Form 5624 - Employee Benefit Plan Defined Benefit Plans Minimum Vesting Standards (Page 4 of 6) in pdf

General

Plan Reference

Yes No N/A

Does the plan provide neither a decrease in benefit payments to a participant

(or beneficiary), nor a decrease in a separated participant’s rights to benefits,

because of an increase in social security benefits? [2049]

ii.

Does the plan provide for an accrual computation period for purposes of

providing an accrued benefit? [2050]

iii.

For purposes of benefit accrual, does the plan take into account every year

required by DOL Regulations? [2051]

iv.

If an employee may begin participation on a date other than the first day of

an accrual computation period, does the plan provide for a partial year of

participation as required by the DOL Regulations? [2052]

Does the plan not defer the accrual of benefits on behalf of an employee

beyond the completion of 2 continuous years of service? [2053]

vi. If the plan defers accruals during a period of up to a participant’s first 2 years

of service, does the participant retroactively accrue a benefit for that period after it

ends? [2053]

Normal Retirement Benefit

Is the plan’s accrued benefit always ascertainable? [2057]

ii.

Is the plan’s normal retirement benefit, as specified in the plan, equal to the

plan’s greatest early retirement benefit, or the benefit at normal retirement age,

whichever is greater? [2058]

Methods

Once a plan satisfies the requirements of either i., ii., or iii. DO NOT complete the

remaining items of section d.

133-1/3 Percent Test

Is the accrued benefit that becomes payable at normal retirement age

equal to the plan’s normal retirement benefit? [2062]

Is the accrual rate in any given year under the plan no greater than

133-1/3 percent of the accrual rate in any prior year (make appropriate

adjustments for ancillary benefits)? [2062]

If the answer is “Yes,” DO NOT complete the remainder of section d.

ii.

3 Percent Test (Use this test last for Unit Benefit Plans).

In a fully integrated excess or offset plan, does the plan prohibit an early

retirement benefit? (If the answer is “No,” use another test.) [2062]

If the plan bases its benefit on average compensation, does it specify

that the benefit is determined on the basis of compensation averaged over

consecutive years of service, not more than 10, which yield the highest

average? (If the answer is “No,” the 3 percent test cannot be met.) [2062]

Is the accrual of plan benefits based on a “normal retirement benefit”

which is figured assuming the earliest possible entry age under the plan? (If

no entry age is specified by the plan, use a 0.) [2062]

5624

Form

(Rev. 12-98) (page 4)

Department of the Treasury - Internal Revenue Service

Form 5624 - Employee Benefit Plan Defined Benefit Plans Minimum Vesting Standards Page 4

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