29 C.F.R. § 4022.24

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Benefit increases.

eCFR amendment effective 2018-10-03 · superseded Nov 2, 2018 · last amended by 79 FR 70095, Nov. 25, 2014

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Link to an amendment published at 83 FR 49803, Oct. 3, 2018.

(a) Scope. This section applies:

(1) To all benefit increases, as defined in § 4022.2, payable with respect to a participant other than a substantial owner, which have been in effect for less than five years preceding the termination date; and

(2) To all benefit increases payable with respect to a substantial owner, which have been in effect for less than 30 years preceding the termination date.

(b) General rule. Benefit increases described in paragraph (a) of this section shall be guaranteed only to the extent provided in § 4022.25 with respect to a participant other than a substantial owner and in § 4022.26 with respect to a participant who is a substantial owner.

(c) Computation of guaranteeable benefit increases. Except as provided in paragraph (d) of this section pertaining to multiple benefit increases, the amount of a guaranteeable benefit increase shall be the amount, if any, by which the monthly benefit calculated pursuant to paragraph (c)(1) of this section (the monthly benefit provided under the terms of the plan as of the termination date, as limited by § 4022.22) exceeds the monthly benefit calculated pursuant to paragraph (c)(4) of this section (the monthly benefit which would have been payable on the termination date if the benefit provided subsequent to the increase were equivalent, as of the date of the increase, to the benefit provided prior to the increase).

(1) Determine the amount of the monthly benefit payable on the termination date (or, in the case of a deferred benefit, the monthly benefit which will become payable thereafter) under the terms of the plan subsequent to the increase, using service credited to the participant as of the termination date, that is guaranteeable pursuant to § 4022.22;

(2) Determine, as of the date of the benefit increase, in accordance with the provisions of § 4022.23, the factors which would be used to calculate the monthly maximum benefit guaranteeable (i) under the terms of the plan prior to the increase and (ii) under the terms of the plan subsequent to the increase. However, when the benefit referred to in paragraph (c)(2)(ii) of this section is a joint and survivor benefit deferred as of the termination date and there is no beneficiary on that date, the factors computed in paragraph (c)(2)(ii) of this section shall be determined as if the benefit were payable only to the participant. Each set of factors determined under this paragraph shall be stated in the manner set forth in § 4022.23(b)(1);

(3) Multiply the monthly benefit which would have been payable (or, in the case of a deferred benefit, would have become payable) under the terms of the plan prior to the increase based on service credited to the participant as of the termination date by a fraction, the numerator of which is the product of the factors computed pursuant to paragraph (c)(2)(ii) of this section and the denominator of which is the product of the factors computed pursuant to paragraph (c)(2)(i) of this section.

(4) Calculate the amount of the monthly benefit which would be payable on the termination date if the monthly benefit computed in paragraph (c)(3) of this section had been payable commencing on the date of the benefit increase (or, in the case of a deferred benefit, would have become payable thereafter). In the case of a benefit which does not become payable until subsequent to the termination date, the amount of the monthly benefit determined pursuant to this paragraph is the same as the amount of the monthly benefit calculated pursuant to paragraph (c)(3) of this section.

(d) Multiple benefit increases.

(1) Where there has been more than one benefit increase described in paragraph (a) of this section, the amounts of guaranteeable benefit increases shall be calculated beginning with the earliest increase, and each such amount (except for the amount resulting from the final benefit increase) shall be multiplied by a fraction, the numerator of which is the product of the factors, stated in the manner set forth in § 4022.23(b)(1), used to calculate the monthly maximum guaranteeable benefit under § 4022.22 and the denominator of which is the product of the factors used in the calculation under paragraph (c)(2)(i) of this section.

(2) Each benefit increase shall be treated separately for the purposes of § 4022.25, except as otherwise provided in paragraph (d) of that section, and for the purposes of § 4022.26, as appropriate.

(e) Except as provided in § 4022.27(c), for the purposes of §§ 4022.22 through 4022.28, a benefit increase is deemed to be in effect commencing on the later of its adoption date or its effective date.

(f) PPA 2006 bankruptcy termination. In a PPA 2006 bankruptcy termination, except as provided in the next sentence, “bankruptcy filing date” is substituted for “termination date” each place that “termination date” appears in paragraphs (a) and (c) of this section. In any case in which an event (such as the death of a participant or beneficiary who was alive on the bankruptcy filing date) that affects who is receiving or will receive a benefit from PBGC has occurred on or before the termination date, PBGC will compute the benefit based on the form of benefit that was being paid (or was payable) and the person who was receiving or was entitled to receive the benefit from PBGC as of the termination date, consistent with § 4022.23(g).

