Grandfather clause

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Grandfather clause

A provision included in a new rule or regulation that exempts a business that is already conducting business in the area addressed by the regulation from penalty or restriction.

Grandfather Clause

A clause in a new law, regulation, or anything else that exempts certain persons or businesses from abiding by it. For example, suppose a country passes a law stating that it is illegal to own a cat. A grandfather clause would allow persons who already own cats to continue to keep them, but would prevent people who do not own cats from buying them. Grandfather clauses are controversial, but they are also relatively common.
References in periodicals archive ?
The Regulations provide that if any of the following changes are made to a group health plan, the plan will lose its grandfathered status:
Some organizations representing employers have submitted comment letters requesting changes in the interim regulations regarding grandfathered status.
Two final notes: 1) Employers who made a plan change between March 23 and June 14 can return to their previous plan and remain grandfathered.
Details on the routine changes insurers and employers can make without losing their grandfathered status and the projected impact on large and small employer plans are highlighted in the administration's Fact Sheet: Keeping the Health Plan You Have: The Affordable Care Act and "Grandfathered" Health Plans (www.
Additionally, grandfathered plans are allowed to add new benefits or beneficiaries, make modest adjustments to existing benefits, voluntarily adopt new consumer protections, or make changes to comply with state or other federal laws.
If a change to a trust is desired, taxpayers want to be certain that the anticipated revision will not taint the trust's grandfathered status.
The Plan provides generally that Henkel will cease to be a grandfathered stockholder if it owns more than 35% of the Company's outstanding Common Stock and any other grandfathered stockholder will cease to be exempt from triggering the rights plan if it acquires any additional shares of Common Stock.
The repeal of the 15% excess distributions tax alleviates the need to be concerned about excess distributions or to keep track of unrecovered grandfathered amounts.
Can the pre-1986, grandfathered plan be used to compensate for the Sec.
Example 3: The facts are the same as in Example 2 except that, as of A's date of death, A received $90,000 in distributions that were treated as a return on A's grandfathered amount.
If the installation of additional controls is required for a grandfathered facility to meet an emission limit, the permit shall specify an implementation schedule for such additional controls.
1035 exchange jeopardizes any grandfathered tax benefits for insurance contracts.