§ 412. Minimum funding standards

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1974

   Employee Retirement Income Security Act of 1974

   Pub. L. 93–406 title II § 1013(a) · 88 Stat. 829

   Enacted · 26 U.S.C. § 412

   Added Pub. L. 93–406, title II, § 1013(a), Sept. 2, 1974, 88 Stat. 914

   Source evidence

   Code source credit
   Added Pub. L. 93–406, title II, § 1013(a), Sept. 2, 1974, 88 Stat. 914

   Enacted provision · exact public law section
   (a) In General.— Subpart B of part I of subchapter D of chapter 1 is amended by adding after section 411 the following new section: “SEC. 412. MINIMUM FUNDING STANDARDS. “(a) General Rule.— Except as provided in subsection (h), this section applies to a plan if, for any plan year beginning on or after the effective date of this section for such plan— “(1) such plan included a trust which qualified (or was determined by the Secretary or his delegate to have qualified) under section 401(a), or 26 USC 401. “(2) such plan satisfied (or was determined by the Secretary or his delegate to have satisfied) the requirements of section 403(a) or 405(a). Post, pp. 969, 991. A plan to which this section applies shall have satisfied the minimum 26 USC 405. funding standard for such plan for a plan year if as of the end of such plan year, the plan does not have an accumulated funding deficiency. For purposes of this section and section 4971, the term ‘accumulated “Accumulated funding deficiency.” Post, p. 920. funding deficiency’ means for any plan the excess of the total charges to the funding standard account for all plan years (beginning with the first plan year to which this section applies) over the total credits to such account for such years or, if less, the excess of the total charges to the alternative minimum funding standard account for such plan years over the total credits to such account for such years. “(b) Funding Standard Account.— “(1) Account required.— Each plan to which this section applies shall establish and maintain a funding standard account. Such account shall be credited and charged solely as provided in this section. “(2) Charges to account.— For a plan year, the funding standard account shall be charged with the sum of— “(A) the normal cost of the plan for the plan year, “(B) the amounts necessary to amortize in equal annual installments (until fully amortized)— “(i) in the case of a plan in existence on January 1, 1974, the unfunded past service liability under the plan on the first day of the first plan year to which this section applies, over a period of 40 plan years, “(ii) in the case of a plan which comes into existence after January 1, 1974, the unfunded past service liability under the plan on the first day of the first plan year to which this section applies, over a period of 30 plan years (40 plan years in the case of a multiemployer plan), “(iii) separately, with respect to each plan year, the net increase (if any) in unfunded past service liability under the plan arising from plan amendments adopted in such year, over a period of 30 plan years (40 plan years in the case of a multiemployer plan), “(iv) separately, with respect to each plan year, the net experience loss (if any) under the plan, over a period of 15 plan years (20 plan years in the case of a multiemployer plan), and “(v) separately, with respect to each plan year, the net loss (if any) resulting from changes in actuarial assumptions used under the plan, over a period of 30 plan years, “(C) the amount necessary to amortize each waived funding deficiency (within the meaning of subsection (d)(3)) for each prior plan year in equal annual installments (until fully amortized) over a period of 15 plan years, and “(D) the amount necessary to amortize in equal annual installments (until fully amortized) over a period of 5 plan years any amount credited to the funding standard account under paragraph (3)(D). “(3) Credits to account.— For a plan year, the funding standard account shall be credited with the sum of— “(A) the amount considered contributed by the employer to or under the plan for the plan year, “(B) the amount necessary to amortize in equal annual installments (until fully amortized)— “(i) separately, with respect to each plan year, the net decrease (if any) in unfunded past service liability under the plan arising from plan amendments adopted in such year, over a period of 30 plan years (40 plan years in the case of a multiemployer plan), “(ii) separately, with respect to each plan year, the net experience gain (if any) under the plan, over a period of 15 plan years (20 plan years in the case of a multiemployer plan), and “(iii) separately, with respect to each plan year, the net gain (if any) resulting from changes in actuarial assumptions used under the plan, over a period of 30 plan years, “(C) the amount of the waived funding deficiency (within the meaning of subsection (d)(3)) for the plan year, and “(D) in the case of a plan year for which the accumulated funding deficiency is determined under the funding standard account if such plan year follows a plan year for which such deficiency was determined under the alternative minimum funding standard, the excess (if any) of any debit balance in the funding standard account (determined without regard to this subparagraph) over any debit balance in the alternative minimum funding standard account. “(4) Combining and offsetting amounts to be amortized.