CBA and Restrictions When Plan Year and CBA Year Are Differnt

[Guest merlin]

I have plan sponsored by single employer for its union employees, so the benefits are set by the CBA, but it's not a multiemployer plan. The CBA signed prior to 1/1/08 covered the period 4/1/05-3/31/08. The plan runs on a calendar year.

Plan years beginning before the ealier of the later of (3/31/08 and 1/1/08) and 1/1/10 are exempt from the restriction rules, so the first plan year to which the restrictions apply is the year beginning 1/1/09. Agreed?

The new CBA effective 4/1/08 increases the benefit. Assuming the 1/1/09 date is correct, and that the benefit increase does not meet the exception under 1.436-1©(3), what happens to the benefit level at 1/1/09 if the AFTAP is < 80%?