Cash Balance Plans - Fractional Rule

[Mister Met]

I believe a cash balance plan that does not use "more than 10 years" of compensation can use the fractional rule to pass the accrual rules. Therefore, for a cash balance plan whose credits are service-based only, can we can use fractional rule to pass? For example, the participant might get a flat $500 a year for years 1-10, $750 a year for years 11-20, etc.

[Mike Preston]

You can certainly use the rule, if it works. Have you tested it? It doesn't appear to me that it would pass, but I could be wrong on that.