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anticutback rule. It does not, however, expand the category of
persons who may accrue such benefits. Even after passage of the
REA, section 411(a)(7) still provides that the benefits protected
by the anticutback rule may be accrued only by employees. We
conclude that the “retirement-subsidy” provisions of section
411(d)(6)(B)(i) do not serve as a basis for disqualifying the
Plan.
The fact that the NPF COLA did not come into effect until
1991 presents the question of whether, in providing the ad hoc
payment from the NPF Fund for 1986 through 1990, the Trustees are
deemed to have provided the NPF COLA benefits under the Plan
before 1991, pursuant to section 1.411(d)-4, Q&A-1(c)(1), Income
Tax Regs.10 Respondent maintains that the pre-1991 series of ad
10 Sec. 1.411(d)-4, Q&A-1(c)(1), Income Tax Regs., provides:
(c) Plan terms. (1) General rule.
Generally, benefits described in section
411(d)(6)(A), early retirement benefits,
retirement-type subsidies, and optional forms
of benefit are section 411(d)(6) protected
benefits only if they are provided under the
terms of a plan. However, if an employer
establishes a pattern of repeated plan
amendments providing for similar benefits in
similar situations for substantially
consecutive, limited periods of time, such
benefits will be treated as provided under
the terms of the plan, without regard to the
limited periods of time, to the extent
necessary to carry out the purposes of
section 411(d)(6) * * * .
(2) Effective date. The provisions of
(continued...)
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