415 Limits & Bifurcated Benefits

DBP participant has an annuity benefit that is less than his/her 415 limit but their lump sum exceeds the maximum allowable. Can the plan pay the maximum lump sum which, for example, converts to 90% of the accrued benefit using statutory assumptions and then pay the remaining 10% of accrued benefit as an annuity (assuming the plan document allows for bifurcated benefit distributions in general)?

No.  Receiving a lump sum equal to 100% of the maximum benefit uses up the maximum benefit.  There is nothing left in the maximum to be paid as an annuity.

That was my thought but was having a "discussion" with actuary who thought otherwise and a colleague also officially broke the tie (in my favor - yay!), otherwise you could circumvent 415, especially for owner-only or owner-centric plans. Thanks