37346 Federal Register / Vol. 77, No. 120 / Thursday, June 21, 2012 / Proposed Rules 

which could cause failure of the engine, and 

consequent reduced controllability of the 

airplane. 

(f) Compliance 

You are responsible for having the actions 

required by this AD performed within the 

compliance times specified, unless the 

actions have already been done. 

(g) Repetitive Detailed Inspection 

At the applicable compliance time 

specified in paragraphs (g)(1) and (g)(2) of 

this AD: Do a tap test inspection of the three 

inner acoustic panels of each engine air 

intake cowl for disbonding, in accordance 

with the Accomplishment Instructions of 

Airbus Mandatory Service Bulletin A330–71– 

3024, Revision 01, dated September 27, 2011. 

Repeat the inspection thereafter at intervals 

not to exceed 24 months, except as required 

by paragraphs (h) and (i) of this AD. 

(1) For an engine air intake cowl that has 

accumulated less than 5,000 total flight 

cycles or less than 20,000 total flight hours, 

whichever occurs first, since its first 

installation on an airplane as of the effective 

date of this AD: Within 24 months after the 

engine air intake cowl has accumulated 5,000 

total flight cycles or 20,000 total flight hours, 

whichever occurs first, since its first 

installation on an airplane. 

(2) For an engine air intake cowl that has 

accumulated 5,000 or more total flight cycles 

or 20,000 or more total flight hours, 

whichever occurs first, since its first 

installation on an airplane as of the effective 

date of this AD: Within 24 months after the 

effective date of this AD. 

(h) Inspection of Replaced Engine Intake 

Cowl 

For airplanes on which an engine air intake 

cowl is replaced after the effective date of 

this AD, at the applicable compliance time 

specified in paragraph (h)(1) or (h)(2) of this 

AD: Do a tap test inspection for disbonding 

of the three inner acoustic panels of the 

affected engine air intake cowl for 

disbonding, in accordance with the 

Accomplishment Instructions of Airbus 

Mandatory Service Bulletin A330–71–3024, 

Revision 01, dated September 27, 2011. 

Repeat the inspection thereafter at intervals 

not to exceed 24 months. 

(1) Within 24 months after the engine air 

intake cowl accumulates 5,000 total flight 

cycles or 20,000 total flight hours, whichever 

occurs first, since its first installation on any 

airplane, except as required by paragraph 

(h)(2) of this AD. 

(2) Before installation, if an engine air 

intake cowl has accumulated 5,000 or more 

total flight cycles or 20,000 or more total 

flight hours, whichever occurs first, since its 

first installation on any airplane, and which 

has not been inspected in accordance with 

the Accomplishment Instructions of Airbus 

Mandatory Service Bulletin A330–71–3024, 

Revision 01, dated September 27, 2011, 

within the preceding 24 months. 

(i) Corrective Actions 

(1) If any disbonding is found during any 

inspection required by this AD, and the 

findings are within the permitted allowable 

damage limit (ADL) specified in Rolls-Royce 

Alert Service Bulletin RB. 211–71–AG419, 

including Appendix 1, dated May 10, 2011: 

Do the actions specified in paragraph (i)(1)(i), 

(i)(1)(ii), or (i)(1)(iii) of this AD. 

(i) Repeat the tap test inspection required 

by paragraph (g) of this AD at the applicable 

inspection interval specified in Rolls-Royce 

Alert Service Bulletin RB. 211–71–AG419, 

including Appendix 1, dated May 10, 2011, 

until the actions required by paragraph 

(i)(1)(ii) or (i)(1)(iii) are accomplished. 

(ii) Repair the affected engine air intake 

cowl before further flight, in accordance with 

the Accomplishment Instructions of RollsRoyce Alert Service Bulletin RB. 211–71– 

AG419, including Appendix 1, dated May 10, 

2011. Repeat the inspection specified in 

paragraph (g) of this AD thereafter at the 

applicable compliance time specified in 

paragraph (g) of this AD. 

