Okla. Admin. Code § 590:35-15-4

Current through Vol. 42, No. 4, November 1, 2024

Section 590:35-15-4 - Combination of defined contribution plan and defined benefit plan

(a) For Limitation Years commencing before January 1, 2000, if a Qualified Participant also is, or was, covered under a defined benefit plan maintained, or contributed to, by the Employer, the sum of the amounts determined under (1) and (2) below may not exceed 1.0 in any Limitation Year.

(1) The Qualified Participant's "defined benefit fraction" - A fraction, the numerator of which is the sum of the Qualified Participant's projected annual benefits under all defined benefit plans (whether or not terminated) maintained, or contributed to, by the Employer, and the denominator of which is the lesser of (A) 1.25 times the dollar limitation of Code Section 415(b) and (d) for the Limitation Year, or (B) 1.4 times the Qualified Participant's average compensation for the 3 consecutive years that produces the highest average; and

(2) The Qualified Participant's "defined contribution fraction" - A fraction, the numerator of which is the sum of the Annual Additions (within the meaning of Code Section 415(c)(2)) to the Qualified Participant's Account under all defined contribution plans (whether or not terminated) maintained, or contributed to, by the Employer for the current and all prior Limitation Years (minus the amount, if any, determined under Treasury Regulations issued pursuant to Section 235(g) of the Tax Equity and Fiscal Responsibility Act of 1982), and the denominator of which is the lesser of the following amounts determined for such year and for each prior year of service with the Employer:

(A) 1.25 times the dollar limitation in effect under Code Section 415(c)(1)(A) for such year, or

(B) 1.4 times the amount which may be taken into account under Code Section 415(c)(1)(B).

(b) For purposes of (a) above, effective for Limitation Years commencing before January 1, 2000, "projected annual benefits" means the annual retirement benefit (adjusted to an actuarially equivalent straight life annuity if such benefit is expressed in a form other than a straight life annuity or qualified joint and survivor annuity) to which the Participant would be entitled under the terms of the defined benefit plan, if the Participant continued employment until Normal Retirement Age (or current age, if later) and the Participant's Compensation for the Limitation Year and all other relevant factors used to determine such benefit remained constant until Normal Retirement Age (or current age, if later). If, in any Limitation Year, the sum of the defined benefit plan fraction and the defined contribution plan fraction will exceed 1.0, the rate of benefit accruals under the defined benefit plan will be reduced so that the sum of the fraction equals 1.0.

Okla. Admin. Code § 590:35-15-4

Added at 15 Ok Reg 793, eff 11-12-97 (emergency); Added at 15 Ok Reg 3282, eff 7-13-98