Ballooning Out of Control LLC ("BLOC" or the "Company") is a manufacturer of hot air balloons. Due to decreased demand for hot air balloons and challenging industry conditions, BLOC's management is exploring ways to reduce the Company's rapidly rising compensation and benefit costs. Management has determined it will either: (1) amend the Company's single employer defined benefit pension plan by eliminating the future earning of pension benefits for 85% of its employees (i.e., freeze its pension plan) (2) reduce the headcount of eligible benefit pension plan employees by 1%. Either option will require approval by BLOC's board of directors. If BLOC decides to freeze its current pension plan, it will not offer any new pension benefits to its employees through another plan. BLOC's current pension plan is the only retirement benefit arrangement it provides to its employees. The plan's pension benefits are based on years of service and average salary for the last five years of the employee's service period, and all employees, both hourly and salaried, who have attained six months of service are participants in the pension plan. Under the plan freeze, the Company will eliminate the accrual of additional pension benefits for future service and will not take future salary increases into account in computing the average salary for the last five years before retirement when determining the pension benefits earned for services before the plan freeze. The pension plan freeze will be effective on October 1, the beginning of BLOC's next fiscal year, and is expected to be approved and communicated to employees prior to BLOC's September 30 year-end. If BLOC's management decides instead to reduce costs by reducing headcount by 1 percent, it anticipates that the board of directors would approve the reductions, and management would communicate its plans to the affected employees prior to September 30. Question: Determine whether each decision should be accounted for as a CURTAILMENT or a PLAN AMENDMENT. Ballooning Out of Control LLC ("BLOC" or the "Company") is a manufacturer of hot air balloons. Due to decreased demand for hot air balloons and challenging industry conditions, BLOC's management is exploring ways to reduce the Company's rapidly rising compensation and benefit costs. Management has determined it will either: (1) amend the Company's single employer defined benefit pension plan by eliminating the future earning of pension benefits for 85% of its employees (i.e., freeze its pension plan) (2) reduce the headcount of eligible benefit pension plan employees by 1%. Either option will require approval by BLOC's board of directors. If BLOC decides to freeze its current pension plan, it will not offer any new pension benefits to its employees through another plan. BLOC's current pension plan is the only retirement benefit arrangement it provides to its employees. The plan's pension benefits are based on years of service and average salary for the last five years of the employee's service period, and all employees, both hourly and salaried, who have attained six months of service are participants in the pension plan. Under the plan freeze, the Company will eliminate the accrual of additional pension benefits for future service and will not take future salary increases into account in computing the average salary for the last five years before retirement when determining the pension benefits earned for services before the plan freeze. The pension plan freeze will be effective on October 1, the beginning of BLOC's next fiscal year, and is expected to be approved and communicated to employees prior to BLOC's September 30 year-end. If BLOC's management decides instead to reduce costs by reducing headcount by 1 percent, it anticipates that the board of directors would approve the reductions, and management would communicate its plans to the affected employees prior to September 30. Question: Determine whether each decision should be accounted for as a CURTAILMENT or a PLAN AMENDMENT.