— Under regulations prescribed by the Secretary or his delegate, amounts required to be amortized under paragraph (2) or paragraph (3), as the case may be— “(A) may be combined into one amount under such paragraph to be amortized over a period determined on the basis of the remaining amortization period for all items entering into such combined amount, and “(B) may be offset against amounts required to be amortized under the other such paragraph, with the resulting amount to be amortized over a period determined on the basis of the remaining amortization periods for all items entering into whichever of the two amounts being offset is the greater. “(5) Interest.— The funding standard account (and items therein) shall be charged or credited (as determined under regulations prescribed by the Secretary or his delegate) with interest at the appropriate rate consistent with the rate or rates of interest used under the plan to determine costs. “(c) Special Rules.— “(1) Determinations to be made under funding method.— For purposes of this section, normal costs, accrued liability, past service liabilities, and experience gains and losses shall be determined under the funding method used to determine costs under the plan. “(2) Valuation of assets.— “(A) In general.— For purposes of this section, the value of the plan’s assets shall be determined on the basis of any reasonable actuarial method of valuation which takes into account fair market value and which is permitted under regulations prescribed by the Secretary or his delegate. “(B) Election with respect to bonds.— The value of a bond or other evidence of indebtedness which is not in default as to principal or interest may, at the election of the plan administrator, be determined on an amortized basis running from initial cost at purchase to par value at maturity or earliest call date. Any election under this subparagraph shall be made at such time and in such manner as the Secretary or his delegate shall by regulations provide, shall apply to all such evidences of indebtedness, and may be revoked only with the consent of the Secretary or his delegate. “(3) Actuarial assumptions must be reasonable.— For purposes of this section, all costs, liabilities, rates of interest, and other factors under the plan shall be determined on the basis of actuarial assumptions and methods which, in the aggregate, are reasonable (taking into account the experience of the plan and reasonable expectations) and which, in combination, offer the actuary’s best estimate of anticipated experience under the plan. “(4) Treatment of certain changes as experience gain or loss.— For purposes of this section, if— “(A) a change in benefits under the Social Security Act 42 USC 1305. or in other retirement benefits created under Federal or State law, or “(B) a change in the definition of the term ‘wages’ under section 3121, or a change in the amount of such wages taken 26 USC 3121. 26 USC 401. into account under regulations prescribed for purposes of section 401(a)(5), results in an increase or decrease in accrued liability under a plan, such increase or decrease shall be treated as an experience loss or gain. “(5) Change in funding method or in plan year requires approval.— If the funding method for a plan is changed, the new funding method shall become the funding method used to determine costs and liabilities under the plan only if the change is approved by the Secretary or his delegate. If the plan year for a plan is changed, the new plan year shall become the plan year for the plan only if the change is approved by the Secretary or his delegate. “(6) Full funding.— If, as of the close of a plan year, a plan would (without regard to this paragraph) have an accumulated funding deficiency (determined without regard to the alternative minimum funding standard account permitted under subsection (g)) in excess of the full funding limitation— “(A) the funding standard account shall be credited with the amount of such excess, and “(B) all amounts described in paragraphs (2) (B), (C), and (D) and (3)(B) of subsection (b) which are required to be amortized shall be considered fully amortized for purposes of such paragraphs. “(7) Full funding limitation.— For purposes of paragraph (6), the term ‘full funding limitation’ means the excess (if any) of— “(A) the accrued liability (including normal cost) under the plan (determined under the entry age normal funding method if such accrued liability cannot be directly calculated under the funding method used for the plan), over “(B) the lesser of the fair market value of the plan’s assets or the value of such assets determined under paragraph (2). “(8) Certain retroactive plan amendments.— For purposes of this section, any amendment applying to a plan year which— “(A) is adopted after the close of such plan year but no later than 2 and one-half months after the close of the plan year (or, in the case of a multiemployer plan, no later than 2 years after the close of such plan year), “(B) does not reduce the accrued benefit of any participant determined as of the beginning of the first plan year to which the amendment applies, and “(C) does not reduce the accrued benefit of any participant determined as of the time of adoption except to the extent required by the circumstances, shall, at the election of the plan administrator, be deemed to have been made on the first day of such plan year. No amendment Notifiction of amendment. described in this paragraph which reduces the accrued benefits of any participant shall take effect unless the plan administrator files a notice with the Secretary of Labor notifying him of such amendment and the Secretary of Labor has approved such amendment, or within 90 days after the date on which such notice was filed, failed to disapprove such amendment. No Approval. amendment described in this subsection shall be approved by the Secretary of Labor unless he determines that such amendment is necessary because of a substantial business hardship (as determined under subsection (d)(2)) and that a waiver under subsection (d)(1) is unavailable or inadequate. “(9) 3-year valuation.