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will be the greater of the amount that would be
determined under the plan without regard to the
amendment and the amount determined under the plan with
regard to the amendment.
* * * * * * *
SECTION 2. BACKGROUND
* * * * * * *
.07 Under sec. 417(e)(3), as amended by sec. 767
of the Retirement Protection Act of 1994 (“RPA 94,”
which is part of GATT), and sec. 1.417(e)-1(d), a
defined benefit plan must provide that the present
value of any accrued benefit and the amount of any
distribution must not be less than the amount
calculated using the applicable interest rate described
in sec. 1.417(e)-1(d)(3) and the applicable mortality
table described in sec. 1.417(e)-1(d)(2). * * *
Section 767 of RPA 94 and sec. 1.417(e)-1(d) are
generally effective for distributions with annuity
starting dates in plan years beginning after
December 31, 1994. However, sec. 417(e)(3)(B) provides
a transition rule for plans adopted and in effect as
of December 7, 1994 (“pre-GATT plans”). In general,
under this rule, the present value of a distribution
from a pre-GATT plan that is made before the earlier of
(i) the first plan year beginning after December 31,
1999, or (ii) the later of the adoption or effective
date of a plan amendment applying the changes made to
sec. 417(e)(3) to the plan is to be determined under
the plan’s pre-GATT terms. Thus, for pre-GATT plans,
amendments applying the changes to sec. 417(e)(3) to
plan years beginning before January 1, 2000, could not
be adopted retroactively, and these plans could not be
operated in accordance with the changes prior to plan
amendment.
.08 Section 767(d)(2) of RPA 94 provides that a
participant’s accrued benefit is not considered to be
reduced in violation of sec. 411(d)(6) merely because
the benefit is determined in accordance with the
applicable interest rate rules and the applicable
mortality table rules of sec. 417(e)(3)(A), as amended
by RPA 94. Section 1.417(e)-1(d)(10) explains the
scope of relief from the requirements of sec.
411(d)(6). A plan amendment to comply with the
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