grandfather clause

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grandfather clause,

provision in constitutions (adopted 1895–1910) of seven post–Reconstruction Southern states that exempted those persons who had been eligible to vote on Jan. 1, 1867, and their descendants from rigid economic and literacy requirements for voting. Since African Americans had not yet been enfranchised on that date, the provision effectively barred them from the polls while granting voting rights to poor and illiterate whites. Such provisions were ruled unconstitutional by the Supreme Court in 1915. The term grandfather clause is now applied to any kind of legal exemption based on prior status.
References in periodicals archive ?
regulations implementing ACA's grandfather rule establish narrow
Compensation not protected by the Grandfather Rule generally will be subject to the Compensation Cap, unless it is paid solely under a shareholder-approved arrangement on account of the attainment of one or more performance goals applied to an individual executive, a business unit, or the corporation as a whole.
The grandfather rule is also subject to a required quarterly review of book value.
The $150,000 ($750,000 for lump-sum distributions) threshold applicable when the grandfather rule is not elected remains unchanged; and
But in 2010, the company said the Office of The President of the Philippines had presented a new interpretation to the Grandfather Rule of foreign real property ownership laws.
Of real potential consequence from an international perspective, a pending technical correction would clarify that the grandfather rule does not apply to the section 409A funding requirements, thereby effectively requiring offshore trusts to be "brought back" (physically or by taxation) as of January 1, 2005.
An individual who, as of August 1, 1986, had accrued benefits under qualified plans with a present value of at least $562,500 could elect this grandfather rule.
The proposal would be effective for transfers to trusts after 2000; a grandfather rule would apply to trusts in existence on the date of enactment.