— For purposes of this section, a determination of experience gains and losses and a valuation of the plan’s liability shall be made not less frequently than once every 3 years, except that such determination shall be made more frequently to the extent required in particular cases under regulations prescribed by the Secretary or his delegate. “(10) Time when certain contributions deemed made.— For purposes of this section, any contributions for a plan year made by an employer after the last day of such plan year, but not later than two and one-half months after such day, shall be deemed to have been made on such last day. For purposes of this paragraph, such two and one-half month period may be extended for not more than six months under regulations prescribed by the Secretary or his delegate. “(d) Variance From Minimum Funding Standard.— “(1) Waiver in case of substantial business hardship.— If an employer or in the case of a multiemployer plan, 10 percent or more of the number of employers contributing to or under the plan, are unable to satisfy the minimum funding standard for a plan year without substantial business hardship and if application of the standard would be adverse to the interests of plan participants in the aggregate, the Secretary or his delegate may waive the requirements of subsection (a) for such year with respect to all or any portion of the minimum funding standard other than the portion thereof determined under subsection (b)(2)(C). The Secretary or his delegate shall not waive the mini-mum funding standard with respect to a plan for more than 5 of any 15 consecutive plan years. “(2) Determination of substantial business hardship.— For purposes of this section, the factors taken into account in determining substantial business hardship shall include (but shall not be limited to) whether or not— “(A) the employer is operating at an economic loss, “(B) there is substantial unemployment or underemployment in the trade or business and in the industry concerned, “(C) the sales and profits of the industry concerned are depressed or declining, and “(D) it is reasonable to expect that the plan will be continued only if the waiver is granted. “(3) Waived funding deficiency.— For purposes of this section, the term ‘waived funding deficiency’ means the portion of the minimum funding standard (determined without regard to subsection (b)(3)(C)) for a plan year waived by the Secretary or his delegate and not satisfied by employer contributions. “(e) Extension of Amortization Periods.— The period of years required to amortize any unfunded liability (described in any clause of subsection (b)(2)(B)) of any plan may be extended by the Secretary of Labor for a period of time (not in excess of 10 years) if he determines that such extension would carry out the purposes of the Employee Retirement Income Security Act of 1974 and would provide Ante, p. 829. adequate protection for participants under the plan and their beneficiaries and if he determines 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 participants 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 increase 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 amended 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 qualification 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 alternative minimum funding standard account for any plan year. Such account shall be credited 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— “(i) the lesser of normal cost under the funding method used under the plan or normal cost determined under the unit credit method, “(ii) the excess, if any, of the present value of accrued benefits under the plan over the fair market value of the assets, and “(iii) an amount equal to the excess (if any) of credits to the alternative minimum 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 provided 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)), Post, p. 925. “(4) any church plan (within the meaning of section 414(e)) with respect to which the election provided by section 410(d) Ante, p. 898. has not been made, “(5) any plan which has not, at any time after the date of the enactment of the Employee Retirement Income Security Act of 1974, provided for employer contributions, or Ante, p. 829. “(6) any plan established and maintained by a society, order, or association described in section 501(c) (8) or (9), if no part of 26 USC 501. the contributions 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 26 USC 401. the requirements of section 401(a)(7) as in effect on the day before the date of the enactment of the Employee Retirement Income Security Act of 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 individual participating in the plan, and commencing 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 (licensed under the laws of a State to do business 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 reinstatement 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 or his delegate to have the same characteristics as contracts described in the preceding sentence shall be treated as a plan described in this subsection.”