(iii) Replace the affected engine air intake 

cowl before further flight, in accordance with 

the Accomplishment Instructions of RollsRoyce Alert Service Bulletin RB. 211–71– 

AG419, including Appendix 1, dated May 10, 

2011. Repeat the inspection specified in 

paragraph (g) of this AD thereafter at the 

applicable compliance time specified in 

paragraph (g) of this AD. 

(2) If any disbonding is found during any 

inspection required by this AD, and the 

findings are not within the permitted ADL 

specified in Rolls-Royce Alert Service 

Bulletin RB. 211–71–AG419, including 

Appendix 1, dated May 10, 2011: Before 

further flight, replace the affected engine air 

intake cowl, in accordance with the 

Accomplishment Instructions of Rolls-Royce 

Alert Service Bulletin RB. 211–71–AG419, 

including Appendix 1, dated May 10, 2011. 

Repeat the inspection specified in paragraph 

(g) of this AD thereafter at the applicable 

compliance time specified in paragraph (g) of 

this AD. 

(j) Other FAA AD Provisions 

The following provisions also apply to this 

AD: 

(1) Alternative Methods of Compliance 

(AMOCs): The Manager, International 

Branch, ANM–116, Transport Airplane 

Directorate, FAA, has the authority to 

approve AMOCs for this AD, if requested 

using the procedures found in 14 CFR 39.19. 

In accordance with 14 CFR 39.19, send your 

request to your principal inspector or local 

Flight Standards District Office, as 

appropriate. If sending information directly 

to the International Branch, send it to ATTN: 

Vladimir Ulyanov, Aerospace Engineer, 

International Branch, ANM–116, Transport 

Airplane Directorate, FAA, 1601 Lind 

Avenue SW., Renton, Washington 98057– 

3356; telephone (425) 227–1138; fax (425) 

227-1149. Information may be emailed to: 

9-ANM-116-AMOC-REQUESTS@faa.gov. 

Before using any approved AMOC, notify 

your appropriate principal inspector, or 

lacking a principal inspector, the manager of 

the local flight standards district office/ 

certificate holding district office. The AMOC 

approval letter must specifically reference 

this AD. 

(2) Airworthy Product: For any requirement 

in this AD to obtain corrective actions from 

a manufacturer or other source, use these 

actions if they are FAA-approved. Corrective 

actions are considered FAA-approved if they 

are approved by the State of Design Authority 

(or their delegated agent). You are required 

to assure the product is airworthy before it 

is returned to service. 

(k) Related Information 

(1) Refer to MCAI European Aviation 

Safety Agency, Airworthiness Directive 

2011–0173, dated September 13, 2011, and 

the following service information for related 

information. 

(i) Airbus Mandatory Service Bulletin 

A330–71–3024, Revision 01, dated 

September 27, 2011. 

(ii) Rolls-Royce Alert Service Bulletin RB. 

211–71–AG419, including Appendix 1, dated 

May 10, 2011. 

(2) For Airbus service information 

identified in this AD, contact Airbus SAS— 

Airworthiness Office—EAL, 1 Rond Point 

Maurice Bellonte, 31707 Blagnac Cedex, 

France; telephone +33 5 61 93 36 96; fax +33 

5 61 93 45 80; email airworthiness.A330- 

A340@airbus.com; Internet http:// 

www.airbus.com. For Rolls-Royce service 

information identified in this AD, contact 

Rolls-Royce plc, P.O. Box 31, Derby, DE24 

8BJ, England; telephone 011 44 1332 242424; 

fax 011 44 1332 249936; Internet https:// 

www.aeromanager.com. You may review 

copies of the referenced service information 

at the FAA, Transport Airplane Directorate, 

1601 Lind Avenue SW., Renton, Washington. 

For information on the availability of this 

material at the FAA, call 425–227–1221. 

Issued in Renton, Washington, on June 12, 

2012. 

Kalene C. Yanamura, 

Acting Manager, Transport Airplane 

Directorate, Aircraft Certification Service. 

[FR Doc. 2012–15175 Filed 6–20–12; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF STATE 

22 CFR Parts 120, 121, 123, 124, 125, 

126, 127, 128, 129, and 130 

[Public Notice: [7927]] 

Export Control Reform Transition Plan 

AGENCY: Department of State. 

