28604 Federal Register / Vol. 72, No. 98 / Tuesday, May 22, 2007 / Rules and Regulations 

1This rule is limited to a pension plan, which is 

either a defined benefit plan or a defined 

contribution plan that is not a stock bonus or profitsharing plan (generally referred to as a money 

purchase pension plan). Other rules apply to stock 

bonus plans and profit-sharing plans. 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[TD 9325] 

RIN 1545–BD23 

Distributions From a Pension Plan 

Upon Attainment of Normal Retirement 

Age 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Final regulations. 

SUMMARY: This document contains final 

regulations under sections 401(a) and 

411(d)(6) of the Internal Revenue Code. 

These regulations provide rules 

permitting distributions to be made 

from a pension plan upon the 

attainment of normal retirement age 

prior to a participant’s severance from 

employment with the employer 

maintaining the plan. These regulations 

provide the public with guidance 

regarding distributions from qualified 

pension plans and will affect 

administrators of, and participants in, 

such plans. 

DATES: Effective Date: These regulations 

are effective May 22, 2007. 

Applicability Dates: These regulations 

are generally applicable May 22, 2007. 

For dates of applicability, see 

§§ 1.401(a)–1(b)(4) and 1.411(d)–4, A–

12(a). 

FOR FURTHER INFORMATION CONTACT: 

Cathy A. Vohs at (202) 622–6090 or 

Janet A. Laufer at (202) 622–6080 (not 

a toll-free number). 

SUPPLEMENTARY INFORMATION: 

Background 

Section 401(a) sets forth the 

qualification requirements for a trust 

forming part of a stock bonus, pension, 

or profit-sharing plan of an employer. 

Several of these qualification 

requirements are based on a plan’s 

normal retirement age. Section 411(a)(8) 

defines the term ‘‘normal retirement 

age’’ as the earlier of (a) the time a 

participant attains normal retirement 

age under the plan or (b) the later of the 

time a plan participant attains age 65 or 

the 5th anniversary of the time a plan 

participant commenced participation in 

the plan. 

The definition of normal retirement 

age is important in applying the rules 

under section 411(b) which are designed 

to preclude avoidance of the minimum 

vesting standards through the 

backloading of benefits (for example, a 

benefit formula under which the rate of 

benefit accrual is increased 

disproportionately for employees with 

longer service) because those rules are 

based on the benefit payable at normal 

retirement age. Normal retirement age is 

also relevant for applying the rules 

relating to suspension of benefits under 

section 411(a)(3)(B) and the rules under 

section 411(b)(1)(H)(iii) that permit a 

plan to offset accruals after normal 

retirement age by either the actuarial 

value of distributions made after normal 

retirement age or the actuarial value of 

increases in the benefits due to delay in 

payment. Normal retirement age is also 

used in determining the minimum 

benefit for non-key employees in the 

case of a top-heavy defined benefit plan. 

See section 416(c)(1)(A) and (E). Also, 

the vesting requirements of sections 

401(a)(7) and 411 are based upon 

normal retirement age. 

Section 411(d)(6) generally prohibits a 

qualified plan from being amended to 

reduce a participant’s accrued benefit 

and, for this purpose, an elimination or 

reduction of an early retirement benefit 

or a retirement-type subsidy, or an 

elimination of an optional form of 

benefit, is treated as a reduction in the 

accrued benefit. The Secretary has the 

authority under section 411(d)(6) to 

allow amendments that eliminate an 

optional form of benefit. 

Section 401(a) permits three types of 

plans to qualify under section 401(a): 

Stock bonus, pension, and profit-sharing 

plans. Section 1.401–1(a)(2)(i) and 

(b)(1)(i) of the Income Tax Regulations 

interprets what it means to be a 

‘‘pension plan,’’ and has done so since 

the publication of those regulations as 

TD 6203 (1956–2 CB 219) (see 

§ 601.601(d)(2)(ii)(b)). These regulations 

(the 1956 regulations) provide that a 

qualified plan under section 401(a) is a 

program and arrangement which is 

established and maintained by an 

employer ‘‘in the case of a pension plan, 

to provide for the livelihood of the 

employees or their beneficiaries after 

the retirement of such employees 

through the payment of benefits 

determined without regard to profits.’’ 1

The 1956 regulations defining a 

qualified pension plan further provide 

that a pension plan must be ‘‘a plan 

established and maintained by an 

employer primarily to provide 

systematically for the payment of 

definitely determinable benefits to his 

employees over a period of years, 

usually for life, after retirement.’’