2. 1976

   Pub. L. 94–455 § 1906(b)(13)(A) · 90 Stat. 1520

   Struck · 26 U.S.C. § 412(a)(d)

   Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”

   Source evidence

   Code amendment note
   Subsecs. (a) to (d). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.

   Enacted provision · exact public law section
   (A) The Internal Revenue Code of 1954, as amended by this Act, is amended by striking out “Secretary or his delegate” each place it appears and inserting in lieu thereof “Secretary”.

3. 1976

   Pub. L. 94–455 § 1901(a)(63) · 90 Stat. 1520

   1. Substituted · 26 U.S.C. § 412(h)

      Pub. L. 94–455, § 1901(a)(63), substituted reference to Sept. 2, 1974, for reference to the date of enactment of the Employee Retirement Income Security Act of 1974 in par. (5)

   2. Substituted · 26 U.S.C. § 412(h)

      Pub. L. 94–455, § 1901(a)(63), substituted reference to Sept. 1, 1974, for reference to the day before the date of enactment of the Employee Retirement Income Security Act of 1974 in the provisions following par. (6)

   Source evidence

   Code amendment note
   Subsec. (h). Pub. L. 94–455, § 1901(a)(63), substituted reference to Sept. 2, 1974, for reference to the date of enactment of the Employee Retirement Income Security Act of 1974 in par. (5) and substituted reference to Sept. 1, 1974, for reference to the day before the date of enactment of the Employee Retirement Income Security Act of 1974 in the provisions following par. (6).

   Enacted provision · exact public law section
   (63) Amendments of section 412.— (A) Subsection (h) of section 412 (relating to minimum 26 USC 412. funding standards) is amended by striking out “the day before the date of the enactment of the Employee Retirement Income Security Act of 1974” and inserting in lieu thereof “September 1, 1974”. (B) Subsection (h)(5) of section 412 is amended by striking out “the date of the enactment of the Employee Retirement Income Security Act of 1974” and inserting in lieu thereof “September 2, 1974”.

4. 1976

   Pub. L. 94–455 § 1906(b)(13)(A) · 90 Stat. 1520

   Struck · 26 U.S.C. § 412(i)

   Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”

   Source evidence

   Code amendment note
   Subsec. (i). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.

   Enacted provision · exact public law section
   (A) The Internal Revenue Code of 1954, as amended by this Act, is amended by striking out “Secretary or his delegate” each place it appears and inserting in lieu thereof “Secretary”.

5. 1980

   Multiemployer Pension Plan Amendments Act of 1980

   Pub. L. 96–364 § 208(c) · 94 Stat. 1208

   Inserted · 26 U.S.C. § 412(a)

   Pub. L. 96–364, § 208(c), inserted provisions relating to plan years where multiemployer plan is in reorganization

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 96–364, § 208(c), inserted provisions relating to plan years where multiemployer plan is in reorganization.

   Enacted provision · exact public law section
   (c) Section 412(a) is amended by adding at the end thereof the 26 USC 412. following new sentence: “In any plan year in which a multiemployer plan is in reorganization, the accumulated funding deficiency of the plan shall be determined under section 418B.”. Ante, p. 1274.

6. 1980

   Multiemployer Pension Plan Amendments Act of 1980

   Pub. L. 96–364 § 203(1) · 94 Stat. 1208

   1. Struck · 26 U.S.C. § 412(b)

      Pub. L. 96–364, § 203(1), (2), struck out in pars. (2)(B)(ii), (iii), and (3)(B)(i) provisions respecting applicability of multiemployer plans with 40 plan years and in pars. (2)(B)(iv) and (3)(B)(ii) provisions respecting applicability of multiemployer plans with 20 year plans

   2. Added · 26 U.S.C. § 412(b)

      Pub. L. 96–364, § 203(1), (2), added pars. (6) and (7)

   Source evidence

   Code amendment note
   Subsec. (b). Pub. L. 96–364, § 203(1), (2), struck out in pars. (2)(B)(ii), (iii), and (3)(B)(i) provisions respecting applicability of multiemployer plans with 40 plan years and in pars. (2)(B)(iv) and (3)(B)(ii) provisions respecting applicability of multiemployer plans with 20 year plans and added pars. (6) and (7).

   Enacted provision · exact public law section
   (1) in subsection (b), by striking out “(40 plan years in the case of a multiemployer plan)” and “(20 plan years in the case of a multiemployer plan)” each place they appear;

7. 1980

   Multiemployer Pension Plan Amendments Act of 1980

   Pub. L. 96–364 § 203(3) · 94 Stat. 1208

   Added · 26 U.S.C. § 412(j); 26 U.S.C. § 412(k)

   Pub. L. 96–364, § 203(3), added subsecs. (j) and (k)

   Source evidence

   Code amendment note
   Subsecs. (j), (k). Pub. L. 96–364, § 203(3), added subsecs. (j) and (k).

