Section 11. If elected by the employer in section of the adoption agreement, the

provisions of sections 1.1 through 5 below will apply to adjust the frozen accrued benefit of each participant in the fresh-start group determined as of the latest fresh-start date under the plan, if, as of that date, the plan contained a benefit formula under which the participant’s accrued benefit could be determined with reference to compensation earned by the participant in years beginning after the latest fresh-start date occurring before the first plan year beginning on or after January 1, 1994. In the case of a Code § an IRC 412(e)(3) plan, the words “projected benefit” and “frozen projected benefit” will be substituted for “accrued benefit” and “frozen accrued benefit” respectively, wherever they appear in this section.

(Note to reviewer: The blank should be filled in with the plan section number corresponding to the adoption agreement language at the end of this LRM #25.)

Section 11.1. If a fresh-start group fails to satisfy the minimum coverage requirements of Code §I RC 410(b) for any plan year, the provisions of sections 1.1 through 5 will not apply for that year or any subsequent year.

A fresh-start group is deemed to satisfy the minimum coverage requirements of section Code § IRC 410(b) for any plan year if any one of the following requirements is satisfied:

(i) the fresh-start group satisfied the minimum coverage requirements of Code § IRC 410(b) for the first five plan years beginning after the fresh-start date;

(j) the fresh-start group satisfied the ratio percentage test of Treas. Regs. Reg. § 1.410(b)-2(b) (2) as of the fresh-start date;

(k) the fresh-start group consists of an acquired group of employees that satisfied the

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minimum coverage requirements of Code §I RC 410(b) (determined without regard to any of the special rules pertaining to certain dispositions or acquisitions provided in Code § IRC 410(b)(6)(C)) as of the fresh-start date; or

(l) the fresh-start date with respect to the freshstart group occurs before the first day of the first plan year beginning on or after January 1, 1994.

Section 11.2. Unit Credit Plans – With respect to plan years beginning after the latest freshstart date, the current benefit formula will provide each participant in the fresh-start group a benefit of not less than 0.5% of the participant’s average annual compensation times the participant’s years of service after the latest fresh-start date.

Section 11.3. Flat Benefit Plans – With respect to plan years beginning after the plan’s latest fresh-start date, the current benefit formula will provide each participant a benefit of not less than 25% of the participant’s average annual compensation. If a participant will have less than 50 years of service under the plan after the latest fresh-start date through the year the participant attains normal retirement age (or current age, if later), then such minimum percentage will be reduced by multiplying it by the following ratio:

participant’s years of service after the latest fresh-start date

50

Section 11.4. Cash Balance Plans – With respect to plan years beginning after the plan’s latest fresh-start date, the current benefit formula will provide each participant in the fresh-start group an accrued benefit in the form of an annuity of not less than 0.5% of the participant’s average annual compensation times the participant’s years of service after the latest fresh-start date.