34. Definition of normal retirement benefit

239 | Defined Benefit Plan LRM Package 08/2020 06/2026

Statement of Requirement: Code §I RC 411(a)(9); Treas. Reg. § 1.411(a)-7(c)

Document Provision: _____

Sample Plan Language:

The normal retirement benefit of each participant shall not be less than the largest periodic benefit that would have been payable to the participant upon separation from service at or prior to normal retirement age under the plan exclusive of social security supplements, premiums on disability or term insurance, and the value of disability benefits not in excess of the normal retirement benefit. For purposes of comparing periodic benefits in the same form, commencing prior to and at normal retirement age, the greater benefit is determined by converting the benefit payable prior to normal retirement age into the same form of annuity benefit payable at normal retirement age and comparing the amount of such annuity payments. In the case of a top-heavy plan, the normal retirement benefit shall not be smaller than the minimum benefit to which the participant is entitled under section _______.

(Note to reviewer: The Provider should insert the section number of the plan that corresponds to LRM #70.)