Frozen defined benefit plan and IRC Section 436

[holdco]

Hello everyone! Hopefully a question someone has already run across. We have a frozen defined benefit plan, 300 participants, amended via VCP to fully comply with PPA 2006, GUST, EGTRRA, PFEA 2004, HART 2008, WREA 2008, etc. The IRS released a model section 436 amendment in the case of underfunded plans at the end of 2011. Our plan is already frozen, and contains benefit restriction provisions applicable to plan years beginning as of January 1, 2008. However, they precede the 2011 Notice with the model provision.

Does this model language apply to frozen plans? If so, does all of it?

The Notice contains this language: The limitations on prohibited payments set forth in Sections 1(a), 2(a), and 3 do not apply for a plan year if the terms of the plan, as in effect for the period beginning on September 1, 2005, and continuing through the end of the plan year, provide for no benefit accruals with respect to any participants. This Section 7(b)(iii) shall cease to apply as of the date any benefits accrue under the plan or the date on which a plan amendment that increases benefits takes effect.

Does the language mean the model language does not apply? Should it be inserted anyway? Any thoughts or comments would be greatly appreciated. Thanks so much!