(a) Notwithstanding the foregoing and subject to the exceptions and adjustments below, effective for limitation years ending after December 31, 2001, the annual benefit otherwise payable to a member under the plan at any time shall not exceed the maximum annual benefit, and if the benefit a member would otherwise accrue in a limitation year would produce an annual benefit in excess of the maximum annual benefit, the benefit shall be limited, or the rate of accrual reduced, to a benefit that does not exceed the maximum annual benefit. The maximum annual benefit payable to a member under the plan in any limitation year shall equal the defined benefit dollar limitation. The defined benefit dollar limitation is one hundred sixty thousand dollars ($160,000), as adjusted, effective January 1 of each year, under § 415(d), Internal Revenue Code, in such manner as the secretary shall prescribe, and payable in the form of a straight life annuity. Such dollar limitation as adjusted under § 415(d), Internal Revenue Code, shall apply to limitation years ending with or within the calendar year for which the adjustment applies.

(b) For purposes of applying the limitations of § 415, Internal Revenue Code, the limitation year shall be the calendar year. All qualified plans maintained by the county shall use the same limitation year. If the limitation year is amended to a different 12 consecutive month period, the new limitation year shall begin on a date within the limitation year in which the amendment is made.

(c) Notwithstanding anything in this subpart to the contrary, if the plan was in existence on May 6, 1986, and had complied at all times with the requirements of § 415, Internal Revenue Code, the maximum annual benefit for any individual who is a member as of the first day of the limitation year beginning after December 31, 1986, shall not be less than the current accrued benefit. Current accrued benefit shall mean a member's accrued benefit under the plan, determined as if the member had separated from service as of the close of the last limitation year beginning before January 1, 1987, when expressed as an annual benefit within the meaning of § 415(b)(2), Internal Revenue Code. In determining the amount of a member’s current accrued benefit, the following shall be disregarded: Any change in the terms and conditions of the plan after May 5, 1986; and any cost-of-living adjustment occurring after May 5, 1986.

(d)(1) For the purpose of this subpart, all qualified defined benefit plans, whether terminated or not, ever maintained by the county shall be treated as one defined benefit plan.

(2) If a member is, or has ever been, a member in more than one defined benefit plan maintained by the county, the sum of the member’s annual benefits from all such plans may not exceed the maximum annual benefit of this section. Where the member’s county provided benefits under all defined benefit plans ever maintained by the county, determined as of the same age, would exceed the maximum annual benefit applicable at that age, the county shall reduce the rate of accrual in the plan to the extent necessary so that the total annual benefit payable at any time under such plans shall not exceed the maximum annual benefit.

(e) For the purpose of this subpart, if the county is a member of a controlled group of corporations, trades, or businesses under common control, as defined by § 1563(a) or § 414(b) and (c) as modified by § 415(h), Internal Revenue Code, or is a member of an affiliated service group, as defined by § 414(m), Internal Revenue Code, all employees of such employers shall be considered to be employed by a single employer.

(f) Notwithstanding anything contained in this subpart to the contrary, the limitations, adjustments, and other requirements prescribed in this subpart shall at all times comply with § 415, Internal Revenue Code, and the regulations thereunder.

(g) Effect on members of Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) increase in § 415(b), Internal Revenue Code limitations. Effective for limitation years ending after December 31, 2001, benefit increases resulting from the increase in the limitations of § 415(b), Internal Revenue Code, on account of the EGTRRA shall be provided to all current and former members, with benefits limited by § 415(b), Internal Revenue Code, who have an accrued benefit under the plan immediately prior to the effective date of this subpart, other than an accrued benefit resulting from a benefit increase solely as a result of the increases in limitations under § 415(b), Internal Revenue Code.