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https://www.irs.gov/pub/irs-drop/n-07-07.pdf

Section 303(a) of PPA ’06 amended § 415(b)(2)(E)(ii) to provide that the interest
rate assumption for purposes of adjusting a benefit payable in a form that is subject to
the minimum present value requirements of § 417(e)(3) must not be less than the
greatest of (i) 5.5%, (ii) the rate that provides a benefit of not more than 105% of the
benefit that would be provided if the applicable interest rate (as defined in § 417(e)(3))
were the interest rate assumption, or (iii) the rate specified under the plan. 

This situation may refer to PFEA.

Does anyone recall if an eligible employer stands as free of prong (iii)? Eligible Employer defined per § 408. 

http://uscode.house.gov/view.xhtml?req=(title:26%20section:408%20edition:prelim)%20OR%20(granuleid:USC-prelim-title26-section408)&f=treesort&edition=prelim&num=0&jumpTo=true#substructure-location_p_2

The term "eligible employer" means, with respect to any year, an employer which had no more than 100 employees who received at least $5,000 of compensation from the employer for the preceding year.

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I do. It is not. 

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