Current through November 30, 2024
Section 1.401(l)-0 - Table of contentsThis section contains a listing of the headings of §§ 1.401(l)-1 through 1.401(l)-6 .
§ 1.401(l)-1 Permitted disparity with respect to employer-provided contributions or benefits. (b) Relationship to other requirements.(c) Definitions. (2) Average annual compensation.(3) Base benefit percentage.(4) Base contribution percentage.(6) Benefit, right, or feature.(7) Covered compensation. (ii) Special rules. (B) Proposed regulation definition.(iii) Period for using covered compensation amount.(8) Defined benefit plan.(9) Defined contribution plan.(13) Employer contributions.(14) Excess benefit percentage.(15) Excess contribution percentage.(16) Excess plan. (i) Defined benefit excess plan.(ii) Defined contribution excess plan.(17) Final average compensation.(iii) Determination of section 414(s) compensation.(18) Gross benefit percentage.(19) Highly compensated employee.(21) Nonexcludable employee.(22) Nonhighly compensated employee.(28) Plan year compensation.(30) Section 401(l) plan.(31) Section 414(s) compensation.(32) Social security retirement age.(33) Straight life annuity.§ 1.401(l)-2 Permitted disparity for defined contribution plans. (a) Requirements. (2) Excess plan requirement.(b) Maximum permitted disparity. (2) Maximum excess allowance.(c) Uniform disparity. (2) Deemed uniformity. (ii) Overall permitted disparity.(iii) Non-FICA employees.(d) Integration level. (3) Single dollar amount.(5) Prorated integration level for short plan year.§ 1.401(l)-3 Permitted disparity for defined benefit plans. (a) Requirements. (2) Excess or offset plan requirement.(5) Integration or offset level.(6) Benefits, rights, and features.(b) Maximum permitted disparity.(2) Maximum excess allowance.(3) Maximum offset allowance.(4) Rules of application.(i) Disparity provided for the plan year.(ii) Reductions in disparity rate.(iii) Normal and optional forms of benefit.(D) Post-retirement cost-of-living adjustments.(E) Section 417(e) exception.(c) Uniform disparity. (2) Deemed uniformity. (ii) Use of fractional accrual and disparity for 35 years.(iii) Use of fractional accrual and disparity for fewer than 35 years.(iv) Different social security retirement ages.(v) Reduction for integration level.(vi) Overall permitted disparity.(C) Fractional accrual plans.(vii) Non-FICA employees.(viii) Average annual compensation adjustment for offset plan.(d) Requirements for integration level or offset compensation.(2) Covered compensation.(3) Uniform percentage of covered compensation.(4) Single dollar amount.(6) Intermediate amount safe harbor.(7) Prorated integration level for short plan year.(8) Demographic requirements. (ii) Attained age requirement.(iii) Nondiscrimination requirement. (A) Minimum percentage test.(C) High dollar amount test.(D) Individual disparity reductions.(9) Reduction in the 0.75-percent factor if integration or offset level exceeds covered compensation. (ii) Uniform percentage of covered compensation.(iii) Single dollar amount.(B) Individual reductions.(e) Adjustments to the 0.75-percent factor for benefits commencing at ages other than social security retirement age.(2) Adjustments. (i) Benefits commencing on or after age 55 and before social security retirement age.(ii) Benefits commencing after social security retirement age and on or before age 70.(iii) Benefits commencing before age 55.(iv) Benefits commencing after age 70.(4) Benefit commencement date.(ii) Qualified social security supplement.(f) Benefits, rights, and features.(1) Defined benefit excess plan.(g) No reductions in 0.75-percent factor for ancillary benefits.(h) Benefits attributable to employee contributions not taken into account.(i) Multiple integration levels. [Reserved]§ 1.401(l)-4 Special rules for railroad plans.(b) Defined contribution plans. (2) Single integration level method. (3) Two integration level method. (ii) Total disparity requirement.(iii) Intermediate disparity requirement.(c) Defined benefit excess plans. (2) Single integration level method. (3) Two integration level method. (ii) Employee with lower covered compensation.(iii) Employee with lower railroad retirement covered compensation.(d) Offset plans. (2) Maximum tier 2 and supplementary annuity offset allowance.(e) Additional rules.(2) Adjustments to 0.75-percent factor.(3) Adjustments to 0.56-percent factor.(4) Overall permitted disparity.§ 1.401(l)-5 Overall permitted disparity limits.(a) Introduction. (3) Plans taken into account.(b) Annual overall permitted disparity limit.(2) Total annual disparity fraction.(3) Annual defined contribution plan disparity fraction.(4) Annual defined benefit excess plan disparity fraction.(5) Annual offset plan disparity fraction.(6) Annual imputed disparity fraction.(7) Annual nondisparate fraction.(8) Determination of fraction.(iii) Offset arrangements.(B) Defined benefit plans.(C) Defined contribution plans.(iv) Applicable percentages.(v) Fractional accrual plans.(c) Cumulative permitted disparity limit.(1) In general. (i) Employees who benefit under defined benefit plans.(ii) Employees who do not benefit under defined benefit plans.(iii) Certain plan years disregarded.(iv) Determination of type of plan.(v) Applicable plan years.(vi) Transition rule for defined contribution plans.(2) Cumulative disparity fraction.(3) Determination of total annual disparity fractions for prior years.(4) Special rules for greater of formulas and offset arrangements. (i) Greater of formulas. (B) Separate satisfaction by formulas.(ii) Offset arrangements.(B) Separate satisfaction by plans.§ 1.401(l)-6 Effective dates and transition rules.(a) Statutory effective date.(2) Collectively bargained plans.(b) Regulatory effective date. (2) Plans of tax-exempt organizations.(3) Defined contribution plans.(4) Defined benefit plans.(c) Compliance during transition period.T.D. 8359, 56 FR 47617, Sept. 19, 1991; 57 FR 10818, Mar. 31, 1992, as amended by T.D. 8486, 58 FR 46830, Sept. 3, 1993