit each year is a fraction of the 415 dollar limit. There are no references to compensation. (Take that, FASB).

What is the legal status of a DB plan that adjusts accrued benefits for actual investment experience but does not meet the conditions of Notice 2007-6? Other comments?