SECTION 6. RESTRICTIONS ON

USE OF AUTOMATIC APPROVAL UNDER THIS REVENUE PROCEDURE

.01 This revenue procedure does not apply unless the plan administrator (within the meaning of § 414(g)) or an authorized representative of the plan sponsor indicates on the Form 5500 series return filed for the plan for the plan year for which the change is effective that the plan administrator or plan sponsor agrees to the change in funding method. In the case of special approval for a change in funding method described in section 4 of this revenue procedure (other than the approval for fully funded terminating plans in section 4.04 of this revenue procedure), and approval for a change in funding

method in connection with plan mergers described in section 5 of this revenue procedure, the requirement that the plan administrator or authorized representative of the plan sponsor agree to the change is satisfied if the plan administrator or an authorized representative of the plan sponsor is made aware of the change before the Schedule SB is filed (or, in the case of a plan for which Schedule SB is not required to be filed, by the time the Schedule SB is delivered to the employer).

.02 This revenue procedure does not apply for a plan year of a plan if a minimum funding waiver under § 412(c) has been granted and there is a waiver amortization charge for the plan year or a future year, or a plan sponsor has applied for a funding waiver under § 412(c) for the plan and the waiver application is pending.

.03 This revenue procedure does not apply if the plan is under an Employee Plans examination for any plan year, or if the plan sponsor, or a representative, has received verbal or written notification from the Tax Exempt and Government Entities Division of an impending Employee Plans examination, or of an impending referral from another part of the IRS for an Employee Plans examination, or if the plan has been under such an examination and is in Appeals or in litigation for issues raised in an Employee Plans examination.

.04 This revenue procedure does not apply if the change in funding method is being made in connection with a plan merger (unless the change is made as provided in sections 5.01 through 5.03 of this revenue procedure) or in connection with a plan spin-off.

.05 This revenue procedure does not apply if the change in funding method is being made in connection with a plan merger if any of the following conditions apply:

(1) The adjusted funding target attainment percentages (AFTAPs), as defined in § 436(j), immediately before the plan merger, are not within the same range for all of the plans to be merged. For this purpose:

(a) The AFTAPs are the AFTAPs that have been certified as provided in § 1.436– 1(h)(4) for the plan year of the change (or if

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no certification has been made, the presumed AFTAPs for the year of change). However, if no certification for the preceding year was issued during the preceding plan year, the deemed percentage continues as described in § 1.436–1(h)(1)(iii).

(b) The ranges are the ranges described in § 1.436–1(h)(4)(ii) (less than 60%, at least 60% but less than 80%, 80% or higher, or 100% or higher), except that an AFTAP of 80% or higher is treated as being in the same range as an AFTAP of 100% or higher. (2) As of the most recent valuation date for each of the plans, one of the plans involved in the plan merger has a funding shortfall described in § 430(c)(4) and another of the plans involved in the plan merger does not have a funding shortfall.

(3) The asset valuation method is being changed and the asset valuation method was changed in any of the four preceding plan years for any of the plans involved in the merger.

(4) The valuation date is being changed and the valuation date was changed in either of the two preceding plan years for any of the plans involved in the merger.

.06 Except as provided in section 4.04 of this revenue procedure, this revenue procedure does not apply to a change that is made for a plan year in which the plan is terminated.

.07 This revenue procedure does not apply to a change that is made for a plan for which an election has been made pursuant to section 402(a) of the Pension Protection Act of 2006, Pub. L. 109–280 (120 Stat. 780) (including a change involving a merger of such a plan with a plan that has not made such an election).