PLAN BENEFIT PROVISIONS

(Note to reviewer: All Standardized defined benefit plans must, by their terms, satisfy one of the design-based safe harbors in Reg. §§ Treas. Regs. 1.401(a)(4)-3(b)(3), 1.401(a)(4)3(b) (4), or 1.401(a)(4)-3(b)(5). All Nonstandardized Plans may provide plan language that automatically satisfies one of the design-based safe harbors in Treas. Regs. Reg. §§ 1.401(a)(4)-3(b)(3), 1.401(a)(4)-3(b)(4), or 1.401(a)(4)-3(b)(5), or provide a mechanism in the adoption agreement for the employer to select plan language that does. (See sections 5.15(2 12.02(4) or 5.169 .03(4) of Rev. Proc. 2017-41 2023-37.) LRM #26 provides sample benefit formulas that satisfy the design-based safe harbors of the regulations for plans that do not provide for permitted disparity. LRM #27 provides sample formulas that satisfy the design-based safe harbors of the regulations for plans that provide for permitted disparity.

A plan that changes its benefit formula or accrual method must, in order to satisfy the design-based safe harbors in the regulations, satisfy the fresh-start rules in Treas. Reg. § 1.401(a)(4)-13(c) with regard to such change. LRMs ## 23-25 provide sample plan language that satisfies these rules. All Standardized Plans must comply with LRMs ## 23-25; all other Nonstandardized Plans must provide these LRM provisions either automatically or by option.)

(Note to reviewer: No Code § IRC 401(a)(4) failsafe language is allowed. The plan must pass nondiscrimination testing based on Treas. Regs. Reg. §§ 1.401(a)(4)-1 through 1.401(a)(4)13.)