If a plan is less than 60 percent funded in any year, employees will not earn any pension benefits for that year even though they continue working in jobs covered by the plan. At retirement, the employees will receive the benefits they earned up to the point when the benefit accruals stopped. Employers can reinstate benefit accruals by making contributions to the pension fund that bring the funding level above 60 percent.
Read about the other benefit restrictions:
Payment of lump sums and other “accelerated benefits”
Improvements in benefits
Shutdown benefits
Return to the fact sheet on benefit cutbacks in single employer plans.