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Multiemployer Pension Plans: The Section 415 Benefit Limits (CRS Report for Congress)

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Release Date Oct. 12, 2001
Report Number RS20393
Report Type Report
Authors Celinda Franco, Domestic Social Policy Division
Source Agency Congressional Research Service
Summary:

Section 415(b) of the Internal Revenue Code sets limits on the maximum dollar benefit that can be paid from a tax-qualified pension plan. It also sets a limit on the percentage of a participant's salary that can be replaced by pension benefits. In the 106th Congress, legislation has been introduced to exempt multiemployer plans from the 415(b) limit of 100 percent of the average compensation of an individual's highest consecutive 3 years. The Administration's FY2000 budget request includes a proposal to exempt multiemployer plans from this limit.