Form 6044 - Employee Plan Deficiency Checksheet - 2006 Page 2
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4651,652,653
Section
of the plan must provide that if a retirement benefit in any form other than a straight
life annuity is offered, or if the employees contribute or make rollover contributions, then this benefit must
be adjusted to a straight life annuity, beginning at the same age, which is the actuarial equivalent of such benefit.
Ill.b., c., d.
Prior to the first day of the first limitation year beginning in 1995, the plan should provide that in order to determine
the actuarial equivalence of different forms of benefit payment, the interest rate assumptions may not be less than
the greater of 5 percent or the rate specified in the plan for determining actuarial equivalence for the particular form
of retirement benefit. For limitation years beginning on or after January 1, 1995 (and for employers who have
elected to treat these rules as being effective on an earlier date that is on or after December 31, 1994), the
actuarially equivalent straight life annuity for purposes of applying the limitations under section 415(b) to benefits
that are not subject to section 417(e)(3) is equal to the greater of the equivalent annual benefit computed using the
interest rate and mortality table, or tabular factor, specified in the plan for actuarial equivalence for the particular
form of benefit payable, and the equivalent annual benefit computed using a 5 percent interest rate assumptions and
the applicable mortality table. For plan benefits subject to section 417(e)(3), the equivalent annual straight life
annuity is equal to the greater of the equivalent annual benefit computed using the interest rate and mortality table,
or tabular factor, specified in the plan for actuarial equivalence for the particular form of benefit payable, and the
equivalent annual benefit computed using the applicable interest rate and the applicable mortality table. The
applicable interest rate used for determining actuarial equivalencies is the annual interest rate on 30-year Treasury
securities as specified by the Commissioner. The applicable mortality table is the mortality table described in Rev.
Rul. 95-6. IRC sections 415(b)(2)(B), 415(b)(2)(E) and 417(e)(3), Rev. Rul. 95-6, 1995-1 C.B. 80, Rev. Rul. 98-1,
1998-2 I.R.B. 5, Notice 83-10, 1983-1 C.B. 536, G-2.
656,657,
658,659
Where a retirement benefit is provided at or after age 62 but prior to the participant's social security
retirement age (SSRA), then section
of the plan should provide that the benefit may not exceed
III.e., f.
an annual benefit of $90,000 reduced by: (i) in the case of a participant whose SSRA is 65, 5/9 of 1% for each
month by which benefits commence before the month in which the participant attains age 65, or (ii) in the case of a
participant whose SSRA is greater than 65, 5/9 of 1 % for each of the first 36 months and 5/12 of 1% for each of
the additional months (up to 24) by which benefits commence before the month in which the participant attains
SSRA. If the benefit begins before age 62, the benefit must be limited to the actuarial equivalent of the participant's
limitation for benefits commencing at age 62, with the reduced dollar limitation for such benefits further reduced for
each month by which benefits commence before the month in which the participant attains age 62. Prior to the first
day of the first limitation year beginning in 1995, in order to determine actuarial equivalence for this purpose, the
interest rate assumption used by the plan may not be less than the greater of 5 percent or the rate specified in the
plan for determining actuarial equivalence for early retirement. SSRA is age 65 it the participant was born before
1/1/38, age 66 if born before 1/1/55, and age 67 if born after 12/31/54. For limitation years beginning on or after
January 1, 1995 (and for employers who have elected to treat these rules as in effect on or after December 8,
1994), if the benefit begins before age 62, the benefit may not exceed the lesser of the equivalent amount
computed using the interest rate and mortality table (or tabular factor) used in the plan for actuarial equivalence for
early retirement benefits, and the amount computed using 5 percent interest and the applicable mortality table (to
the extent that the mortality decrement is used prior to age 62), regardless of whether the benefit is or is not subject
to section 417(e)(3). IRC sections 415(b)(2)(C) and 415(b)(2)(E)(i), Regs. sections 1.415-3(e) and 1.415-3(b)(1)(i),
Notice 83-10, 1983-1 C.B. 536 and Notice 87-21, Q&A 5,1987-1 C.B. 458, and Rev. Ruls. 95-6 and 98-1.
660,661
If the benefit under the plan commences after social security retirement age (SSRA), the plan may
provide for an increase in the maximum dollar limitation on such benefit to an amount that is actuarially
equivalent to the maximum dollar limitation on a benefit commencing at SSRA. The increased maximum benefit,
Ill.g.
however, must not exceed 100 percent of the participant's high 3 year average compensation. The maximum dollar
limitation on benefits is the lesser of the equivalent amount computed using the interest rate and mortality table (or
tabular factor) used in the plan for actuarial equivalence for late retirement benefits, and the amount computed
using 5 percent interest and the applicable mortality table, regardless of whether the benefit is or is not subject to
section 417(e)(3). Section
of the plan should be amended accordingly. IRC sections 415(b)(2)(D) and
415(b)(2)(E)(ii), Notice 83-10, G-4, 1983-1 C.B. 536 and Notice 87-21, Q&As 4 and 5, 1987-1 C.B. 458, and Rev.
Ruls. 95-6 and 98-1.
630
Section
of the plan must provide that the limitations on benefits of section 415(b) of the Code
do not apply where the total annual benefits payable to a participant under this defined benefit plan and
all other qualified defined benefit plans of the employer do not exceed $10,000 in the aggregate. Where a plan
Ill.h.
provides the $10,000 minimum limitation, the plan must provide that the minimum limitation is not applicable for a
participant whose employer maintains or has maintained a defined contribution plan in which such employee
participated. IRC 415(b)(4) and Regs. section 1.415-3(f).
Catalog Number 43038M Page 2 of 4
Form 6044 (Rev. 3-2006)
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