Do we need to amend our plan to reflect Sec. 303 of PPA this year?

[Guest Benefitsrock]

Do we need to amend our DB plan to reflect Sec. 303 of the PPA's changes to the interest rates used in equivalency calculations this year? Section 303 amended Code Sec. 415(b)(2)(E)(ii) to change the rates used for converting certain forms of benefits to an equivalent straight life annuity. Sec. 303 of the PPA also is reflected in the final 415 regs, but the final 415 regs provide that if an amendment is made pursuant to the PPA, the plan can be amended as late as Dec. 31, 2009 (in the case of a calendar year plan), to reflect the change.

It has been suggested to me that we need to amend the plan now to reflect Sec. 303 of the PPA, but I would like confirmation that we don't have to amend. Thanks in advance for any responses!

[SoCalActuary]

For terminating plans - amend now.

For all others, administer the plan to avoid the possibility of violating the law, then amend with your 2009 deadline.