Elimination of ESOP dividends invoke 411(d)(6)?

[Guest RW]

A 401(k) Savings Plan has a non-leveraged ESOP portion which is made up of an old PAYSOP. If the dividends were distributed to participants under that portion of the plan on an annual basis, would eliminating dividend payments (and instead reinvesting the paymens) raise any 411(d)(6) issues? How does this square with the 411(d)(6) rules on stock distributions?

[RLL]

RW ---

IRC section 411(d)(6)© allows an ESOP to modify distribution options on a nondiscriminatory basis. It appears that this ESOP exception to the general "anti-cutback" rule should allow a plan amendment which eliminates dividend distributions. Why not propose an amendment to the plan and apply for an IRS determination letter?