   Enacted provision · exact public law section
   (3) by adding at the end thereof the following new subsection: “(j) Certain Terminated Multiemployer Plans.— This section applies with respect to a terminated multiemployer plan to which section 4021 of the Employee Retirement Income Security Act of 1974 29 USC 1321. applies, until the last day of the plan year in which the plan terminates, within the meaning of section 4041A(a)(2) of that Act. Ante, p. 1216. “(k) Financial Assistance.— Any amount of any financial assistance from the Pension Benefit Guaranty Corporation to any plan, and any repayment of such amount, shall be taken into account under this section in such manner as determined by the Secretary.”.

8. 1984

   Tax Reform Act of 1984

   Pub. L. 98–369 div. A title IV § 491(d)(25) · 98 Stat. 494

   Struck · 26 U.S.C. § 412(a)(2)

   Pub. L. 98–369 struck out “or 405(a)” after “section 403(a)”

   Source evidence

   Code amendment note
   Subsec. (a)(2). Pub. L. 98–369 struck out “or 405(a)” after “section 403(a)”.

   Enacted provision · exact public law section
   (25) Paragraph (2) of section 412(a) is amended by striking out “or 405(a)”.

9. 1986

   Single-Employer Pension Plan Amendments Act of 1986

   Pub. L. 99–272 § 11015(b)(2)(A) · 100 Stat. 82

   Inserted · 26 U.S.C. § 412(d)(1)

   Pub. L. 99–272, § 11015(b)(2)(A), inserted provision that the interest rate used for purposes of computing the amortization charge described in section 412(b)(2)(C) for a variance granted under this subsection be the rate determined under section 6621(b)

   Source evidence

   Code amendment note
   Subsec. (d)(1). Pub. L. 99–272, § 11015(b)(2)(A), inserted provision that the interest rate used for purposes of computing the amortization charge described in section 412(b)(2)(C) for a variance granted under this subsection be the rate determined under section 6621(b).

   Enacted provision · exact public law section
   (A) Variances from the minimum funding standard.— Paragraph (1) of section 412(d) of the Internal Revenue Code of 1954 (relating to waivers in case of substantial business 26 USC 412. hardship) is amended by adding at the end thereof the following new sentence: “The interest rate used for purposes of computing the amortization charge described in section 412(b)(2)(C) for a variance granted under this subsection shall be the rate determined under section 6621(b).”.

10. 1986

    Single-Employer Pension Plan Amendments Act of 1986

    Pub. L. 99–272 § 11015(b)(2)(B) · 100 Stat. 82

    Inserted · 26 U.S.C. § 412(e)

    Pub. L. 99–272, § 11015(b)(2)(B), inserted provision that the interest rate applicable under any arrangement entered into by the Secretary in connection with an extension granted under this subsection be the rate determined under section 6621(b)

    Source evidence

    Code amendment note
    Subsec. (e). Pub. L. 99–272, § 11015(b)(2)(B), inserted provision that the interest rate applicable under any arrangement entered into by the Secretary in connection with an extension granted under this subsection be the rate determined under section 6621(b).

    Enacted provision · exact public law section
    (B) Extensions of the amortization period.— Subsection (e) of section 412 of such Code (relating to extension of amortization period) is amended by adding after and below paragraph (2) the following new sentence: “The interest rate applicable under any arrangement entered into by the Secretary in connection with an extension granted under this subsection shall be the rate determined under section 6621(b).”.

11. 1986

    Single-Employer Pension Plan Amendments Act of 1986

    Pub. L. 99–272 § 11015(a)(2) · 100 Stat. 82

    1. Substituted · 26 U.S.C. § 412(f)

       Pub. L. 99–272, § 11015(a)(2), substituted in heading “Requirements relating to waivers and extensions” for “Benefits may not be increased during waiver or extension period”

    2. Substituted · 26 U.S.C. § 412(f)

       Pub. L. 99–272, § 11015(a)(2), substituted in heading “Benefits may not be increased during waiver or extension period” for “In general”

    3. Added · 26 U.S.C. § 412(f)

       Pub. L. 99–272, § 11015(a)(2), added par. (3)

    Source evidence

    Code amendment note
    Subsec. (f). Pub. L. 99–272, § 11015(a)(2), substituted in heading “Requirements relating to waivers and extensions” for “Benefits may not be increased during waiver or extension period” and in par. (1) heading “Benefits may not be increased during waiver or extension period” for “In general”, and added par. (3).