Following the enactment of the 

Employee Retirement Income Security 

Act of 1974 (ERISA), 93 Public Law 406 

(88 Stat. 829), the regulations under 

section 401(a) were modified to provide 

that the 1956 regulations continued to 

apply, except as otherwise provided. 

See § 1.401(a)–1(b)(1)(i) and (ii). 

Accordingly, a pension plan is generally 

not permitted to pay benefits before 

retirement. See also Rev. Rul. 56–693 

(1956–2 CB 282), as modified by Rev. 

Rul. 60–323 (1960–2 CB 148) (see 

§ 601.601(d)(2)(ii)(b)). 

Rev. Rul. 71–24 (1971–1 CB 114) (see 

§ 601.601(d)(2)(ii)(b)) provides guidance 

for the treatment of benefits under a 

pension plan for employees who 

continue employment after normal 

retirement age. Rev. Rul. 71–24 includes 

an example that indicates that benefits 

are permitted to commence during 

employment after normal retirement 

age. 

Rev. Rul. 71–147 (1971–1 CB 116) (see 

§ 601.601(d)(2)(ii)(b)) provides that the 

normal retirement age in a pension or 

annuity plan is generally the lowest age 

specified in the plan at which the 

employee has the right to retire without 

the consent of the employer and receive 

retirement benefits based on the amount 

of the employee’s service on the date of 

retirement at the full rate set forth in the 

plan (that is, without actuarial or similar 

reduction because of retirement before 

some later specified age). While 

ordinarily the normal retirement age 

under pension and annuity plans is age 

65, Rev. Rul. 71–147 permitted a 

different age to be specified, but an age 

lower than 65 was permitted only if the 

age represented the age at which 

employees customarily retire in the 

particular company or industry, and 

was not a device to accelerate funding. 

Following the enactment of section 

411(a)(8) (defining normal retirement 

age as described earlier in this 

preamble) under ERISA, Rev. Rul. 71–

147 was modified by Rev. Rul. 78–120 

(1978–1 CB 117) (see 

§ 601.601(d)(2)(ii)(b)). Under Rev. Rul. 

78–120, for purposes of section 411, a 

pension plan is permitted to have a 

normal retirement age lower than age 

65, regardless of the age at which 

employees customarily retire in the 

particular company or industry. 

Section 401(a)(36), added by section 

905(b) of the Pension Protection Act of 

2006, Public Law 109–280 (120 Stat. 

780) (PPA ’06), provides that a trust 

forming part of a pension plan is not 

treated as failing to constitute a 

qualified trust under section 401(a) 

solely because the plan provides that a 

distribution may be made from such 

trust to an employee who has attained 


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Federal Register / Vol. 72, No. 98 / Tuesday, May 22, 2007 / Rules and Regulations 28605 

2The preamble to the proposed regulations noted 

that, while a low normal retirement age may have 

a significant cost effect on a traditional defined 

benefit plan, this effect is not as significant for 

defined contribution plans or for certain hybrid 

defined benefit plans. 

age 62 and who is not separated from 

employment at the time of such 

distribution. Section 401(a)(36) applies 

to distributions in plan years beginning 

after December 31, 2006. 

On November 10, 2004, a notice of 

proposed rulemaking (REG–114726–04) 

under section 401 was published in the 

Federal Register (69 FR 65108) (the 

proposed regulations). The proposed 

regulations would have allowed inservice distributions after normal 

retirement age, but would not have 

permitted a normal retirement age to be 

set so low as to be a subterfuge to avoid 

qualification requirements. The 

proposed regulations would also have 

permitted in-service distributions before 

normal retirement age under a bona fide 

phased retirement program. 

