Short plan year and grace period

[Guest cshade]

If an employer is going to change their plan year, will a grace period still apply to the short plan year? For example, the current plan year is June 1 - May 31, with a 2 1/2 month grace period. The employer changes the plan year to December 1 - November 30, so the short plan year is June 1 - November 30. Can a grace period still be added to this short plan year?

I can't find anything specifc to this in the EBIA manual. Thanks for any guidance.