A bill to amend the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code of 1954 to ensure that a defined benefit plan under which benefits are based on final average compensation does not fail to meet either the benefit accrual requirements thereunder, or the standards for reasonableness of actuarial assumptions in meeting funding requirements thereunder, solely by reason of allowing certain elections and revocations thereof affecting benefit accruals, if the relevant actuarial assumptions under the plan are made under the individual level premium cost method.

Summary

Amends the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code to revise benefit accrual requirements for defined benefit plans. Requires the use of the individual level premium cost method to establish the annual actuarial cost of such plan benefits and expenses. Requires that accrued benefits upon separation from service be not less than the actuarial accumulated value of the normal costs of such benefits for all periods before the separation. Provides that certain actuarial assumptions and methods of computing a participant's current or future benefit accruals, under specified types of defined benefit plans, shall not be treated as unreasonable solely because they take into account only so much of the current or future compensation of the participant as is recognized as anticipated compensation at the time of any election under the plan.

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1 official file

• Introduced in House

  summary · EN · 19 March 1985

  Open at official source

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