Rev. Rul. 80-253

This revenue ruling provides guidance for making the actuarial adjustments required in applying the limitations on benefits provided by section 415(b)(1) of the Internal Revenue Code.

Section 415(b)(1) of the Code provides maximum dollar and percentage of compensation limitations on the benefits that may be provided by a defined benefit plan.

Section 415(b)(2) of the Code provides for actuarial equivalent adjustments in applying these limitations if benefits are in a form other than a straight life annuity or if plan benefits commence before age 55.

These actuarial equivalent adjustments must be made on the basis of reasonable actuarial assumptions.

For this purpose, adjustments made in accordance with the rules enunciated in Rev. Rul. 76-47, 1976-1 C.B. 109, or Rev. Rul. 71-446, 1971-2 C.B. 187, or the proposed revenue ruling published in Announcement 78-96, 1978-23 I.R.B. 42 are deemed to be made on the basis of reasonable actuarial assumptions.