On March 14, 2005, the IRS held a 

public hearing on the proposed 

regulations. Written comments 

responding to the notice of proposed 

rulemaking were also received. In light 

of the enactment of section 401(a)(36) by 

PPA ’06, only portions of the proposed 

regulations are being finalized at this 

time. The IRS recently issued a notice 

requesting comments as to whether the 

portions of the proposed regulations 

relating to in-service distributions 

pursuant to a bona fide phased 

retirement program should be finalized. 

See Notice 2007–8 (2007–3 IRB 276) 

(see § 601.601(d)(2)(ii)(b)). The portions 

of the proposed regulations relating to 

normal retirement age and in-service 

distribution upon attainment of normal 

retirement age are being finalized by 

this Treasury Decision. The significant 

revisions to the proposed regulations are 

discussed in this preamble. 

Explanation of Provisions and 

Summary of Comments 

I. Overview 

This Treasury Decision modifies 

existing regulations, including the 

regulations at § 1.401(a)–1 which 

generally require a pension plan to be 

maintained primarily to provide 

systematically for the payment of 

definitely determinable benefits after 

retirement. These regulations provide 

two exceptions to this rule. First, they 

clarify that a pension plan is permitted 

to commence payment of retirement 

benefits to a participant after the 

participant has attained normal 

retirement age. The regulations also 

provide rules on how low a plan’s 

normal retirement age is permitted to be 

and include a related exception to the 

anti-cutback rules of section 411(d)(6) to 

allow conforming amendments during a 

transitional period. Second, the 

regulations reflect the provisions of new 

section 401(a)(36). 

II. Normal Retirement Age 

A. In General 

These regulations adopt the rule of 

the proposed regulations under which a 

pension plan (a defined benefit plan or 

money purchase pension plan) is 

permitted to pay benefits upon an 

employee’s attainment of normal 

retirement age, even if the employee has 

not yet had a severance from 

employment with the employer 

maintaining the plan. Comments 

generally supported the inclusion of this 

rule as reflecting existing practice 

among some pension plans, based on an 

example in Rev. Rul. 71–24. 

These regulations also include rules 

restricting a plan’s normal retirement 

age. The proposed regulations would 

have provided that a plan’s normal 

retirement age could not be set so low 

as to be a subterfuge to avoid the 

requirements of section 401(a), and, 

accordingly, normal retirement age 

could not be earlier than the earliest age 

that is reasonably representative of a 

typical retirement age for the covered 

workforce.2 Some comments expressed 

concern about the specifics of this rule, 

including concern about how it might 

be applied in various circumstances, 

and suggested that the regulations 

contain a safe harbor for which there 

would be no need for a demonstration 

of the typical retirement age for the 

covered workforce. 

These final regulations modify the 

proposed regulations to replace the 

subterfuge standard with a requirement 

that the normal retirement age under a 

plan be an age that is not earlier than 

the earliest age that is reasonably 

representative of the typical retirement 

age for the industry in which the 

covered workforce is employed. To 

address comments about the need for a 

safe harbor age, these regulations 

provide that a normal retirement age of 

at least age 62 is deemed to be not 

earlier than the typical retirement age 

for the industry in which the covered 

workforce is employed. Thus, a plan 

satisfies this safe harbor if its normal 

retirement age is age 62, or if its normal 

retirement age is the later of age 62 or 

another specified date, such as the later 

of age 62 or the fifth anniversary of plan 

participation. However, a plan that is 

subject to section 411 cannot provide for 

a normal retirement age that is later than 

the later of the time the participant 

attains age 65 or the fifth anniversary of 

the time the participant commenced 

participation in the plan. See section 

411(a)(8)(B). 

