For a pension or other retirement plan to be recognized as a qualified plan under U.S. law, it must meet the following general requirements:
• A written, legally binding arrangement must exist and must be communicated to the employees.
• The plan must be established with the intent that it he a permanent and continuing arrangement and must be for the exclusive benefit of employees or their beneficiaries.
• The plan must provide that a participant’s benefits under the plan may not be assigned or alienated except as required under a qualified domestic relations order.
• It must be impossible for the principal or income of the plan to be diverted from these benefits to any other purpose until all liabilities have been satisfied.
• The plan must stipulate when benefit payments will commence (and this time is subject to certain stipulated maximums) and provide for the minimum distribution requirements.
• If the participant is married, the plan must, under certain circumstances, provide for a joint and survivor or survivor annuity.
• The plan must benefit a broad class of employees and not discriminate in favor of officers, stockholders, or highly compensated employees.
• The plan must provide for limitations on compensation recognized for plan benefit determination purposes and on maximum benefits to be provided.
• The plan must meet certain, minimum requirements of participation and vesting.
• The plan must provide that, in the event of a plan merger. Each participant’s benefit under the resulting plan will be at least equal to the benefit to which he or she would have been entitled had the plan terminated prior to the merger.
• The plan must provide that benefits to a participant or beneficiary may not be decreased by reason of increases in Social Security benefits following the earlier of the termination of employment or the commencement of receipt of benefits under the plan.
• The plan must provide for a claims review procedure if the claim of a participant or beneficiary is disallowed.
