Page:United States Statutes at Large Volume 120.djvu/855

 120 STAT. 824

by a person to whom notice was given under subparagraph (A). ‘‘(7) RESTRICTION ON PLAN AMENDMENTS.— ‘‘(A) IN GENERAL.—No amendment of a plan which increases the liabilities of the plan by reason of any increase in benefits, any change in the accrual of benefits, or any change in the rate at which benefits become nonforfeitable under the plan shall be adopted if a waiver under this subsection or an extension of time under section 431(d) is in effect with respect to the plan, or if a plan amendment described in subsection (d)(2) has been made at any time in the preceding 12 months (24 months in the case of a multiemployer plan). If a plan is amended in violation of the preceding sentence, any such waiver, or extension of time, shall not apply to any plan year ending on or after the date on which such amendment is adopted. ‘‘(B) EXCEPTION.—Subparagraph (A) shall not apply to any plan amendment which— ‘‘(i) the Secretary determines to be reasonable and which provides for only de minimis increases in the liabilities of the plan, ‘‘(ii) only repeals an amendment described in subsection (d)(2), or ‘‘(iii) is required as a condition of qualification under part I of subchapter D, of chapter 1. ‘‘(d) MISCELLANEOUS RULES.— ‘‘(1) CHANGE IN METHOD OR YEAR.—If the funding method, the valuation date, or a plan year for a plan is changed, the change shall take effect only if approved by the Secretary. ‘‘(2) CERTAIN RETROACTIVE PLAN AMENDMENTS.—For purposes of this section, any amendment applying to a plan year which— ‘‘(A) is adopted after the close of such plan year but 1⁄2 months after the close of the plan year no later than 2 (or, in the case of a multiemployer plan, no later than 2 years after the close of such plan year), ‘‘(B) does not reduce the accrued benefit of any participant determined as of the beginning of the first plan year to which the amendment applies, and ‘‘(C) does not reduce the accrued benefit of any participant determined as of the time of adoption except to the extent required by the circumstances, shall, at the election of the plan administrator, be deemed to have been made on the first day of such plan year. No amendment described in this paragraph which reduces the accrued benefits of any participant shall take effect unless the plan administrator files a notice with the Secretary notifying him of such amendment and the Secretary has approved such amendment, or within 90 days after the date on which such notice was filed, failed to disapprove such amendment. No amendment described in this subsection shall be approved by the Secretary unless the Secretary determines that such amendment is necessary because of a temporary substantial business hardship (as determined under subsection (c)(2)) or a substantial business hardship (as so determined) in the case of a multiemployer plan and that a waiver under subsection

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