If a plan’s normal retirement age is 

earlier than age 62, the determination of 

whether the age is not earlier than the 

earliest age that is reasonably 

representative of the typical retirement 

age for the industry in which the 

covered workforce is employed is based 

on all of the relevant facts and 

circumstances. If the normal retirement 

age is between ages 55 and 62, then it 

is generally expected that a good faith 

determination of the typical retirement 

age for the industry in which the 

covered workforce is employed that is 

made by the employer (or, in the case 

of a multiemployer plan, made by the 

trustees) will be given deference, 

assuming that the determination is 

reasonable under the facts and 

circumstances. However, a normal 

retirement age that is lower than age 55 

is presumed to be earlier than the 

earliest age that is reasonably 

representative of the typical retirement 

age for the industry of the relevant 

covered workforce absent facts and 

circumstances that demonstrate 

otherwise to the Commissioner. 

In the case of a plan where 

substantially all of the participants in 

the plan are qualified public safety 

employees (within the meaning of 

section 72(t)(10)(B), as added by section 

828 of PPA ’06), a normal retirement age 

of age 50 or later is deemed not to be 

earlier than the earliest age that is 

reasonably representative of the typical 

retirement age for the industry in which 

the covered workforce is employed. 

Under section 72(t)(10)(B), a qualified 

public safety employee means any 

employee of a State or political 

subdivision of a State who provides 

police protection, firefighting services, 

or emergency medical services for any 

area within the jurisdiction of such 

State or political subdivision. 

B. Section 411(d)(6) Relief 

These regulations include an 

amendment to the existing regulations 

under section 411(d)(6) to permit a plan 

to be amended during a transition 

period to conform to the rules 

concerning normal retirement age. Thus, 

a plan amendment that changes the 

normal retirement age under the plan to 

a later normal retirement age (pursuant 

to these regulations) does not violate 

section 411(d)(6) merely because the 

amendment eliminates a right to an inservice distribution prior to the 

amended normal retirement age. 


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28606 Federal Register / Vol. 72, No. 98 / Tuesday, May 22, 2007 / Rules and Regulations 

However, this rule does not provide any 

other relief. For example, this rule does 

not permit the amendment to reduce 

benefits in some other manner that fails 

to satisfy section 411(d)(6). Neither does 

the rule provide relief under section 

411(a)(9) (requiring that the normal 

retirement benefit not be less than the 

greater of any early retirement benefit 

payable under the plan or the benefit 

under the plan commencing at normal 

retirement age), section 411(a)(10) (if the 

amendment changes the plan’s vesting 

rules), or section 4980F (or section 

204(h), the parallel provision of ERISA) 

(relating to amendments that reduce the 

rate of future benefit accrual). See also 

Rev. Rul. 81–210 (1981–2 CB 89) (see 

§ 601.601(d)(2)(ii)(b)). An example is 

included to illustrate this rule. 

Effective Dates 

These regulations are generally 

applicable May 22, 2007. In the case of 

a governmental plan (as defined in 

section 414(d)), these regulations apply 

with respect to plan years beginning on 

or after January 1, 2009. In the case of 

a plan maintained pursuant to one or 

more collective bargaining agreements 

that have been ratified and are in effect 

on May 22, 2007, these regulations do 

not apply before the first plan year that 

begins after the last of the agreements 

terminates determined without regard to 

any extension thereof (or, if earlier, May 

24, 2010. 

A provision of a plan that results in 

the failure of the plan to satisfy 

§ 1.401(a)–1(b)(2) or (3) is a 

disqualifying provision described in 

§ 1.401(b)–1(b)(3)(i). Therefore, the 

remedial amendment period rules of 

§ 1.401(b)–1 apply. For example, in the 

case of a plan with a calendar plan year 

that is maintained by an employer with 

a calendar taxable year (and the plan is 

not a governmental plan and is not 

maintained pursuant to a collective 

bargaining agreement), the plan’s 

remedial amendment period with 

respect to § 1.401(a)–1(b)(2) and (3) ends 

on the date prescribed by law for the 

filing of the employer’s income tax 

return (including extensions) for the 

2007 taxable year. 