    Enacted provision · exact public law section
    (2) Amendments to the internal revenue code of 1954.— (A) In general.— Subsection (f) of section 412 of the Internal Revenue Code of 1954 (relating to requirement 26 USC 412. that benefits may not be increased during waiver or extension period) is amended by adding at the end thereof the following new paragraph: “(3) Security for waivers and extensions; consultations.— “(A) Security may be required.— “(i) In general.— Except as provided in subparagraph (C), the Secretary may require an employer maintaining a defined benefit plan which is a single-employer plan (within the meaning of section 4001(a)(15) of the Employee Retirement Income Security 29 USC 1301. Act of 1974) to provide security to such plan as a condition for granting or modifying a waiver under subsection (d) or an extension under subsection (e). “(ii) Special rules.— Any security provided under clause (i) may be perfected and enforced only by the Pension Benefit Guaranty Corporation, or at the direction of the Corporation, by a contributing sponsor Ante, p. 238. (within the meaning of section 4001(a)(13) of such Act), or a member of such sponsor’s controlled group (within Ante, p. 238. the meaning of section 4001(a)(14) of such Act). “(B) Consultation with the pension benefit guaranty corporation.— Except as provided in subparagraph (C), the Secretary shall, before granting or modifying a waiver under subsection (d) or an extension under subsection (e) with respect to a plan described in subparagraph (A)(i)— “(i) provide the Pension Benefit Guaranty Corporation with— “(I) notice of the completed application for any waiver, extension, or modification, and “(II) an opportunity to comment on such application within 30 days after receipt of such notice, and “(ii) consider— “(I) any comments of the Corporation under clause (i)(II), and “(II) any views of any employee organization (within the meaning of section 3(4) of the Employee 29 USC 1002. Retirement Income Security Act of 1974) representing participants in the plan which are submitted in writing to the Secretary in connection with such application. Information provided to the corporation under this subparagraph shall be considered tax return information and subject to the safeguarding and reporting requirements 26 USC 6103. of section 6103(p). “(C) Exception for certain waivers and extensions.— “(i) In general.— The preceding provisions of this paragraph shall not apply to any plan with respect to which the sum of— “(I) the outstanding balance of the accumulated funding deficiencies (within the meaning of subsection 29 USC 1082. (a) and section 302(a) of such Act) of the plan, “(II) the outstanding balance of the amount of waived funding deficiencies of the plan waived 29 USC 1083. under subsection (d) or section 303 of such Act, and “(III) the outstanding balance of the amount of decreases in the minimum funding standard allowed under subsection (e) or section 304 of such 29 USC 1084. Act is less than $2,000,000. “(ii) Accumulated funding deficiencies.— For purposes of clause (i)(I), accumulated funding deficiencies shall include any increase in such amount which would result if all applications for waivers of the minimum funding standard under subsection (d) or section 303 of such Act and for extensions of the amortization period 29 USC 1083. 29 USC 1084. under subsection (e) or section 304 of such Act which are pending with respect to such plan were denied.”. (B) Conforming amendments.— Section 412(f) of the Internal Revenue Code of 1954 is amended— 26 USC 412. (i) by striking out the heading thereof and inserting in lieu thereof: “(f) Requirements Relating to Waivers and Extensions.—”, and (ii) by striking out the heading of paragraph (1) thereof and inserting in lieu thereof: “(1) Benefits may not be increased during waiver or extension period.—”,

12. 1986

    Single-Employer Pension Plan Amendments Act of 1986

    Pub. L. 99–272 § 11016(c)(4) · 100 Stat. 82

    Added · 26 U.S.C. § 412(f)

    Pub. L. 99–272, § 11016(c)(4), added par. (4)

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 99–272, § 11016(c)(4), added par. (4).

    Enacted provision · exact public law section
    (4) Amendment to the internal revenue code of 1954.— Subsection (f) of section 412 of the Internal Revenue Code of 1954 (relating to benefits may not be increased during waiver or 26 USC 412. extension period), as amended by the preceding provisions of this title, is further amended by adding at the end thereof the following new paragraph: “(4) Additional requirements.— “(A) Advance notice.— The Secretary shall, before granting a waiver under subsection (d) or an extension under subsection (e), require each applicant to provide evidence satisfactory to the Secretary that the applicant has provided notice of the filing of the application for such waiver or extension to each employee organization representing employees covered by the affected plan. “(B) Consideration of relevant information.— The Secretary shall consider any relevant information provided by a person to whom notice was given under subparagraph (A).”.

13. 1987

    Pub. L. 100–203 § 9303(a)(2) · 101 Stat. 1330

    Inserted · 26 U.S.C. § 412(b)(2)

    Pub. L. 100–203, § 9303(a)(2), inserted at end “For additional requirements in the case of plans other than multiemployer plans, see subsection (l).”

