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[A] plan amendment that changes the interest rate or
the mortality assumptions used for the purposes
described in paragraph (d)(1) of this section merely to
eliminate use of the interest rate described in
paragraph (d)(3) or paragraph (d)(9) of this section,
or the applicable mortality table, with respect to a
distribution form described in paragraph (d)(6) of this
section, for distributions with annuity starting dates
occurring after a specified date that is after the
amendment is adopted, does not violate the requirements
of section 411(d)(6) if the amendment is adopted on or
before the last day of the last plan year ending before
January 1, 2000. [Emphasis added.]
As discussed below, petitioner’s argument is unpersuasive.
According to the portion of section 1.417(e)-1(d)(10)(i),
Income Tax Regs., upon which petitioner relies, only those plan
amendments made with respect to distribution forms described in
section 1.417(e)-1(d)(6), Income Tax Regs., are subject to the
deadline specified in section 1.417(e)-1(d)(10)(i), Income Tax
Regs. Section 1.417(e)-1(d)(6), Income Tax Regs., provides as
follows:
(6) Exceptions. This paragraph (d) (other than
the provisions relating to section 411(d)(6)
requirements in paragraph (d)(10) of this section) does
not apply to the amount of a distribution paid in the
form of an annual benefit that–-
(i) Does not decrease during the life of the
participant, or, in the case of a QPSA [qualified
preretirement survivor annuity], the life of the
participant’s spouse; or
(ii) Decreases during the life of the
participant merely because of–-
(A) The death of the survivor annuitant
(but only if the reduction is to a level not below 50%
of the annual benefit payable before the death of the
survivor annuitant); or
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