3767. What special rules are related to the anti-cutback rule?Nuco Employeercline212010-08-24T19:50:00Z2014-08-17T14:02:00Z2014-08-17T14:02:00Z12061180Summit Business Media92138414Site Map/Retirement Plans/Pension And Profit Sharing/Qualification/Vesting411(d)(6) protected benefits2005-01-25T00:00:00ZTaxFactsDefaultArticle115970335-00-tf1.xml337.00;#2257;#0x010100C568DB52D9D0A14D9B2FDCC96666E9F2007948130EC3DB064584E219954237AF3900242457EFB8B24247815D688C526CD44D009C4E67E972694125ABDA91AC61F5E51FTax Facts 1What is the anti-cutback rule and what benefits does it protect?117700.000000000TaxFactsDefaultArticleSBMEDIA\moss-admin2010-01-15T00:44:42Z3767. What special rules are related to the anti-cutback rule?Plans subject to the funding standards of ERISA Section 302 (generally, defined benefit plans, money purchase pensions and target benefit plans), must meet a notice requirement if the plan is amended in a manner that significantly reduces the participants’ rate of future benefit accruals.ERISA Sec. 204(h).Under limited circumstances, a retroactive plan amendment reducing benefits may be available in the case of a substantial business hardship where it is determined that a waiver of the minimum funding standard (Q 3674) is unavailable or inadequate.IRC Sec. 412(d)(2). Among the factors the IRS will consider in determining whether a substantial business hardship exists are whether: (1)the employer is operating at an economic loss, (2)there is substantial unemployment or underemployment in the trade or business and the industry concerned, (3)the sales and profits of the industry are depressed or declining, and (4)it is reasonable to expect that the plan will be continued only if the waiver is granted.IRC Sec. 412(c)(2). The IRS permitted such an amendment to a plan whose sponsor was insolvent and expected no additional revenues, but the plan’s only participants and the sponsor’s only employees were the five owners of the business.See Let. Rul. 9736044.