ACTION: Proposed policy statement, 

request for comments. 

SUMMARY: As part of the President’s 

export control reform initiative, the 

Directorate of Defense Trade Controls 

(DDTC) seeks public comment on the 

proposed implementation plan for 

defense articles and defense services 

that will transition from the jurisdiction 

of the Department of State to the 

Department of Commerce. The intent of 

this plan is to provide a clear 

description of DDTC’s proposed policies 

and procedures for the transition of 

items to the jurisdiction of the 

Department of Commerce. The revisions 


TKELLEY on DSK3SPTVN1PROD with PROPOSALS
Federal Register / Vol. 77, No. 120 / Thursday, June 21, 2012 / Proposed Rules 37347 

to this rule are part of the Department 

of State’s retrospective plan under E.O. 

13563 completed on August 17, 2011. 

The Department of State’s full plan can 

be accessed at http://www.state.gov/ 

documents/organization/181028.pdf. 

DATES: The Department of State will 

accept comments on this proposed 

policy statement until August 6, 2012. 

ADDRESSES: Interested parties may 

submit comments within 45 days of the 

date of publication by one of the 

following methods: 

• Email: 

DDTCResponseTeam@state.gov with the 

subject line, ‘‘ECR Transition 

Guidance.’’ 

• Internet: At www.regulations.gov, 

search for this notice by using this 

notice’s docket number, DOS–2012– 

0020. 

Comments received after that date 

will be considered if feasible, but 

consideration cannot be assured. Those 

submitting comments should not 

include any personally identifying 

information they do not desire to be 

made public or information for which a 

claim of confidentiality is asserted 

because those comments and/or 

transmittal emails will be made 

available for public inspection and 

copying after the close of the comment 

period via the Directorate of Defense 

Trade Controls Web site at 

www.pmddtc.state.gov. Parties who 

wish to comment anonymously may do 

so by submitting their comments via 

www.regulations.gov, leaving the fields 

that would identify the commenter 

blank and including no identifying 

information in the comment itself. 

Comments submitted via 

www.regulations.gov are immediately 

available for public inspection. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Candace M. J. Goforth, Director, Office 

of Defense Trade Controls Policy, U.S. 

Department of State, telephone (202) 

663–2792, or email 

DDTCResponseTeam@state.gov. ATTN: 

ECR Transition Guidance. 

SUPPLEMENTARY INFORMATION: The 

Directorate of Defense Trade Controls 

(DDTC), U.S. Department of State, 

administers the International Traffic in 

Arms Regulations (ITAR) (22 CFR parts 

120–130). The items subject to the 

jurisdiction of the ITAR, i.e., ‘‘defense 

articles,’’ are identified on the ITAR’s 

U.S. Munitions List (USML) (22 CFR 

121.1). With few exceptions, items not 

subject to the export control jurisdiction 

of the ITAR are subject to the 

jurisdiction of the Export 

Administration Regulations (‘‘EAR,’’ 15 

CFR parts 730–774, which includes the 

Commerce Control List (CCL) in 

Supplement No. 1 to part 774), 

administered by the Bureau of Industry 

and Security (BIS), U.S. Department of 

Commerce. Both the ITAR and the EAR 

impose license requirements on exports 

and reexports. Items not subject to the 

ITAR or to the exclusive licensing 

jurisdiction of any other set of 

regulations are subject to the EAR. 

Transition Plan 

The Departments of State and 

Commerce described in their respective 

Advanced Notices of Proposed 

Rulemaking (ANPRM) in December 

2010 the Administration’s plan to make 

the USML and the CCL positive, tiered, 

and aligned so that eventually they can 

be combined into a single control list 

(see ‘‘Commerce Control List: Revising 

Descriptions of Items and Foreign 

Availability,’’ 75 FR 76664 (December 9, 

2010) and ‘‘Revision to the United 

States Munitions List,’’ 75 FR 76935 

(December 10, 2010)). Since that time, 

DDTC has published proposed revisions 

to several USML Categories, which, 

when implemented, will transition a 

significant number of items to the 

jurisdiction of the Department of 

Commerce. 