    Source evidence

    Code amendment note
    Subsec. (b)(2). Pub. L. 100–203, § 9303(a)(2), inserted at end “For additional requirements in the case of plans other than multiemployer plans, see subsection (l).”

    Enacted provision · exact public law section
    (2) Conforming amendment.— Paragraph (2) of section 412(b) of the 1986 Code is amended by adding at the end thereof the 26 USC 412. following new sentence: 9494Incorrect indention in copy. “For additional requirements in the case of plans other than multiemployer plans, see subsection (1).”

14. 1987

    Pub. L. 100–203 § 9307(a)(1)(A) · 101 Stat. 1330

    Substituted · 26 U.S.C. § 412(b)(2)(B)(iv)

    Pub. L. 100–203, § 9307(a)(1)(A), substituted “5 plan years (15 plan years in the case of a multiemployer plan)” for “15 plan years”

    Source evidence

    Code amendment note
    Subsec. (b)(2)(B)(iv). Pub. L. 100–203, § 9307(a)(1)(A), substituted “5 plan years (15 plan years in the case of a multiemployer plan)” for “15 plan years”.

    Enacted provision · exact public law section
    (A) Paragraphs (2)(B)(iv), (2)(C), and (3)(B)(ii) of section 412(b) of the 1986 Code are each amended by striking out 26 USC 412. “15 plan years” and inserting in lieu thereof “5 plan years (15 plan years in the case of a multiemployer plan)”.

15. 1987

    Pub. L. 100–203 § 9307(a)(1)(B) · 101 Stat. 1330

    Substituted · 26 U.S.C. § 412(b)(2)(B)(v)

    Pub. L. 100–203, § 9307(a)(1)(B), substituted “10 plan years (30 plan years in the case of a multiemployer plan)” for “30 plan years”

    Source evidence

    Code amendment note
    Subsec. (b)(2)(B)(v). Pub. L. 100–203, § 9307(a)(1)(B), substituted “10 plan years (30 plan years in the case of a multiemployer plan)” for “30 plan years”.

    Enacted provision · exact public law section
    (B) Paragraphs (2)(B)(v) and (3)(B)(iii) of section 412(b) of the 1986 Code are each amended by striking out “30 plan years” and inserting in lieu thereof “10 plan years (30 plan years in the case of a multiemployer plan)”.

16. 1987

    Pub. L. 100–203 § 9307(a)(1)(A) · 101 Stat. 1330

    Substituted · 26 U.S.C. § 412(b)(2)(C); 26 U.S.C. § 412(3)(B)(ii)

    Pub. L. 100–203, § 9307(a)(1)(A), substituted “5 plan years (15 plan years in the case of a multiemployer plan)” for “15 plan years”

    Source evidence

    Code amendment note
    Subsec. (b)(2)(C), (3)(B)(ii). Pub. L. 100–203, § 9307(a)(1)(A), substituted “5 plan years (15 plan years in the case of a multiemployer plan)” for “15 plan years”.

    Enacted provision · exact public law section
    (A) Paragraphs (2)(B)(iv), (2)(C), and (3)(B)(ii) of section 412(b) of the 1986 Code are each amended by striking out 26 USC 412. “15 plan years” and inserting in lieu thereof “5 plan years (15 plan years in the case of a multiemployer plan)”.

17. 1987

    Pub. L. 100–203 § 9307(a)(1)(B) · 101 Stat. 1330

    Substituted · 26 U.S.C. § 412(b)(3)(B)(iii)

    Pub. L. 100–203, § 9307(a)(1)(B), substituted “10 plan years (30 plan years in the case of a multiemployer plan)” for “30 plan years”

    Source evidence

    Code amendment note
    Subsec. (b)(3)(B)(iii). Pub. L. 100–203, § 9307(a)(1)(B), substituted “10 plan years (30 plan years in the case of a multiemployer plan)” for “30 plan years”.

    Enacted provision · exact public law section
    (B) Paragraphs (2)(B)(v) and (3)(B)(iii) of section 412(b) of the 1986 Code are each amended by striking out “30 plan years” and inserting in lieu thereof “10 plan years (30 plan years in the case of a multiemployer plan)”.

18. 1987

    Pub. L. 100–203 § 9307(e)(1) · 101 Stat. 1330

    Amended · 26 U.S.C. § 412(b)(5)

    Pub. L. 100–203, § 9307(e)(1), amended par. (5) generally. Prior to amendment, par. (5) read as follows: “The funding standard account (and items therein) shall be charged or credited (as determined under regulations prescribed by the Secretary) with interest at the appropriate rate consistent with the rate or rates of interest used under the plan to determine costs.”

