[Code of Federal Regulations]
[Title 29, Volume 9]
[Revised as of July 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 29CFR4041.8]

[Page 740-741]
 
                             TITLE 29--LABOR
 
                          GUARANTY CORPORATION
 
PART 4041--TERMINATION OF SINGLE-EMPLOYER PLANS--Table of Contents
 
                      Subpart A--General Provisions
 
Sec. 4041.8  Post-termination amendments.

    (a) Plan benefits. A participant's or beneficiary's plan benefits 
are determined under the plan's provisions in effect on the plan's 
termination date. Notwithstanding the preceding sentence, an amendment 
that is adopted after the plan's termination date is taken into account 
with respect to a participant's or beneficiary's plan benefits to the 
extent the amendment--
    (1) Does not decrease the value of the participant's or 
beneficiary's plan benefits under the plan's provisions in effect on the 
termination date; and
    (2) Does not eliminate or restrict any form of benefit available to 
the participant or beneficiary on the plan's termination date.

[[Page 741]]

    (b) Residual assets. In a plan in which participants or 
beneficiaries will receive some or all of the plan's residual assets 
based on an allocation formula, the amount of the plan's residual assets 
and each participant's or beneficiary's share thereof is determined 
under the plan's provisions in effect on the plan's termination date. 
Notwithstanding the preceding sentence, an amendment adopted after the 
plan's termination date is taken into account with respect to a 
participant's or beneficiary's allocation of residual assets to the 
extent the amendment does not decrease the value of the participant's or 
beneficiary's allocation of residual assets under the plan's provisions 
in effect on the termination date.
    (c) Permitted decreases. For purposes of this section, an amendment 
shall not be treated as decreasing the value of a participant's or 
beneficiary's plan benefits or allocation of residual assets to the 
extent--
    (1) The decrease is necessary to meet a qualification requirement 
under section 401 of the Code;
    (2) The participant's or beneficiary's allocation of residual assets 
is paid in the form of an increase in the participant's or beneficiary's 
plan benefits; or
    (3) The decrease is offset by assets that would otherwise revert to 
the contributing sponsor or by additional contributions.
    (d) Distress terminations. In the case of a distress termination, a 
participant's or beneficiary's benefit liabilities are determined as of 
the termination date in the same manner as plan benefits under this 
section.