Because an immediate effective date 

would impose undue compliance 

burden on the defense industry, DDTC 

has developed the following phased 

implementation plan for items that will 

transition from the USML to the CCL, 

and will become effective for those 

items upon publication of each revised 

USML category. This phased 

implementation plan is designed to 

mitigate the impact on U.S. license 

holders, while assuring that all defense 

trade that should be licensed remains 

so. Under the plan U.S. license holders 

will continue to use their approved 

licenses at the time the transition takes 

place. 

Licenses (DSP–5, DSP–61, and DSP–73) 

Licenses for items transitioning to the 

CCL that are issued in the period prior 

to the date of final rule publication for 

each revised USML category will remain 

valid until expired, returned by the 

license holder, a license amendment is 

required, or for a period of two years 

from the effective date, whichever 

occurs first. Any limitation, proviso or 

other requirement imposed on the 

DDTC authorization will remain in 

effect. The Department of Commerce 

may be consulted regarding the 

applicability of the EAR to the subject 

commodity. 

License applications for items 

transitioning to the CCL that are 

received by DDTC prior to final rule 

publication for each revised USML 

category will be adjudicated up until the 

effective date of the rule, unless the 

applicant requests that the application 

be Returned Without Action. 

License applications received by 

DDTC within the 45 days following the 

final rule’s publication, but before the 

rule becomes effective, will be 

adjudicated only when the applicant 

provides a written statement certifying 

that the export or temporary import will 

be completed within 45 days after the 

effective date of the final rule. License 

applications that do not contain this 

certification will be Returned Without 

Action. The validity period for licenses 

issued in this timeframe will be limited 

to the date 45 days after the effective 

date of the final rule. 

License amendment requests (i.e., 

DSP–6, DSP–62, and DSP–74) received 

by DDTC within the 45 days following 

the final rule’s publication, but before 

the rule becomes effective, will be 

adjudicated only when the applicant 

provides a written statement certifying 

that the export or temporary import will 

be completed within 45 days after the 

effective date of the final rule. 

Amendment requests that do not 

contain this statement will be Returned 

Without Action. The validity period for 

amended licenses issued in this 

timeframe will be limited to the date 45 

days after the effective date of the final 

rule. 

All license requests, including 

amendments, received after the effective 

date for items that have transitioned to 

the CCL will be Returned Without 

Action with instructions to contact the 

Department of Commerce. 

Technical Assistance Agreements, 

Manufacturing License Agreements, and 

Warehouse and Distribution Agreements 

Agreements approved prior to the 

date of relevant final rule publication 

will remain valid until expired, unless 

they require an amendment, or for a 

period of two years from the effective 

date of the transition, whichever occurs 

first. Any activity conducted under an 

agreement will remain subject to all 

limitations, provisos and other 

requirements stipulated in the 

agreement. 

Agreement amendments that 

incorporate items moving to the CCL 

prior to the date of publication of the 

final rule will remain valid until 

expired or for a period of two years from 

the effective date of the transition, 

whichever occurs first. 

Agreements and amendments 

received after the final rule is published, 

but before it becomes effective, will be 

Returned Without Action if the 

agreement contains both USML and CCL 


TKELLEY on DSK3SPTVN1PROD with PROPOSALS
37348 Federal Register / Vol. 77, No. 120 / Thursday, June 21, 2012 / Proposed Rules 

items. The agreement holder will be 

required to amend the agreement to 

remove all CCL items. Any agreement in 

which all items are transitioning to the 

CCL must be terminated and the 

applicant must seek a new authorization 

from the Department of Commerce, as 

applicable. 

Agreements and agreement 

amendments for items moving to the 

CCL which are received after the 

effective date will be Returned Without 

Action with instructions to contact the 

Department of Commerce. 

