Section 3. Limitations Applicable If the Plan Sponsor is in Bankruptcy. Notwithstanding

any other provisions of the plan, a participant or beneficiary is not permitted to elect, and the plan shall not pay, a single sum payment or other optional form of benefit that includes a prohibited payment with an annuity starting date that occurs during any period in which the plan sponsor is a debtor in a case under title 11, United States Code, or similar Federal or State law, except for payments made within a plan year with an annuity starting date that occurs on or after the date on which the plan’s enrolled actuary certifies that the plan’s adjusted funding target attainment percentage for that plan year is not less than 100%. In addition, during such period in which the plan sponsor is a debtor, the plan shall not make any payment for the purchase of an irrevocable commitment from an insurer to pay benefits or any other payment or transfer that is a prohibited payment, except for payments that occur on a date within a plan year that is on or after the date on which the plan’s enrolled actuary certifies that the plan’s adjusted funding target attainment percentage for that plan year is not less than 100%. The limitation set forth in this Section 3 does not apply to any payment of a benefit which under Code § IRC 411(a)(11) may be immediately distributed without the consent of the participant.

For plan years beginning on or after January 1, 2015 (January 1, 2016 for plans maintained pursuant to one or more collectively bargained agreement), the adjusted funding target attainment percentage used to apply the special restrictions during bankruptcy must be determined without taking into account the interest rate stabilization provisions of Code § IRC 430(h)(2)(C)(iv).