(g) Rollover amounts. Any portion of a benefit derived from mandatory employee contributions resulting from rollover amounts (as determined under § 4044.12 (c)(4)(i) of this chapter) is disregarded in applying the provisions of §§ 4022.24 through 4022.26. However, any portion of a benefit derived from employer contributions resulting from rollover amounts (as determined under § 4044.12(c)(4)(ii) of this chapter) is combined with any other benefit under the plan in applying the provisions of §§ 4022.24 through 4022.26. In such case, the benefit increase is deemed to be in effect on the date the rollover amounts are received by the plan.

Source credit, amendments & notes

[61 FR 34028, July 1, 1996; 61 FR 36626, July 12, 1996, as amended at 62 FR 67728, Dec. 30, 1997; 76 FR 34603, June 14, 2011; 79 FR 25672, May 6, 2014; 79 FR 70095, Nov. 25, 2014]

29 C.F.R. § 4022.24 — Benefit increases. · eCFR amendment effective 2018-10-03 · https://pensionresource.website/EAMain?content=EAMain.Law&id=cfr29-4022.24&asof=2018-10-03 · printed Oct 16, 2026

Implements

ERISA § 4022 (29 U.S.C. § 1322) Single-employer plan benefits guaranteed

Cited by (code & regs)

29 C.F.R. § 4022.25 Five-year phase-in of benefit guarantee.

Guidance addressing this section

PBGC

Final Rules

79 FR 70090 Nov 25, 2014 — Title IV Treatment of Rollovers From Defined Contribution Plans to Defined Benefit Plans

Also cited in 7 other documents

PBGC

Final Rules

83 FR 49799 Oct 3, 2018 — Owner-Participant Changes to Guaranteed Benefits and Asset Allocation
79 FR 25667 May 6, 2014 — Benefits Payable in Terminated Single-Employer Plans; Limitations on Guaranteed Benefits; Shutdown and Similar Benefits (e)
76 FR 34590 Jun 14, 2011 — Bankruptcy Filing Date Treated as Plan Termination Date for Certain Purposes; Guaranteed Benefits; Allocation of Plan Assets; Pension Protection Act of 2006

Proposed Rules

83 FR 9716Proposed Mar 7, 2018 — Owner-Participant Changes to Guaranteed Benefits and Asset Allocation Comments due May 7, 2018
79 FR 18483Proposed Apr 2, 2014 — Title IV Treatment of Rollovers From Defined Contribution Plans To Defined Benefit Plans Comments due Jun 2, 2014
76 FR 67105Proposed Oct 31, 2011 — Cash Balance Plans; Benefit Determinations and Plan Valuations for Statutory Hybrid Plans; Pension Protection Act of 2006 Comments due Dec 30, 2011
76 FR 13304Proposed Mar 11, 2011 — Benefits Payable in Terminated Single-Employer Plans; Limitations on Guaranteed Benefits Comments due May 10, 2011 (e)

No court rulings in the library cite this provision yet.

No private letter rulings in the library cite this provision yet.

Each row is a version of the text as published by the official source. Code dates are the edition/release point that first reflected the change; regulation dates are eCFR effective dates. The library checks the official sources automatically, so new versions appear here on their own; “run” opens the sync that recorded a version.

Effective	Through	Source	Amended by
Jul 1, 1997	Jun 30, 1998	CFR 1997 annual edition (revised as of 1997-07-01) run 127	61 FR 36626, July 12, 1996	View
Jul 1, 1998	Jun 30, 2011	CFR 2010 annual edition (revised as of 2010-07-01) run 127	62 FR 67728, Dec. 30, 1997	View · Redline (sign in)
Jul 1, 2011	Jun 30, 2012	CFR 2011 annual edition (revised as of 2011-07-01) run 127	62 FR 67728, Dec. 30, 1997	View · Redline (sign in)
Jul 1, 2012	Jun 30, 2014	CFR 2013 annual edition (revised as of 2013-07-01) run 127	76 FR 34603, June 14, 2011	View · Redline (sign in)
Jul 1, 2014	Jun 30, 2015	CFR 2014 annual edition (revised as of 2014-07-01) run 127	79 FR 25672, May 6, 2014	View · Redline (sign in)
Jul 1, 2015	Oct 2, 2018	eCFR amendment effective 2017-01-01 run 7	79 FR 70095, Nov. 25, 2014	View · Redline (sign in)
Oct 3, 2018	Nov 1, 2018	eCFR amendment effective 2018-10-03 run 7	79 FR 70095, Nov. 25, 2014	View · Redline (sign in)
Nov 2, 2018	current	eCFR amendment effective 2018-11-02 run 2	83 FR 49803, Oct. 3, 2018	View · Redline (sign in)

Provision-level history (blame)

29 C.F.R. § 4022.24

On this page

Implements

Cited by (code & regs)

Guidance addressing this section

PBGC

PBGC