Reporting Requirements 

All reporting requirements for 

Manufacturing License Agreements 

under ITAR § 124.9(a)(6) and 

Warehouse and Distribution Agreements 

under ITAR § 124.14(c)(6) must be 

complied with and such reports must be 

submitted to the Department of State 

while the agreement is relied upon as an 

export authorization by the exporter. 

Commodity Jurisdiction Determinations 

Previously rendered commodity 

jurisdiction (CJ) determinations for 

items deemed to be USML, but that are 

subsequently transitioning to the CCL 

pursuant to a published final rule, will 

no longer be valid after the transition 

date. Exporters are encouraged to review 

each revised USML category along with 

its companion CCL category to 

determine whether their items have 

transitioned to the jurisdiction of the 

Department of Commerce. Consistent 

with the recordkeeping requirements of 

the ITAR and the EAR, licensees and 

foreign persons subject to licenses must 

maintain records reflecting their 

assessments of the proper regulatory 

jurisdiction over their items. Licensees 

who are unable to ascertain the proper 

jurisdiction of their items may request a 

CJ determination from DDTC through 

the current, established procedure. 

Licensees who are certain their items 

have transitioned to the CCL are 

encouraged to review the appropriate 

Export Control Classification Number 

(ECCN) to determine the classification 

of their item. Licensees who are unsure 

of the proper ECCN designation may 

request a Commodity Classification 

Automated Tracking System (CCATS) 

determination from the Department of 

Commerce through the current, 

established procedure. See 15 CFR 

748.3. 

Reexport/Retransfer of USML items that 

have transitioned to the CCL 

Following the effective date of 

transition, foreign persons (i.e., endusers, foreign consignees, and foreign 

intermediate consignees) who receive, 

via a Department of State authorization, 

an item that they are certain has 

transitioned to the CCL (e.g., confirmed 

in writing by manufacturer or supplier), 

should treat the item as such and submit 

requests for post-transition reexports or 

retransfers to the Department of 

Commerce, as may be required by the 

EAR. 

Foreign persons or U.S. persons 

abroad that have USML items in their 

inventory at the effective date of 

transition should review both the USML 

and the CCL to determine the proper 

jurisdiction. If doubt exists on 

jurisdiction of the items, the foreign 

person should contact the original 

exporter. If the item is clearly controlled 

by the Department of Commerce, any 

reexport or retransfer must comply with 

the requirements of the EAR. 

Regulatory Oversight Responsibilities 

For those items transitioning from the 

USML to the CCL, the Department of 

Commerce will exercise regulatory 

oversight, effective on the transition 

date, for the purposes of licensing and 

enforcement of exports from the United 

States where no Department of State 

authorization is being used. The 

Department of State will continue to 

exercise regulatory oversight concerning 

all Department of State licenses, 

agreements, and other authorizations, 

including those where exporters, 

temporary importers, manufacturers, 

and brokers continue to use previously 

issued Department of State licenses and 

agreements after the effective date of the 

final rule. 

License holders may decide to apply 

for and use Department of Commerce 

authorizations for export of the newly 

transitioned CCL items rather than 

continue to use previously issued 

Department of State authorizations. In 

such cases, license holders must return 

the Department of State licenses in 

accordance with ITAR § 123.22, and 

obtain the required Department of 

Commerce authorizations. 

Violations and Voluntary Disclosures of 

Possible Violations 

Exporters, temporary importers, 

manufacturers, and brokers are 

cautioned to closely monitor ITAR and 

EAR compliance concerning 

Department of State licenses and 

agreements for items transitioning from 

the USML to the CCL. 

On the effective date of each rule that 

adds an item to the CCL that was 

previously subject to the ITAR, that item 

will be subject to the EAR. 

Authorizations issued by DDTC before 

the transition date may continue to be 

used as described above by exporters, 

temporary importers, manufacturers, 

and brokers. The violation of a 

previously issued DDTC authorization 

(including any condition of a DDTC 

authorization) that is continued in use 

under the ITAR as described above is a 

violation of the ITAR. 

