Critical Status - Reductions to Adjustable Benefits

[luissaha]

A plan we work with will be in critical status effective 1/1/09. One issue we have been struggling with is reductions to adjustable benefits. It seems the trustees can reduce adjustable benefits for vested terminated participants without the agreement of the bargaining parties and the reductions can apply to all vested terminated participants whose benefit commencement dates were after the date the actuary certifies that the plan is in critical status. What about active participants? It seems for participants who are active on the date the actuary certifies critical status the plan has to wait until their employers adopt a schedule or the deafault schedule is imposed before adjustable benefits can be reduced. Is this correct? What does the plan do with active participants who retire after the actuary certifies critical status but before the plan adopts a rehabilitation plan? Are these participants treated as active participants or as vested terms?