Dougsbpc Posted November 21, 2011 Posted November 21, 2011 A small DB plan was frozen 3 years ago. The plan had provided 3% of pay per year of service. The company now wants to unfreeze the plan and simply restore the 3% pay for each year of service (including the years the plan was frozen). Is this considered a benefit increase to an HCE and therefore cannot be part of the cushion amount?
Andy the Actuary Posted November 21, 2011 Posted November 21, 2011 The plan will be amended to provide a new benefit. Thus, would agree cushion amount is limited. Would you have asked the question if the new rate were 10%? The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice.
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