(a) Federal limits not to be exceeded. Notwithstanding any other provision of this article to the contrary, no benefit shall be payable under any of the plans if such benefit would cause the plan, or any other plan maintained by the employer, to violate the limitations of § 415 of the Internal Revenue Code and the regulations thereunder. For purposes of applying the limits under § 415 of the Internal Revenue Code, the annual increase of the § 415 limitations applies to a participant for increases that are effective after the participant's severance from employment. The limitation year shall be the calendar year. Section 415 of the Internal Revenue Code and the final Treasury Regulations are specifically incorporated by reference effective for limitation years beginning on or after July 1, 2007, except where an earlier effective date is otherwise provided in the final Treasury Regulations.
(b) Reduction of benefits. If the annual additions, within the meaning of § 415 of the Internal Revenue Code, are exceeded for any participant, then the plan may only correct such excess in accordance with the Employee Plans Compliance Resolution System (EPCRS) as set forth in Revenue Procedure 2006-27 or any superseding guidance, including, but not limited to, the preamble of the final § 415 Treasury Regulations.
(c) Recovery of benefits paid in excess of limitations. In the event that the limitations of § 415 of the Internal Revenue Code are exceeded, the Personnel Officer may take any action necessary which is allowed under § 415 of the Internal Revenue Code and the regulations thereunder to seek recovery of benefits paid in excess of the limitations.
(1985 Code, Art. 7, § 1-403) (Bill No. 90-01; Bill No. 92-08; Bill No. 2-14)