25. Adjustments to frozen accrued benefit
Publication 6165 — Defined Benefit Listing of Required Modifications and Information Package (LRM) · 2026-10-03 edition · updated 2026-10-04 · United States
Statement of Requirement: Treas. Regs. 1.401(a)(4)-13(c)(5), 1.401(a)(4)-13(d), 1.401(a)(17)-1(e)
Document Provision: _____
(Note to reviewer: In accordance with Treas. Reg. 1.401(a)(4)-13(d), if as of the latest fresh-start date, the plan contained a benefit formula under which benefits of each participant in the fresh-start group that are accrued as of the freshstart date and are attributable to service before the fresh-start date would be affected by compensation earned by the participant in years beginning after the latest fresh-start date (where, for example, the benefit formula as of the fresh-start date bases benefits on a participant's highest average pay), an employer may elect to provide that the frozen accrued benefit of participants in the fresh-start group will be increased after the fresh-start date to reflect any increases in such participants' compensation after that date. If the employer elects, Treas. Regs. 1.401(a)(4)-13(d)(4) through 1.401(a)(4)13(d)(7) provide that if the plan provides for a minimum benefit adjustment (if applicable) and provides benefits after the latest fresh-start date that are meaningful with respect to benefits provided during plan years beginning before the freshstart date, the frozen accrued benefit of participants in the fresh-start group may be increased to the extent permitted by the methods provided in Treas. Reg. 1.401(a)(4)-13(d)(8), and that such post-fresh-start date increases to the participants' frozen accrued benefits will be disregarded in determining whether a plan meets one of the safe harbors under Treas. Reg. 1.401(a)(4)-3(b). This LRM #25 provision
24 | Defined Benefit Plan LRM Package 06/2026
is optional.)
Sample Plan Language:
Get a plain-English answer with a citation back to this text.
Ask AI about this code