Document ID: chunk:federal_register_of_legislation:F2023C00383:reg:2
Version: federal_register_of_legislation:F2023C00383
Segment Type: reg
Provision Reference: reg 2
Character Range: 63448–64597

2                                   A plan pays a benefit of CU100 for each year of service, excluding service before the age of 25. The benefits vest immediately.
                                    No benefit is attributed to service before the age of 25 because service before that date does not lead to benefits (conditional or unconditional). A benefit of CU100 is attributed to each subsequent year.

73 The obligation increases until the date when further service by the employee will lead to no material amount of further benefits. Therefore, all benefit is attributed to periods ending on or before that date. Benefit is attributed to individual accounting periods under the plan's benefit formula. However, if an employee's service in later years will lead to a materially higher level of benefit than in earlier years, an entity attributes benefit on a straight-line basis until the date when further service by the employee will lead to no material amount of further benefits. That is because the employee's service throughout the entire period will ultimately lead to benefit at that higher level.

Examples illustrating paragraph 73