In the case of a plan amendment that 

increases the plan’s normal retirement 

age pursuant to this regulation, the 

amendment may also eliminate a right 

to an in-service distribution prior to the 

normal retirement age under the plan as 

amended without violating section 

411(d)(6) if the amendment is adopted 

after May 22, 2007 and on or before the 

last day of the applicable remedial 

amendment period under § 1.401(b)–1 

with respect to the requirements of 

§ 1.401(a)–1(b)(2) and (3). For purposes 

of section 1107 of PPA ’06, such an 

amendment is not made pursuant to 

PPA ’06 and is not made pursuant to 

any regulation issued under PPA ’06. 

Special Analyses 

It has been determined that this 

Treasury Decision is not a significant 

regulatory action as defined in 

Executive Order 12866. Therefore, a 

regulatory assessment is not required. It 

also has been determined that section 

553(b) of the Administrative Procedure 

Act (5 U.S.C. chapter 5) does not apply 

to these regulations, and because the 

regulation does not impose a collection 

of information requirement upon small 

entities, the Regulatory Flexibility Act 

(5 U.S.C. chapter 6) does not apply. 

Pursuant to section 7805(f) of the 

Internal Revenue Code, the notice of 

proposed rulemaking preceding these 

regulations was submitted to the Small 

Business Administration for comment 

on its impact on small business. 

Drafting Information 

The principal authors of these 

regulations are Christopher A. Crouch 

(formerly of the Office of the Division 

Counsel/Associate Chief Counsel (Tax 

Exempt and Government Entities)), 

Cathy A. Vohs and Janet A. Laufer of the 

Office of the Division Counsel/Associate 

Chief Counsel (Tax Exempt and 

Government Entities). However, other 

personnel from the IRS and Treasury 

Department participated in their 

development. 

List of Subjects in 26 CFR Part 1 

Income taxes, Reporting and 

recordkeeping requirements. 

Adoption of Amendments to the 

Regulations 

■ Accordingly, 26 CFR part 1 is 

amended as follows: 

PART 1—INCOME TAXES 

■ Paragraph 1. The authority citation 

for part 1 is amended by adding an entry 

in numerical order to read in part as 

follows: 

Authority: 26 U.S.C. 7805 * * * 

Section 1.401(a)–1 also issued under 26 

U.S.C. 401. * * * 

■ Par. 2. Section 1.401(a)–1 is amended 

by: 

■ 1. Revising paragraph (b)(1)(i). 

■ 2. Adding paragraphs (b)(2), (b)(3), 

and (b)(4). 

■ The additions and revision read as 

follows: 

§ 1.401(a)–1 Post-ERISA qualified plans 

and qualified trusts; in general. 

* * * * * 

(b) * * * 

(1) * * * 

(i) In order for a pension plan to be 

a qualified plan under section 401(a), 

the plan must be established and 

maintained by an employer primarily to 

provide systematically for the payment 

of definitely determinable benefits to its 

employees over a period of years, 

usually for life, after retirement or 

attainment of normal retirement age 

(subject to paragraph (b)(2) of this 

section). A plan does not fail to satisfy 

this paragraph (b)(1)(i) merely because 

the plan provides, in accordance with 

section 401(a)(36), that a distribution 

may be made from the plan to an 

employee who has attained age 62 and 

who is not separated from employment 

at the time of such distribution. 

* * * * * 

(2) Normal retirement age—(i) 

General rule. The normal retirement age 

under a plan must be an age that is not 

earlier than the earliest age that is 

reasonably representative of the typical 

retirement age for the industry in which 

the covered workforce is employed. 

(ii) Age 62 safe harbor. A normal 

retirement age under a plan that is age 

62 or later is deemed to be not earlier 

than the earliest age that is reasonably 

representative of the typical retirement 

age for the industry in which the 

covered workforce is employed. 

(iii) Age 55 to age 62. In the case of 

a normal retirement age that is not 

earlier than age 55 and is earlier than 

age 62, whether the age is not earlier 

than the earliest age that is reasonably 

representative of the typical retirement 

age for the industry in which the 

covered workforce is employed is based 

on all of the relevant facts and 

circumstances. 

