OK to add a year end employment requirement?

[Guest Phil L.]

Is it permissible to amend a profit sharing plan right now to add a year end employment requirement for the current plan year that ends on 12/31/00? The regs under Section 411(d) seem to refer to cutting back benefits that have already accrued. I thought I heard or read somewhere that this couldn't be done for a plan subject to Section 412 but it could be done for a PS plan. Any thoughts, cites, opinions are welcomed.

[actuarysmith]

If your plan currently requires 501 hours for accrual (as most standardized prototypes)or 1,000 hours for accrual (as most non-standardized prototypes), then you have already passed the point in the year in which participants have accrued the benefits.

Therefore, you cannot amend to an EOY employment requirement until the 2001 plan year (provided it is timely).

The fact that it is a DB or DC plan is irrelevant.....

[PMC]

Similar question to the original - what if the plan has a last day requirement now but wants to amend during the current plan year to add 1000 hours too? Would this be permissable since no one has accrued the right to the contribution until the last day anyway?

[Guest Phil L.]

Thanks for your reply Actuarysmith. Can you give me a cite or point me to the source of that rule / requirement? Thanks.