SECTION 8. MINIMUM FUNDING

REQUIREMENTS

Section 412 provides minimum funding standards applicable to pension plans that are or were qualified plans under § 401. Section 1.412(c)(3)–1 provides rules concerning the reasonable funding methods for defined benefit pension plans.

Section 1.412(c)(3)–1(d)(1)(i) provides that, except as provided by the Commissioner, a reasonable funding method does not anticipate changes in plan benefits that become effective, whether or not retroactively, in a future plan year or that become effective during a plan year but after the first day thereof. Section 412(c)(12), which was added by GATT, provides that the funding method of a collectively bargained plan described in § 413(a) (other than a multiemployer plan) must anticipate benefit increases scheduled to take effect during the term of the collective bargaining agreement applicable to the plan. Therefore, except to the extent required by § 412(c)(12) or as otherwise provided by the Commissioner, in determining the minimum funding standards for a defined benefit plan under § 412, amendments that become effective, whether or not retroactively, in a future plan year may not be anticipated, even though the amendments are made before the end of any applicable remedial amendment period. Contributions to a defined benefit plan will be deductible subject to the limitations of § 404, with the § 412 minimum funding standards determined without anticipating such future amendments.