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 ?
Pharma manufacturers must maintain records which can prove items were packaged prior to Nov 27, 2018 in order for those products to be "grandfathered."
"Finally" officials say, "commenters expressed concern that the provision terminating grandfather status upon any change in issuer gives issuers undue and unfair leverage in negotiating the price of coverage renewals with the sponsors of grandfathered health plans, and that this interferes with the health care cost containment that tends to result from price competition."
"Grandfathered status is very limiting," Abbott adds.
According to the DHHS fact sheet about keeping the plan you have, between 36 percent and 66 percent of large employers will still be grandfathered in 2013, a year before many of required plan changes--including the essential benefits package--go into effect.
Employers and other plan sponsors must weigh the design and operation changes required for the grandfathered health plan exemption against the cost of limited flexibility.
NSBA and other stakeholders have largely been interested in the degree of flexibility that the grandfathered health plan rules would permit for employers to make some changes to the plans in the years to come without losing their grandfathered health plan status.
Finally, the preamble states that the proposed regulations are meant to clarify that the transfer of property pursuant to the exercise, release or lapse of a GPA created in a grandfathered GSTT-exempt trust is not a "transfer under the trust" but a transfer by the person holding the power at the time the exercise, release or lapse becomes effective.
Also, cash balance accounts are grandfathered for all Nabisco participants by converting them into lump-sum credits for prior service under the Pension Equity Plan.
Often, the trustee of a grandfathered trust is hesitant to make minor or administrative changes to the trust, for fear that such modification may cause the trust to lose its grandfathered status.
The Labor department seems to be sending one type of written PPACA audit notice to plans that claim "grandfathered" status, a second type to non-grandfathered plans, and a third type to both grandfathered and non-grandfathered plans.
Therefore, the ITFA grandfathered state laws that were in effect and legally enforceable prior to that date.