(iv) Under age 55. A normal 

retirement age that is lower than age 55 

is presumed to be earlier than the 

earliest age that is reasonably 

representative of the typical retirement 

age for the industry in which the 

covered workforce is employed, unless 

the Commissioner determines that 

under the facts and circumstances the 

normal retirement age is not earlier than 

the earliest age that is reasonably 

representative of the typical retirement 

age for the industry in which the 

covered workforce is employed. 

(v) Age 50 safe harbor for qualified 

public safety employees. A normal 

retirement age under a plan that is age 

50 or later is deemed to be not earlier 

than the earliest age that is reasonably 

representative of the typical retirement 

age for the industry in which the 

covered workforce is employed if 

substantially all of the participants in 


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Federal Register / Vol. 72, No. 98 / Tuesday, May 22, 2007 / Rules and Regulations 28607 

the plan are qualified public safety 

employees (within the meaning of 

section 72(t)(10)(B)). 

(3) Benefit distribution prior to 

retirement. For purposes of paragraph 

(b)(1)(i) of this section, retirement does 

not include a mere reduction in the 

number of hours that an employee 

works. Accordingly, benefits may not be 

distributed prior to normal retirement 

age solely due to a reduction in the 

number of hours that an employee 

works. 

(4) Effective date. Except as otherwise 

provided in this paragraph (b)(4), 

paragraphs (b)(2) and (3) of this section 

are effective May 22, 2007. In the case 

of a governmental plan (as defined in 

section 414(d)), paragraphs (b)(2) and (3) 

of this section are effective for plan 

years beginning on or after January 1, 

2009. In the case of a plan maintained 

pursuant to one or more collective 

bargaining agreements that have been 

ratified and are in effect on May 22, 

2007, paragraphs (b)(2) and (3) of this 

section do not apply before the first plan 

year that begins after the last of such 

agreements terminate determined 

without regard to any extension thereof 

(or, if earlier, May 24, 2010. See 

§ 1.411(d)–4, A–12, for a special 

transition rule in the case of a plan 

amendment that increases a plan’s 

normal retirement age pursuant to 

paragraph (b)(2) of this section. 

■ Par. 3. Section 1.411(d)–4 is amended 

by adding Q&A–12 as follows: 

§ 1.411(d)–4 Section 411(d)(6) protected 

benefits. 

* * * * * 

Q–12. Is there a transition period 

during which a plan is permitted to 

eliminate a right to in-service 

distributions in connection with an 

amendment to ensure that the plan’s 

normal retirement age satisfies the 

requirements of § 1.401(a)–1(b)(2)? 

A–12. (a) In general. A plan 

amendment that changes the normal 

retirement age under the plan to a later 

normal retirement age pursuant to 

§ 1.401(a)–1(b)(2) does not violate 

section 411(d)(6) merely because it 

eliminates a right to an in-service 

distribution prior to the amended 

normal retirement age. However, this 

paragraph does not provide relief from 

any other applicable requirements; for 

example, this relief does not permit the 

amendment to violate section 411(a)(9) 

(requiring that the normal retirement 

benefit not be less than the greater of 

any early retirement benefit payable 

under the plan or the benefit under the 

plan commencing at normal retirement 

age), section 411(a)(10) (if the 

amendment changes the plan’s vesting 

rules), section 411(d)(6) (other than 

elimination of the right to an in-service 

distribution prior to the amended 

normal retirement age), or section 4980F 

(relating to an amendment that reduces 

the rate of future benefit accrual). This 

paragraph only applies to a plan 

amendment that is adopted after May 

22, 2007 and on or before the last day 

of the applicable remedial amendment 

period under § 1.401(b)–1 with respect 

to the requirements of § 1.401(a)–1(b)(2) 

and (3). 

