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IRS Clears Way for Cash Balance Plans to Adopt New Mortality Table
Deloitte & Touche Human Capital Advisory Services
Nov. 19, 2002
Excerpt: The change to the GAR mortality table is expected to result in a roughly 2 to 3 percent decrease in the annual annuity benefit for participants in cash balance plans. This ... led cash balance plan sponsors to question whether amending their plans to implement this change would violate the anticutback rule [IRC section 411(d)(6)] and/or trigger the ERISA section 204(h) notice requirements.
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