Model Plan Amendme Model Plan Amendment, Reinstatement

AMENDMENT TO THE
[NAME OF PLAN DOCUMENT]
TO REINSTATE SUSPENDED BENEFITS
Background
1. The Board of Trustees of the [PLAN NAME] (the “Board”) has applied to the Pension
Benefit Guaranty Corporation (“PBGC”) under section 4262 of the Employment
Retirement Income Security Act of 1974, as amended (“ERISA”), and 29 C.F.R. § 4262
for special financial assistance for the [PLAN NAME] (the “Plan”).
2. 29 C.F.R. §§ 4262.6(e)(2) and 4262.15(a) require that the plan sponsor of a plan that is
applying for special financial assistance and that suspended benefits under section
305(e)(9) or 4245(a) of ERISA amend the plan to reinstate such suspended benefits and
provide make-up payments in accordance with guidance issued by the Secretary of the
Treasury under section 432(k) of the Internal Revenue Code (which was issued in IRS
Notice No. 2021-38).
3. 29 C.F.R. § 4262.7(e)(2) requires that an application for special financial assistance for a
plan that suspended benefits under section 305(e)(9) or 4245(a) of ERISA include a copy
of the proposed plan amendment required under § 4262.6(e)(2) and certification by the
plan sponsor that the plan amendment will be timely adopted.
4. Benefits under the Plan have been suspended under [CHOOSE EITHER: ‘section
305(e)(9) of ERISA’ OR ‘section 4245(a) of ERISA due to plan insolvency’].
5. Under [REFERENCE TO APPROPRIATE PROVISION] of the [NAME AND DATE OF
CURRENT PLAN DOCUMENT] (the “Plan Document”), the Board has the power to
amend the Plan Document.
6. [INCLUDE ONLY IF LESS THAN THE ENTIRE BOARD OF TRUSTEES WILL BE
SIGNING:] Section [REFERENCE TO APPROPRIATE PROVISION] of the [NAME
AND DATE OF PLAN’S CURRENT TRUST DOCUMENT], as amended, authorizes
[DESCRIBE HOW TRUST DOCUMENT AUTHORIZES THE SIGNERS TO SIGN ON
BEHALF OF ENTIRE BOARD].
Amendment
The Plan Document is amended by adding a new [ARTICLE/SECTION #] to read as follows:
“i. Effective as of the first month in which special financial assistance is paid to the Plan,
the Plan shall reinstate all benefits that were suspended under section 305(e)(9) or
4245(a) of ERISA.
ii. The Plan shall pay each participant and beneficiary that is in pay status as of the date
special financial assistance is paid to the Plan the aggregate amount of their benefits that

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were not paid because of the suspension, with no actuarial adjustment or interest. Such
payment shall be made [choose whichever applies: ‘in a lump sum no later than 3
months after the date the special financial assistance is paid to the Plan, irrespective of
whether the participant or beneficiary dies after the date special financial assistance is
paid’ or ‘in equal monthly installments over a period of 5 years, commencing no later
than 3 months after the date the special financial assistance is paid to the Plan, with all
installments to be paid irrespective of whether the participant or beneficiary survives to
the end of the 5-year period’].”
[IN ACCORDANCE WITH 29 C.F.R. § 4262.7(e)(2), DO NOT EXECUTE OR DATE PRIOR TO
SUBMISSION OF SPECIAL FINANCIAL ASSISTANCE APPLICATION TO PBGC. INSERT
ONE SIGNATURE BLOCK FOR EACH TRUSTEE, EACH WITH A PRINTED NAME AND
TITLE:]
___________________________
[PRINTED NAME]
[TITLE]

___________________________
[PRINTED NAME]
[TITLE]

___________________________
[PRINTED NAME]
[TITLE]

___________________________
[PRINTED NAME]
[TITLE]

Date: [DATE OF EXECUTION]

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