Compensation Glossary

Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA)

Lowered limits on contributions and benefits for corporate plans. Allowed certain loans from plans to be treated as distributions. Reduced estate tax exclusion for retirement plan death benefits to maximum of $100,000. Repealed special Keogh plan and subchapter S restrictions. Added 'top-heavy' plan requirements. Stopped employers and health plans from forcing employees ages 65 to 69 to use Medicare rather than group health plan.