WRERA and Multiemployer Plans

[Guest elmo27]

Section 415(b) limits the benefits that a defined benefit plan may pay to any participant. The limitations are defined in terms of a life annuity beginning at any age between 62 and 65. When benefits are paid in a different form, the limitation must be converted to that form using prescribed actuarial assumptions. PPA provided that the mortality assumptions used in IRC §415(b) calculations would be based on the Commissioners’ standard table for determining reserves under group annuity contracts (IRC §807(d)(5)(A)). WRERA substitutes the table used for converting benefit accruals to lump sums under IRC §417(e). This change is mandatory beginning in 2009 and may be adopted voluntarily before then.

Does this apply to multiemployers ---- i.e., do small employers who contribute into a multiemployer plan have to follow the amended interest rates and mortality tables?