grandfather clause

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Related to Grandfather rule: grandfather clause, Grandfathered in

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 ?
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.
A more liberal grandfather rule applies for reporting purposes (pre-2005 actual deferrals, whether or not vested, and regardless of post-October 3, 2004, material modifications) than for section 409A in general, per Q&A-28 of Notice 2005-1.
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.
This grandfather rule permits partnership status for entities that meet the following requirements --
1, 1986 could have elected the grandfather rule, which exempted future distributions from the 15% excise tax if they were a recovery of benefits accrued as of Aug.