[Code of Federal Regulations]
[Title 29, Volume 9]
[Revised as of July 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 29CFR4011.4]

[Page 763-764]
 
                             TITLE 29--LABOR
 
            CHAPTER XL--PENSION BENEFIT GUARANTY CORPORATION
 
PART 4011_DISCLOSURE TO PARTICIPANTS--Table of Contents
 
Sec. 4011.4  Small plan rules.

    (a) 1995 plan year exemption. A plan that is exempt from the 
requirements of section 302(d) of ERISA for the 1994 or 1995 plan year 
by reason of section 302(d)(6)(A) is exempt from the Participant Notice 
requirement for the 1995 plan year.
    (b) Small Plan DRC Exception Test. In determining whether the 
Participant Notice requirement applies for a plan year beginning after 
1995, the plan administrator of a plan that is exempt from the 
requirements of section 302(d) of ERISA by reason of section 
302(d)(6)(A) for the plan year being tested may use any one or more of 
the following rules in determining whether the plan meets the DRC 
Exception Test for that plan year:
    (1) Use of Schedule B data. For any plan year for which the plan is 
exempt from the requirements of section 302(d) of ERISA by reason of 
section 302(d)(6)(A), provided both of the following adjustments are 
made--
    (i) The market value of the plan's assets as of the beginning of the 
plan year (as required to be reported on Form 5500, Schedule B) may be 
substituted for the actuarial value of the plan's assets as of the 
valuation date; and
    (ii) The plan's current liability for all participants' total 
benefits as of the beginning of the plan year (as required to be 
reported on Form 5500, Schedule B) may be substituted for the plan's 
current liability as of the valuation date.
    (2) Pre-1995 plan year 90 percent test. A plan that is exempt from 
the requirements of section 302(d) of ERISA for a pre-1995 plan year by 
reason of section 302(d)(6)(A) satisfies the requirements of section 
302(d)(9)(D)(i) for that pre-1995 plan year if the ratio of its assets 
to its current liability for that plan year is at least 90 percent. For 
this purpose, the plan's assets are valued without subtracting any 
credit balance under section 302(b) of ERISA, and its current liability 
is determined using the highest interest rate allowable for the plan 
year under section 302(d)(7)(C).
    (3) Interest rate adjustment. If the interest rate used to calculate 
current liability for a plan year is less than the highest rate 
allowable for the plan year

[[Page 764]]

under section 302(d)(7)(C) of ERISA, the current liability may be 
reduced by one percent for each tenth of a percentage point by which the 
highest rate exceeds the rate so used.