A plan is changing from "high 5" to "high 5 in the last ten." There are definitely people who will end up with lower accruals because of this at NRA (we are preserving the existing accrued benefits). The "powers that be" are wanting to avoid the
204(h) notice and are requesting some citation defining "significant" in reference to "signficant reduction".

In the Q&A from the final regs 54.4980F-1: A8.(b) addresses "Application for determining signifcant reduction in the rate of future benefit accrual" it reads ..."the determination of whether an amendment provides for a significant reduction in the rate of future benefit accrual is made by comparing the amount of the annual benefit commencing at NRA, under the terms of the plan as amended with the amount of the annual benefit commencing at NRA under the terms prior to the amendment."

I interpret this as a "yes" or "no" test and if it's less with the amendment than without, you need the notice. Is there some other measure? Code citation?

Is this the same as your prior post?
http://benefitslink.com/boards/index.php?showtopic=37740

Yes, it's the same plan. The sponsor wants to retroactively amend the plan to the BOY, but since there seems to be a notice needed, I'm advising against it. Hence the request by the sponsor for the measure of "significant".