Imputed benefit accrual service

Article Abstract:

Employers that wish to impute benefit accrual service to a highly paid executive that will be transferred to an affiliated employer should consider retaining the executive on its payroll and selling the executive's services to the other employer. Amending the defined benefit plan to allow for imputed service for vesting purposes will increase the risk of plan disqualification. Such modifications are allowable only if the same provisions are available to non-highly compensated employees, do not have the effect of favoring highly paid employees and are justified for business reasons.

Compensation and benefits, Executives, Executive compensation, Defined benefit plans

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Final separate lines of business regulations

Article Abstract:

Final Treasury regulations concerning separate lines of business were issued on Dec 2, 1991. The regulations allow employers to determine whether they operate qualified separate lines of business so that they can apply the minimum coverage requirements and the minimum participation rules to their qualified retirement plans. A separate line of business must be a separate organizational unit, have separate financial accountability, have separate employees and have separate management.

Line of business reporting

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Required beginning date for qualified plan distributions

Article Abstract:

The rules governing employee ages and beginning dates for qualified pension plan distributions have been modified. Participants still employed do not have to begin to take distributions at age 70 1/2, under this change. Nondiscrimination rules, rollover eligibility, and the rule on optional election are also discussed.

Pension funds

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