Louisiana Administrative Code › Title 58 - RETIREMENT › Part XVII - Registrars of Voters Employees' Retirement System › Chapter 2 - Internal Revenue Code Provisions › Section XVII-201 - Limitation on Benefits

Current through Register Vol. 50, No. 6, June 20, 2024
A.
				The limitations of this Chapter shall apply in limitation years beginning on or
				after July 1, 2007, except as otherwise provided herein.
B. The annual benefit otherwise payable to a
				member under the plan at any time shall not exceed the maximum permissible
				benefit. If the benefit the member would otherwise accrue in a limitation year
				would produce an annual benefit in excess of the maximum permissible benefit,
				the benefit shall be limited (or the rate of accrual reduced) to a benefit that
				does not exceed the maximum permissible benefit.
C. If the member is, or has ever been, a
				member in another qualified defined benefit plan (without regard to whether the
				plan has been terminated) maintained by the employer or a predecessor employer,
				the sum of the member's annual benefits from all such plans may not exceed the
				maximum permissible benefit.
D. The
				application of the provisions of this chapter shall not cause the maximum
				permissible benefit for any member to be less than the member's accrued benefit
				under all the defined benefit plans of the employer or a predecessor employer
				as of the end of the last limitation year beginning before July 1, 2007 under
				provisions of the plans that were both adopted and in effect before April 5,
				2007. The preceding sentence applies only if the provisions of such defined
				benefit plans that were both adopted and in effect before April 5, 2007
				satisfied the applicable requirements of statutory provisions, regulations, and
				other published guidance relating to section 415 of the
Internal
				Revenue Code
in effect as of the end of the last limitation year
				beginning before July 1, 2007, as described in section 1. 415(a)-1(g)(4) of the
				income tax regulations.
E. The
				limitations of this Chapter shall be determined and applied taking into account
				the rules in Subsection G.
F.
				Definitions
Annual Benefit
- a benefit that is payable
				  annually in the form of a straight life annuity. Except as provided below,
				  where a benefit is payable in a form other than a straight life annuity, the
				  benefit shall be adjusted to an actuarially equivalent straight life annuity
				  that begins at the same time as such other form of benefit and is payable on
				  the first day of each month, before applying the limitations of this article.
				  For a member who has or will have distributions commencing at more than one
				  annuity starting date, the annual benefit shall be determined as of each such
				  annuity starting date (and shall satisfy the limitations of this chapter as of
				  each such date), actuarially adjusting for past and future distributions of
				  benefits commencing at the other annuity starting dates. For this purpose, the
				  determination of whether a new starting date has occurred shall be made without
				  regard to section 1. 401(a)-20, Q and A 10(d), and with regard to section 1.
				  415(b)-1(b)(1)(iii)(B) and (C) of the income tax regulations.
a. No actuarial adjustment to the benefit
				shall be made for:
i. survivor benefits
				payable to a surviving spouse under a qualified joint and survivor annuity to
				the extent such benefits would not be payable if the member's benefit were paid
				in another form;
ii. benefits that
				are not directly related to retirement benefits (such as a disability benefit,
				preretirement incidental death benefits, and postretirement medical benefits);
				or
iii. the inclusion in the form of
				benefit of an automatic benefit increase feature, provided the form of benefit
				is not subject to section 417(e)(3) of the
Internal Revenue
				Code
and would otherwise satisfy the limitations of this Chapter, and
				the plan provides that the amount payable under the form of benefit in any
				limitation year shall not exceed the limits of this Chapter applicable at the
				annuity starting date, as increased in subsequent years pursuant to section
				415(d) For this purpose, an automatic benefit increase feature is included in a
				form of benefit if the form of benefit provides for automatic, periodic
				increases to the benefits paid in that form. The determination of the annual
				benefit shall take into account Social Security supplements described in
				section 411(a)(9) of the
Internal Revenue Code
and benefits
				transferred from another defined benefit plan, other than transfers of
				distributable benefits pursuant section 1. 411(d)-4, Q and A-3(c), of the
				income tax regulations, but shall disregard benefits attributable to employee
				contributions or rollover contributions. Effective for distributions in plan
				years beginning after December 31, 2003, the determination of actuarial
				equivalence of forms of benefit other than a straight life annuity shall be
				made in accordance with §201. F.1.b or F.1.c.