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TITLE 26-INTERNAL REVENUE CODE tended by the Secretary of Labor for a period of time (not in excess of 10 years) if he deter- mines that such extension would carry out the purposes of the Employee Retirement Income Security Act of 1974 and would provide ade- quate protection for participants under the plan and their beneficiaries and if he deter. mines that the failure to permit such extension would- (1) result in- (A) a substantial risk to the voluntary continuation of the plan, or (B) a substantial curtailment of pension benefit levels or employee compensation, and (2) be adverse to the interests of plan par- ticipants in the aggregate. (f) Benefits may not be increased during waiver or extension period (1) In general No amendment of the plan which increases the liabilities of the plan by reason of any in- crease in benefits, any change in the accrual of benefits, or any change in the rate at which benefits become nonforfeitable under the plan shall be adopted if a waiver under subsection (d)(1) or an extension of time under subsection (e) is in effect with respect to the plan, or if a plan amendment described in subsection (c)(8) has been made at any time in the preceding 12 months (24 months for multiemployer plans). If a plan is amend- ed in violation of the preceding sentence, any such waiver or extension of time shall not apply to any plan year ending on or after the date on which such amendment is adopted. (2) Exception Paragraph (1) shall not apply to any plan amendment which- (A) the Secretary of Labor determines to be reasonable and which provides for only de minimis increases in the liabilities of the plan. (B) only repeals an amendment described in subsection (c)(8), or (C) is required as a condition of qualifica- tion under this part. (g) Alternative minimum funding standard (1) In general A plan which uses a funding method that requires contributions in all years not less than those required under the entry age normal funding method may maintain an al- ternative minimum funding standard account for any plan year. Such account shall be cred- ited and charged solely as provided in this subsection. (2) Charges and credits to account For a plan year the alternative minimum funding standard account shall be- (A) charged with the sum of- (1) the lesser of normal cost under the funding method used under the plan or normal cost determined under the unit credit method, (i) the excess, if any, of the present value of accrued benefits under the plan over the fair market value of the assets, and (ili) an amount equal to the excess (if any) of credits to the alternative mini- mum standard account for all prior plan years over charges to such account for all such years, and (B) credited with the amount considered contributed by the employer to or under the plan for the plan year. (3) Special rules The alternative minimum funding standard account (and items therein) shall be charged or credited with interest in the manner pro- vided under subsection (b)(5) with respect to the funding standard account. (h) Exceptions This section shall not apply to- (1) any profit-sharing or stock bonus plan, (2) any insurance contract plan described in subsection (i), (3) any governmental plan (within the meaning of section 414(d)), (4) any church plan (within the meaning of section 414(e)) with respect to which the elec- tion provided bj section 410(d) has not been made, (5) any plan which has not, at any time after September 2, 1974, provided for employ- er contributions, or (6) any plan established and maintained by a society, order, or association described in section 501(c)(8) or (9), if no part of the con- tributions to or under such plan are made by employers of participants in such plan. No plan described in paragraph (3), (4), or (6) shall be treated as a qualified plan for purposes of section 401(a) unless such plan meets the re- quirements of section 401(a)(7) as in effect on September 1, 1974. (I) Certain insurance contract plans A plan is described in this subsection if- (1) the plan is funded exclusively by the purchase of individual insurance contracts. (2) such contracts provide for level annual premium payments to be paid extending not later than the retirement age for each indi- vidual participating in the plan, and com- mencing with the date the individual became a participant in the plan (or, in the case of an increase in benefits, commencing at the time such increase becomes effective), (3) benefits provided by the plan are equal to the benefits provided under each contract at normal retirement age under the plan and are guaranteed by an insurance carrier (li- censed under the laws of a State to do busi- ness with the plan) to the extent premiums have been paid, (4) premiums payable for the plan year, and all prior plan years, under such contracts have been paid before lapse or there is rein- statement of the policy, (5) no rights under such contracts have been subject to a security interest at any time during the plan year, and (6) no policy loans are outstanding at any time during the plan year. A plan funded exclusively by the purchase of group insurance contracts which is determined under regulations prescribed by the Secretary to have the same characteristics as contracts Page 335