(b) Example. The following example 

illustrates the application of this 

section: 

(i) Facts. (A) Plan A is a defined benefit 

plan intended to be qualified under section 

401(a). Plan A is maintained by a calendar 

year taxpayer and has a normal retirement 

age that is age 45. For employees who cease 

employment before normal retirement age 

with a vested benefit, Plan A permits benefits 

to commence at any date after the attainment 

of normal retirement age through attainment 

of age 701⁄2 and provides for benefits to be 

actuarially increased to the extent they 

commence after normal retirement age. For 

employees who continue employment after 

attainment of normal retirement age, Plan A 

provides for benefits to continue to accrue 

and permits benefits to commence at any 

time, with an actuarial increase in benefits to 

apply to the extent benefits do not commence 

after normal retirement age. Age 45 is an age 

that is earlier than the earliest age that is 

reasonably representative of the typical 

retirement age for the industry in which the 

covered workforce is employed. 

(B) On February 18, 2008, Plan A is 

amended, effective May 22, 2007, to change 

its normal retirement age to the later of age 

65 or the fifth anniversary of participation in 

the plan. The amendment provides full 

vesting for any participating employee who 

is employed on May 21, 2007, and who 

terminates employment on or after attaining 

age 45. The amendment provides employees 

who cease employment before the revised 

normal retirement age and who are entitled 

to a vested benefit with the right to be able 

to commence benefits at any date from age 

45 to age 701⁄2. The plan amendment also 

revises the plan’s benefit accrual formula so 

that the benefit for prior service (payable 

commencing at the revised normal retirement 

age or any other age after age 45) is not less 

than would have applied under the plan’s 

formula before the amendment (also payable 

commencing at the corresponding dates), 

based on the benefit accrued on May 21, 

2007, and provides for service thereafter to 

have the same rate of future benefit accrual. 

Thus, for any participant employed on May 

21, 2007, with respect to benefits accrued for 

service after May 21, 2007, the amount 

payable under the plan (as amended) at any 

benefit commencement date after age 45 is 

the same amount that would have been 

payable at that benefit commencement date 

under the plan prior to amendment. The plan 

amendment also eliminates the right to an inservice distribution between age 45 and the 

revised normal retirement age. Plan A has 

been operated since May 22, 2007, in 

conformity with the amendment adopted on 

February 18, 2008. 

(ii) Conclusion. The plan amendment does 

not violate section 411(d)(6). Although the 

amendment eliminates the right to 

commence benefits in-service between age 45 

and the revised normal retirement age, the 

amendment is made before the last day of the 

remedial amendment period applicable to the 

plan under § 1.401(b)–1 with respect to the 

requirements of § 1.401(a)–1(b)(2) and (3), 

and therefore the amendment is permitted 

under paragraph (a) of this A–12. Further, the 

amendment does not result in a reduction in 

any benefit for service after May 22, 2007. 

Thus, the amendment does not result in a 

reduction in any benefit for future service, 

and advance notice of a significant reduction 

in the rate of future benefit accrual is not 

required under section 4980F. 

Kevin M. Brown, 

Deputy Commissioner for Services and 

Enforcement. 

Approved: May 9, 2007. 

Eric Solomon, 

Assistant Secretary of the Treasury (Tax 

Policy). 

[FR Doc. E7–9643 Filed 5–21–07; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 100 

[CGD05–07–020] 

RIN 1625–AA08 

Special Local Regulations for Marine 

Events; Delaware River, Delaware City, 

DE 

AGENCY: Coast Guard, DHS. 

ACTION: Temporary final rule. 

SUMMARY: The Coast Guard is 

establishing temporary special local 

regulations during the ‘‘7th Annual 

Escape from Fort Delaware Triathlon’’, 

an event to be held June 9, 2007 on the 

waters of Delaware River at Delaware 

City, DE. These special local regulations 

are necessary to provide for the safety of 

life on navigable waters during the 

event. This action will temporarily 

restrict vessel traffic in a portion of the 

Delaware River during the 7th Annual 

Escape from Fort Delaware Triathlon. 

DATES: This rule is effective from 5:30 

a.m. to 10:30 a.m. on June 9, 2007. 

ADDRESSES: Documents indicated in this 

preamble as being available in the 

docket, are part of docket (CGD05–07– 

020) and are available for inspection or 

copying at Commander (dpi), Fifth 

Coast Guard District, 431 Crawford 


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