24 CAR § 1-211. Compliance with benefits limits imposed by Section 415 of the Internal Revenue Code

The following guidelines for complying with qualified plan benefit limitations imposed by I.R.C. § 415 shall be followed in accordance with Acts 1995, No. 739: (1) Total employer financed straight life annuity payments to any retired member in any calendar year shall not exceed the dollar limit specified in I.R.C. § 415; (2) In any calendar year in which the total straight life annuity payments otherwise payable would exceed the amount permitted under I.R.C. § 415, the actual amount paid shall be reduced by such dollar difference; and (3) A retiree whose benefits are reduced in accordance with I.R.C. § 415, limitations in any calendar year will be retested in subsequent years in accordance with the following objectives: (A) Assurance that the Arkansas Public Employees’ Retirement System will remain in compliance with I.R.C. § 415; and (B) The smallest acceptable cumulative adjustments are made to the benefits paid to any retired member.