benefit accrual

[Guest lip]

Plan begins 1-1-03

one participant age 45,nra 55

bnft formula is 10% of fas accrued over yopart

at 50,his CURRENT 3 yr avg salary is 4k/mo.

bnft formula is changed and new participant enters plan.

new formula is :100% of accrued bnft @1-1-08,plus 2% times all yop.

Q: if his FINAL avg salary at 55 is 8k/month,is his accrued bnft at 1-1-08

50%of 8k?

[mwyatt]

Depends on how the amendment was written (hard freeze on 1/1/2008, or get compensation increases). Noone can answer without looking at the document (although think you might have some problems from discrimination standpoint if you let CAS float up).

[Mike Preston]

I think that allowing CAS to float up is one of the exceptions under a4, is it not?

[Guest lip]

I think that allowing CAS to float up is one of the exceptions under a4, is it not?

Mike,

I cant find anything in a4;although I mey be missing it??

ty

[Mike Preston]

I really don't have time to do an exhaustive search. Maybe somebody else will pitch in. But I think it is in there. Look around the fresh start rules.

[AndyH]

What is "CAS"?

Has it been on Letterman's "Will it float"?

That's my contribution to the issue until I understand it.

[Mike Preston]

I'm pretty sure that "AS" stands for average salary. I think "C" stands for carrer, but it might have some other meaning associated with it. In any event, it is the compensation upon which the benefit is based and the question is close, but not precisely a Letterman question: It is "can it float?"

[AndyH]

Oh, thanks. Got it now. I saw that show - if floats.

1.401(a)(4)-13(d). But the question is ambiguous and that cite may or may not be useful. Depends on the document. As Mike W said.

[mwyatt]

CAS=Confederated Association of Soldiers, or Current Average Salary, depending on how the mood fits. Still showing my age talking about integration rather than permitted disparity...