(1) For purposes of this rule, all defined benefit plans of the employer, whether or not terminated, are to be treated as a single defined benefit plan.

(2) For purposes of applying the limits under Internal Revenue Code (IRC) section 415(b), in no event shall a member's annual benefit payable under the Teachers' Retirement System in any limitation year be greater than the limit applicable at the annuity starting date, as increased in subsequent years pursuant to IRC section 415(d) and the regulations thereunder.

(3) If the form of benefit is not a straight life or a qualified joint and survivor annuity, then (2) is applied by either reducing:

(a) the limit in IRC section 415(b) applicable at the annuity starting date; or

(b) adjusting the form of benefit to an actuarially equivalent straight life annuity benefit determined using the assumptions required by the Treasury Regulation under IRC section 415, and the applicable mortality table described in Treasury Regulations section 1.417(e)-1(d)(2) (the mortality table specified in Revenue Ruling 2001-62).