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e-CFR
Data is current as of May 23, 2011

Title 12:
Banks and Banking
PART 563—SAVINGS ASSOCIATIONS—OPERATIONS

Subpart B—Operation and Structure

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§ 563.47   Pension plans.

(a) General. No savings association or service corporation
thereof shall sponsor an employee pension plan which, because of
unreasonable costs or any other reason, could lead to material financial
loss or damage to the sponsor. For purposes of this section, an employee
pension plan is defined in section 3(2) of the Employee Retirement Income
Security Act of 1974, as amended. The prospective obligation or liability
of a plan sponsor to each plan participant shall be stated in or
determinable from the plan, and, for a defined benefit plan, shall also be
based upon an actuarial estimate of future experience under the plan.

(b) Funding. Actuarial cost methods permitted under the Employee
Retirement Income Security Act of 1974 and the Internal Revenue Code of
1954, as amended, shall be used to determine plan funding.

(c) Plan amendment. A plan may be amended to provide reasonable
annual cost-of-living increases to retired participants: Provided,
That

(1) Any such increase shall be for a period and amount determined by
the sponsor's board of directors, but in no event shall it exceed the
annual increase in the Consumer Price Index published by the Bureau of
Labor Statistics; and

(2) No increase shall be granted unless (i) anticipated charges to net
income for future periods have first been found by such board of directors
to be reasonable and are documented by appropriate resolution and
supporting analysis; and (ii) the increase will not reduce the
association's regulatory capital below its regulatory capital
requirement.

(d) Termination. The plan shall permit the sponsor's board of
directors and its successors to terminate such plan. Notice of intent to
terminate shall be filed with the OTS at least 60 days prior to the
proposed termination date.

(e) Records. Each savings association or service corporation
maintaining a plan not subject to recordkeeping and reporting requirements
of the Employee Retirement Income Security Act of 1974, and the Internal
Revenue Code of 1954, as amended, shall establish and maintain records
containing the following:

(1) Plan description;

(2) Schedule of participants and beneficiaries;

(3) Schedule of participants and beneficiaries' rights and
obligations;

(4) Plan's financial statements; and

(5) Except for defined contribution plans, an opinion signed by an
enrolled actuary (as defined by the Employee Retirement Income Security
Act of 1974) affirming that actuarial assumptions in the aggregate are
reasonable, take into account the plan's experience and expectations, and
represent the actuary's best estimate of the plan's projected
experiences.

[59 FR 66159, Dec. 23, 1994]

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