436 restrictions

[Guest JM123]

In applying the restriction against lump sums while sponsor is in bankruptcy (no lump sum unless at least 100%), if a plan is 98%, but is 105% under the deemed election, does the actuary certify 105%, so as to prevent a lump sum restriction in case the sponsor enters bankruptcy that year? Or would another certification be required after the restriction trigger, or would the certification at 98% be adjusted (and if so, by who?)

I am thinking that the original certification would be at 105%, but the answer is not crystal clear under the Code or prop regs.