Restoration of Benefit Accruals

We might take over a 1 participant DB plan. The plan is in its ninth year.

The plan has adequate assets to pay all benefit liabilities. Looks like it always has. The problem is that no AFTAP was ever done. So benefit accruals are frozen for years 6,7 and 8. If we get the current AFTAP timely signed, it is at 122%. If this is done, are all prior benefit accruals (from years 6,7 and 8 automatically restored?

Thanks.

Look at the 436 provisions in the document/AA. From this it doesn't look like you can go back that far and may need an amendment.

From IRS Publication 5139:

Line c. The plan may provide that benefit accruals that were not permitted to accrue because of the limitation of section 436(e)(1) (described in line IV.d. of the worksheet) shall be automatically restored when that limitation ceases to apply if the continuous period of the limitation was 12 months or less and the plan’s enrolled actuary certifies that the AFTAP for the plan year would not be less than 60 percent taking into account any restored benefit accruals for the prior plan year. 436(i) 1.436-1(a)(4), 1.436 1(c)(3)

https://www.irs.gov/pub/irs-pdf/p5139.pdf

The interest of clarity and good documentation is always appropriate.  Do an amendment, whether or not required.