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As previously reported, many defined benefit pension plan sponsors have frozen their plans because of significant volatility in the funding requirements and other burdens associated with such plans. These freezes can be "hard" freezes where both eligibility and benefit accruals are frozen, or "soft" freezes where just eligibility is frozen - that is, no new participants, but some or all existing participants, continue to accrue benefits. Because benefits continue to accrue under soft frozen plans, such plans must continue to satisfy all of the qualification requirements under the Code, including the minimum participation and nondiscrimination requirements.
The nondiscrimination requirements generally become more difficult to satisfy...