Page:United States Statutes at Large Volume 115 Part 1.djvu/162

 115 STAT. 140 PUBLIC LAW 107-16-JUNE 7, 2001 "(h)(1) An applicable pension plan may not be amended so as to provide for a significant reduction in the rate of future benefit accrual unless the plan administrator provides the notice described in paragraph (2) to each applicable individual (and to each employee organization representing applicable individuals). "(2) The notice required by paragraph (1) shall be written in a manner calculated to be understood by the average plan participant and shall provide sufficient information (as determined in accordance with regulations prescribed by the Secretary of the Treasury) to allow applicable individuals to understand the effect of the plan amendment. The Secretary of the Treasury may provide a simplified form of notice for, or exempt from any notice requirement, a plan— "(A) which has fewer than 100 participants who have accrued a benefit under the plan, or "(B) which offers participants the option to choose between the new benefit formula and the old benefit formula. "(3) Except as provided in regulations prescribed by the Secretary of the Treasury, the notice required by paragraph (1) shall be provided within a reasonable time before the effective date of the plan amendment. "(4) Any notice under paragraph (1) may be provided to a person designated, in writing, by the person to which it would otherwise be provided. "(5) A plan shall not be treated as failing to meet the requirements of paragraph (1) merely because notice is provided before the adoption of the plan amendment if no material modification of the amendment occurs before the amendment is adopted. "(6)(A) In the case of any egregious failure to meet any requirement of this subsection with respect to any plan amendment, the provisions of the applicable pension plan shall be applied as if such plan amendment entitled all applicable individuals to the greater of— "(i) the benefits to which they would have been entitled without regard to such amendment, or "(ii) the benefits under the plan with regard to such amendment. "(B) For purposes of subparagraph (A), there is an egregious failure to meet the requirements of this subsection if such failure is within the control of the plan sponsor and is— "(i) an intentional failure (including any failure to promptly provide the required notice or information after the plan administrator discovers an unintentional failure to meet the requirements of this subsection), "(ii) a failure to provide most of the individuals with most of the information they are entitled to receive under this subsection, or "(iii) a failure which is determined to be egregious under regulations prescribed by the Secretary of the Treasury. "(7) The Secretary of the Treasury may by regulations allow any notice under this subsection to be provided by using new technologies. "(8) For purposes of this subsection— "(A) The term 'applicable individual' means, with respect to any plan amendment— "(i) each participant in the plan; and

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