Unit credit plans.

(B) Unit credit plans. In the case of a unit credit plan described in 1.401(a)(4)-3(b)(3), if the 411(b)(1)(B) limit percentage is less than the nondisparate percentage, the 411(b)(1)(B) limit percentage must be substituted for the nondisparate percentage. For this purpose, the 411(b)(1)(B) limit percentage is 133 1/3 percent of the smallest base benefit percentage, or 133 1/3 percent of the smallest difference between the gross benefit percentage and the offset percentage, whichever is applicable, where the smallest base benefit percentage or difference is determined by reference to the benefit formula as applied to employees with no more years of service than the employee.

Source

26 CFR § 1.401(l)-3


Scoping language

None
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