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than the amount calculated using the applicable mortality table
and the applicable interest rate; and (3) provides that the
applicable interest rate is the annual interest rate on 30-year
Treasury securities for the second calendar month preceding the
calendar month in which the PBGC interest rate would have
otherwise been determined before the amendment. (The amendment
to the lump-sum payment option also satisfies the requirements of
section 1.417(e)-1(d)(4), Income Tax Regs., by (1) providing for
a calendar quarter “stability period” with respect to the
applicable interest rate; (2) specifying that the “lookback
month” for determining the applicable interest rate is the second
calendar month preceding the stability period; and (3) applying
the time and method for determining the applicable interest rate
uniformly to all of the participants falling under Schedule B of
the amended plan. See sec. 1.417(e)-1(d)(4)(i) through (iii),
Income Tax Regs.)
Notwithstanding the amendment’s compliance with the safe
harbor provided by section 1.417(e)-1(d)(10)(iv), Income Tax
Regs., petitioner contends that the amended plan violates the
anti-cutback rule of section 411(d)(6) because the change in the
interest rate assumption used to calculate the present value of a
participant’s accrued benefit under the lump-sum payment option
occurred after the deadline specified in the following portion of
section 1.417(e)-1(d)(10)(i), Income Tax Regs.:
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