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24-10-620. Limitations on benefits.
Arkansas Code — all titles (historical 2020) · legal_authorities
24-10-620. Limitations on benefits.
(a)(1) Notwithstanding any language to the contrary under this chapter, benefits attributable to employer contributions and paid under the Arkansas Local Police and Fire Retirement System shall not exceed the limitations of the Internal Revenue Code of 1986, 26 U.S.C. § 415, as it existed on January 1, 2011, that are applicable to government retirement plans for employees of police and fire departments, including without limitation the dollar limitations in the Internal Revenue Code of 1986, 26 U.S.C. § 415(b)(1)(A), as it existed on January 1, 2011.
(2) If the dollar amount referenced in the Internal Revenue Code of 1986, 26 U.S.C. § 415(b)(1)(A), as it existed on January 1, 2011, is increased pursuant to regulations issued under that section, the increase shall be effective as of January 1 of the calendar year for which the regulations were effective.
(b) The annual benefits, as may be increased in subsequent years, that are paid to a retirant of the system shall not exceed the limitations under the Internal Revenue Code of 1986, 26 U.S.C. § 415(b), as it existed on January 1, 2011, applicable to the annuity effective date under that section.
(c) For purposes of determining compliance with the Internal Revenue Code of 1986, 26 U.S.C. § 415, as it existed on January 1, 2011, “compensation” is defined as set forth in United States Department of the Treasury Regulation, 26 C.F.R. § 1.415-2(d)(2), as it existed on January 1, 2011.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 24-10-620
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. A text match is a research starting point; applicability is not established.
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Stable record: arkansas_code:legal_authorities:24-10-620
Source file: gov.ar.code.title.24.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 886d5f0cf0ab8ead67b66a0a066a2e807c398f3a35c287d106adbe2e333195b1
Source location: content.xml paragraph 10797
Stored source content
24-10-620. Limitations on benefits.
(a)(1) Notwithstanding any language to the contrary under this chapter, benefits attributable to employer contributions and paid under the Arkansas Local Police and Fire Retirement System shall not exceed the limitations of the Internal Revenue Code of 1986, 26 U.S.C. § 415, as it existed on January 1, 2011, that are applicable to government retirement plans for employees of police and fire departments, including without limitation the dollar limitations in the Internal Revenue Code of 1986, 26 U.S.C. § 415(b)(1)(A), as it existed on January 1, 2011.
(2) If the dollar amount referenced in the Internal Revenue Code of 1986, 26 U.S.C. § 415(b)(1)(A), as it existed on January 1, 2011, is increased pursuant to regulations issued under that section, the increase shall be effective as of January 1 of the calendar year for which the regulations were effective.
(b) The annual benefits, as may be increased in subsequent years, that are paid to a retirant of the system shall not exceed the limitations under the Internal Revenue Code of 1986, 26 U.S.C. § 415(b), as it existed on January 1, 2011, applicable to the annuity effective date under that section.
(c) For purposes of determining compliance with the Internal Revenue Code of 1986, 26 U.S.C. § 415, as it existed on January 1, 2011, “compensation” is defined as set forth in United States Department of the Treasury Regulation, 26 C.F.R. § 1.415-2(d)(2), as it existed on January 1, 2011.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) General rule**
(1) **Trusts** — A trust which is a part of a pension, profitsharing, or stock bonus plan shall not constitute a qualified trust under section 401(a) if—
(A) in the case of a defined benefit plan, the plan provides for the payment of benefits with respect to a participant which exceed the limitation of subsection (b), or
(B) in the case of a defined contribution plan, contributions and other additions under the plan with respect to any participant for any taxable year exceed the limitation of subsection (c).
(2) **Section applies to certain annuities and accounts** — In the case of—
(A) an employee annuity plan described in section 403(a),
(B) an annuity contract described in section 403(b), or
(C) a simplified employee pension described in section 408(k),
such a contract, plan, or pension shall not be considered to be described in section 403(a), 403(b), or 408(k), as the case may be, unless it satisfies the requirements of subparagraph (A) or subparagraph (B) of paragraph (1), whichever is appropriate, and has not been disqualified under subsection (g). In the case of an annuity contract described in section 403(b), the preceding sentence shall apply only to the portion of the annuity contract which exceeds the limitation of subsection (b) or the limitation of subsection (c), whichever is appropriate.
**(b) Limitation for defined benefit plans**
(1) **In general** — Benefits with respect to a participant exceed the limitation of this subsection if, when expressed as an annual benefit (within the meaning of paragraph (2)), such annual benefit is greater than the lesser of—
(A) $160,000, or
(B) 100 percent of the participant’s average compensation for his high 3 years.
(2) **Annual benefit**
(A) *In general* — For purp
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 415
Stored review status: release_metadata_unconfirmed. The source passage cites 26 U.S.C. § 415. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
Page 1426
TITLE 26—INTERNAL REVENUE CODE
§ 415
graph if such arrangement allows employees
to make permissible withdrawals (as defined
in section 414(w)(2)).
(3) Minimum contribution percentage
(A) In general
An eligible automatic contribution ar-
rangement meets the requirements of this
paragraph if—
(i) the uniform percentage of compensa-
tion contributed by the participant under
such arrangement during the first year of
participation is not less than 3 percent and
not more than 10 percent (unless the par-
ticipant specifically elects not to have
such contributions made or to have such
contributions made at a different percent-
age), and
(ii) effective for the first day of each
plan year starting after each completed
year of participation under such arrange-
ment such uniform percentage is increased
by 1 percentage point (to at least 10 per-
cent, but not more than 15 percent) unless
the participant specifically elects not to
have such contributions made or to have
such contributions made at a different per-
centage.
(B) Initial reduced ceiling for certain plans
In the case of any eligible automatic con-
tribution arrangement (other than an ar-
rangement that meets the requirements of
paragraph (12) or (13) of section 401(k)), for
plan years ending before January 1, 2025,
subparagraph (A)(ii) shall be applied by sub-
stituting ‘‘10 percent’’ for ‘‘15 percent’’.
(4) Investment requirements
An eligible automatic contribution arrange-
ment meets the requirements of this para-
graph if amounts contributed pursuant to such
arrangement, and for which no investment is
elected by the participant, are invested in ac-
cordance with the requirements of section
2550.404c-5 of title 29, Code of Federal Regula-
tions (or any successor regulations).
(c) E
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 415
Stored review status: historical_2024_not_currentness_verified. The source passage cites 26 U.S.C. § 415. This identifies an authority to review, not proof of applicability.