SECTION 5. PLAN SPONSOR

DETERMINATION RELATING TO REASONABLE MEASURES TAKEN TO AVOID INSOLVENCY

With respect to the plan sponsor’s determination required under section 3.03 of this revenue procedure that the plan is projected to become insolvent unless benefits are suspended, the application must include the following information:

.01 Measures taken to avoid insol- vency . A detailed description of measures taken in order to avoid insolvency over the past 10 plan years immediately preceding the plan year in which the application is submitted. .02 Plan factors . In accordance with § 432(e)(9)(C)(ii), the following specific information with respect to the plan:

(1) For the past 10 plan years im mediately preceding the plan year in which the application is submitted: (a) Contribution levels. (b) Levels of benefit accruals,

including any prior reductions in the rate of benefit accruals. (c) Prior reductions, if any, of

adjustable benefits under § 432(e)(8). (d) Any prior suspension of benefits under § 432(e)(9). (e) Measures undertaken by the

plan sponsor to retain or attract contributing employers. (2) The impact on plan solvency of

the subsidies and ancillary benefits, if any, available to active participants. (3) Compensation levels of active

participants relative to employees in the participants’ industry generally. (4) Competitive and other economic

factors facing contributing employers. .03 How plan factors were taken into account . For each of the factors listed under section 5.02 of this revenue procedure and the factors described in § 432(e)(9)(C)(ii)(VIII) (the impact of benefit and contribution levels on retaining active participants and bargaining groups under the plan) and

§ 432(e)(9)(C)(ii)(IX) (the impact of past and anticipated contribution increases under the plan on employer attrition and retention levels), the application must describe how that factor was taken into account (or why that factor was not taken into account) in the plan sponsor’s determination that all reasonable measures have been taken to avoid insolvency. .04 Other factors considered . If the plan sponsor considered any other factors, then the application must discuss how and why that factor was taken into account in the plan sponsor’s determination that all reasonable measures have been taken to avoid insolvency.