With respect to a transitioned item, 

should a possible violation of the ITAR, 

the EAR, or any license or authorization 

issued thereunder be discovered, the 

person or persons involved are strongly 

encouraged to consult with DDTC or BIS 

as appropriate, to avail themselves of 

the current, established procedures for 

submitting voluntary disclosures and for 

requesting specific authorization to take 

any further actions in connection with 

that item. 

License holders and foreign persons 

must obtain Department of State 

authorization before disposing, 

reselling, transshipping, or otherwise 

transferring any item in their possession 

that remains on the USML. 

Registration 

Manufacturers, exporters, and brokers 

are required to register with the 

Department of State if their activities 

involve USML defense articles or 

defense services. 

Registered manufacturers, exporters, 

temporary importers, defense service 

providers and brokers (‘‘registrants’’) are 

reminded of the requirement to notify 

DDTC in writing when they are no 

longer in the business of manufacturing, 

exporting, or brokering USML defense 

articles or defense services. Registrants 

who determine that all of their activities 

involve articles or services that will 

transition from the USML to the CCL 

and therefore are no longer required to 

register with the Department of State 

must provide such written notification. 

Instructions for providing such 

notification are accessible on the DDTC 

Web site (www.pmddtc.state.gov). Note 

that DDTC will not cancel or revoke 

those registrations, but will allow the 

registration to expire. Registrants who 

determine that all of their activities will 

be subject to Department of Commerce 

jurisdiction as a result of the transition 

from the USML to the CCL must 

nevertheless maintain registration with 

the Department of State until the 

effective date of the transition. 

Registrants who determine they will 

no longer be required to register with 

the Department of State after the 

effective date of transition, and who 

have registration renewal dates that 

occur after publication of the final rule 

but before its effective date, may request 

to have their registration expiration date 

extended to the effective date of 

transition and not be charged a 


TKELLEY on DSK3SPTVN1PROD with PROPOSALS
Federal Register / Vol. 77, No. 120 / Thursday, June 21, 2012 / Proposed Rules 37349 

registration fee. In those cases, 

registrants must insert the following 

statement as the first paragraph in the 

written notification previously 

mentioned: ‘‘(insert company name) 

requests DDTC extend our registration 

expiration date to the effective date of 

transition to CCL for USML Category 

(insert Category number) items and 

waive the registration fee. (insert 

company name) certifies that no 

changes in our eligibility from what is 

represented in our previously submitted 

DS–2032 Statement of Registration has 

occurred (otherwise specify change in 

eligibility status). Registrants that avail 

themselves of the opportunity to 

continue using previously issued 

Department of State authorizations 

(licenses and agreements) for items that 

have transitioned to the CCL must 

maintain current registration with the 

Department of State, which includes 

payment of registration fees. 

Request for Comments 

DDTC requests public consideration 

and comment on the preceding 

transition plan, taking into account the 

following specific questions: 

1. Is the transition plan clear and 

understandable? Is it logical? 

2. Does the plan adequately address 

all regulated scenarios? 

3. Will industry compliance with 

existing export control law be negatively 

affected by this plan? 

4. Recognizing that this regulatory 

transition will unavoidably create 

challenges for industry, does the plan as 

presented effectively minimize these 

challenges? 

5. Does the plan impose undue 

burden on industry, and if so, are there 

any suggestions that will help mitigate 

them? 

Dated: June 14, 2012. 

Rose E. Gottemoeller, 

Acting Under Secretary, Arms Control and 

International Security, Department of State. 

[FR Doc. 2012–15070 Filed 6–20–12; 8:45 am] 

BILLING CODE 4710–25–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[REG–113738–12] 

RIN 1545–BK94 

Amendment of Prohibited Payment 

Option Under Single-Employer Defined 

Benefit Plan of Plan Sponsor in 

Bankruptcy 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Notice of proposed rulemaking 

and notice of public hearing. 

