415 lump sum and colas on comp limit

[Draper55]

i do not have 415 mastery on my bucket list so please

forgive my ignorance in asking this question..

suppose participant retires under 100% comp limit in year x and

plan contains 415(d) cola adj language for years after

termination(x+1,x+2,etc.). if plan is subsequently terminated in say year

x+3 and the participant with spousal consent now elects lump sum.

Must the lump sum be based on the comp limit back in year

x or can it be based on the adjusted limit?

[Andy the Actuary]

I believe this depends on whether 100% of average comp is less than 401(a)(17) average. E.g., if average comp equals $60,000, you get a different answer than if comp each year prior to application of 401(a)(17) is $500,000.