§1.436-1   Limits on benefits and benefit accruals under single employer defined benefit plans.

(a) General rules.

(1) Qualification requirement.

(2) Organization of the regulation.

(3) Special rules for certain plans.

(4) Treatment of plan as of close of prohibited or cessation period.

(5) Deemed election to reduce funding balances.

(b) Limitation on shutdown benefits and other unpredictable contingent event benefits.

(1) In general.

(2) Exemption if section 436 contribution is made.

(3) Rules of application.

(4) Prior unpredictable contingent event.

(c) Limitations on plan amendments increasing liability for benefits.

(1) In general.

(2) Exemption if section 436 contribution is made.

(3) Rules of application regarding pre-existing plan provisions.

(4) Exceptions.

(5) Rule for determining when an amendment takes effect.

(6) Treatment of mergers, consolidations, and transfers of plan assets into a plan. [Reserved]

(d) Limitations on prohibited payments.

(1) AFTAP less than 60 percent.

(2) Bankruptcy.

(3) Limited payment if AFTAP at least 60 percent but less than 80 percent.

(4) Exception for cessation of benefit accruals.

(5) Right to delay commencement.

(6) Plan alternative for special optional forms.

(7) Exception for distributions permitted without consent of the participant under section 411(a)(11).

(e) Limitation on benefit accruals for plans with severe funding shortfalls.

(1) In general.

(2) Exemption if section 436 contribution is made.

(3) Special rule under section 203 of the Worker, Retiree, and Employer Recovery Act of 2008. [Reserved]

(f) Methods to avoid or terminate benefit limitations.

(1) In general.

(2) Current year contributions to avoid or terminate benefit limitations.

(3) Security to increase adjusted funding target attainment percentage.

(4) Examples.

(g) Rules of operation for periods prior to and after certification.

(1) In general.

(2) Periods prior to certification during which a presumption applies.

(3) Periods prior to certification during which no presumption applies.

(4) Modification of the presumed AFTAP.

(5) Periods after certification of AFTAP.

(6) Examples.

(h) Presumed underfunding for purposes of benefit limitations.

(1) Presumption of continued underfunding.

(2) Presumption of underfunding beginning on first day of 4th month for certain underfunded plans.

(3) Presumption of underfunding beginning on first day of 10th month.

(4) Certification of AFTAP.

(5) Examples of rules of paragraphs (h)(1), (h)(2), and (h)(3) of this section.

(6) Examples of application of paragraph (h)(4) of this section.

(i) [Reserved]

(j) Definitions.

(1) Adjusted funding target attainment percentage.

(2) Annuity starting date.

(3) First effective plan year.

(4) Funding target.

(5) Prior year adjusted funding target attainment percentage.

(6) Prohibited payment.

(7) Section 436 contributions.

(8) Section 436 measurement date.

(9) Unpredictable contingent event.

(10) Examples.

(k) Effective/applicability dates.

(1) Statutory effective date.

(2) Collectively bargained plan exception.

(3) Effective date/applicability date of regulations.