SUMMARY: This document contains 

proposed regulations that would 

provide guidance under the anti-cutback 

rules of section 411(d)(6) of the Internal 

Revenue Code, which generally prohibit 

plan amendments eliminating or 

reducing accrued benefits, early 

retirement benefits, retirement-type 

subsidies, and optional forms of benefit 

under qualified retirement plans. These 

proposed regulations would provide an 

additional limited exception to the anticutback rules to permit a plan sponsor 

that is a debtor in a bankruptcy 

proceeding to amend its singleemployer defined benefit plan to 

eliminate a single-sum distribution 

option (or other optional form of benefit 

providing for accelerated payments) 

under the plan if certain specified 

conditions are satisfied. These proposed 

regulations would affect administrators, 

employers, participants, and 

beneficiaries of such a plan. This 

document also provides notice of a 

public hearing on these proposed 

regulations. 

DATES: Written or electronic comments 

must be received by August 20, 2012. 

Outlines of topics to be discussed at the 

public hearing scheduled for Friday, 

August 24, 2012, at 10 a.m. must also be 

received by August 16, 2012. 

ADDRESSES: Send submissions to: 

CC:PA:LPD:PR (REG–113738–12), Room 

5203, Internal Revenue Service, P.O. 

Box 7604, Ben Franklin Station, 

Washington, DC 20044. Submissions 

may be hand-delivered Monday through 

Friday between the hours of 8 a.m. and 

4 p.m. to: CC:PA:LPD:PR (REG–113738– 

12), Courier’s Desk, Internal Revenue 

Service, 1111 Constitution Avenue NW., 

Washington, DC, or sent electronically, 

via the Federal eRulemaking Portal at 

http://www.regulations.gov (IRS REG– 

113738–12). The public hearing will be 

held in the IRS Auditorium, Internal 

Revenue Building, 1111 Constitution 

Avenue NW., Washington, DC. 

FOR FURTHER INFORMATION CONTACT: 

Concerning the regulations, Neil S. 

Sandhu or Linda S.F. Marshall at (202) 

622–6090; concerning submissions of 

comments, the hearing, and/or being 

placed on the building access list to 

attend the hearing, Oluwafunmilayo 

(Funmi) Taylor at (202) 622–7180 (not 

toll-free numbers). 

SUPPLEMENTARY INFORMATION: 

Background 

This document contains proposed 

amendments to the Income Tax 

Regulations (26 CFR part 1) under 

section 411(d)(6) of the Internal 

Revenue Code (Code). These proposed 

regulations would amend § 1.411(d)–4 

of the Treasury regulations. 

Section 401(a)(7) provides that a trust 

does not constitute a qualified trust 

unless its related plan satisfies the 

requirements of section 411 (relating to 

minimum vesting standards). Section 

411(d)(6)(A) provides that a plan is 

treated as not satisfying the 

requirements of section 411 if the 

accrued benefit of a participant is 

decreased by an amendment of the plan, 

other than an amendment described in 

section 412(d)(2) of the Code or section 

4281 of the Employee Retirement 

Income Security Act of 1974, Public 

Law 93–406 (88 Stat. 829 (1974)), as 

amended (ERISA). 

Section 411(d)(6)(B) provides that a 

plan amendment that has the effect of 

eliminating or reducing an early 

retirement benefit or a retirement-type 

subsidy, or eliminating an optional form 

of benefit, with respect to benefits 

attributable to service before the 

amendment is treated as impermissibly 

reducing accrued benefits. For a 

retirement-type subsidy, this protection 

applies only with respect to a 

participant who satisfies (either before 

or after the amendment) the 

preamendment conditions for the 

subsidy. The last sentence of section 

411(d)(6)(B) provides that the Secretary 

may by regulations provide that section 

411(d)(6)(B) does not apply to a plan 

amendment that eliminates an optional 

form of benefit (other than a plan 

amendment that has the effect of 

eliminating or reducing an early 

retirement benefit or a retirement-type 

subsidy). 

Section 436(d)(2) provides that a 

defined benefit plan which is a singleemployer plan must provide that, 

during any period in which the plan 

sponsor is a debtor in a case under title 

11, United States Code, or similar 

Federal or State law (a ‘‘bankruptcy 

case’’), the plan may not pay any 

‘‘prohibited payment.’’ However, that 

limitation does not apply in a plan year 


TKELLEY on DSK3SPTVN1PROD with PROPOSALS