    Source evidence

    Code amendment note
    Subsec. (b)(5). Pub. L. 100–203, § 9307(e)(1), amended par. (5) generally. Prior to amendment, par. (5) read as follows: “The funding standard account (and items therein) shall be charged or credited (as determined under regulations prescribed by the Secretary) with interest at the appropriate rate consistent with the rate or rates of interest used under the plan to determine costs.”

    Enacted provision · exact public law section
    (1) Amendment to 1986 code.— Paragraph (5) of section 412(b)) of the 1986 Code (relating to interest) is amended to read as follows: “(5) Interest.— “(A) In general.— The funding standard account (and Regulations. items therein) shall be charged or credited (as determined under regulations prescribed by the Secretary) with interest at the appropriate rate consistent with the rate or rates of interest used under the plan to determine costs. “(B) Required change of interest rate.— For purposes of determining a plan’s current liability and for purposes of determining a plan’s required contribution under section 412(1) for any plan year— “(i) In general.— If any rate of interest used under the plan to determine cost is not within the permissible range, the plan shall establish a new rate of interest within the permissible range. “(ii) Permissible range.— For purposes of this subparagraph— “(I) In general.— Except as provided in subclause (II), the term ‘permissible range’ means a rate of interest which is not more than 10 percent above, and not more than 10 percent below, the weighted average of the rates of interest on 30-year Treasury securities during the 4-year period ending on the last day before the beginning of the plan year. “(II) Secretarial authority.— If the Secretary finds that the lowest rate of interest permissible under subclause (I) is unreasonably high, the Secretary may prescribe a lower rate of interest, except that such rate may not be less than 80 percent of the average rate determined under subclause (I). “(iii) Assumptions.— Notwithstanding subsection (c)(3)(A)(i), for purposes of this section and for purposes of determining current liability, the interest rate used under the plan shall be— “(I) determined without taking into account the experience of the plan and reasonable expectations, but “(II) consistent with the assumptions which reflect the purchase rates which would be used by insurance companies to satisfy the liabilities under the plan.”.

19. 1987

    Pub. L. 100–203 § 9303(d)(1) · 101 Stat. 1330

    Inserted · 26 U.S.C. § 412(c)(2)(B)

    Pub. L. 100–203, § 9303(d)(1), inserted at end “In the case of a plan other than a multiemployer plan, this subparagraph shall not apply, but the Secretary may by regulations provide that the value of any dedicated bond portfolio of such plan shall be determined by using the interest rate under subsection (b)(5).”

    Source evidence

    Code amendment note
    Subsec. (c)(2)(B). Pub. L. 100–203, § 9303(d)(1), inserted at end “In the case of a plan other than a multiemployer plan, this subparagraph shall not apply, but the Secretary may by regulations provide that the value of any dedicated bond portfolio of such plan shall be determined by using the interest rate under subsection (b)(5).”

    Enacted provision · exact public law section
    (1) Amendment to 1986 code.— Subparagraph (B) of section Regulations. 26 USC 412. 412(c)(2) of the 1986 Code is amended by adding at the end thereof the following new sentence: “In the case of a plan other than a multiemployer plan, this subparagraph shall not apply, but the Secretary may by regulations provide that the value of any dedicated bond portfolio of such plan shall be determined by using the interest rate under subsection (b)(5).”

20. 1987

    Pub. L. 100–203 § 9307(b)(1) · 101 Stat. 1330

    Amended · 26 U.S.C. § 412(c)(3)

    Pub. L. 100–203, § 9307(b)(1), amended par. (3) generally. Prior to amendment, par. (3) read as follows: “For purposes of this section, all costs, liabilities, rates of interest, and other factors under the plan shall be determined on the basis of actuarial assumptions and methods which, in the aggregate, are reasonable (taking into account the experience of the plan and reasonable expectations) and which, in combination, offer the actuary’s best estimate of anticipated experience under the plan.”

    Source evidence

    Code amendment note
    Subsec. (c)(3). Pub. L. 100–203, § 9307(b)(1), amended par. (3) generally. Prior to amendment, par. (3) read as follows: “For purposes of this section, all costs, liabilities, rates of interest, and other factors under the plan shall be determined on the basis of actuarial assumptions and methods which, in the aggregate, are reasonable (taking into account the experience of the plan and reasonable expectations) and which, in combination, offer the actuary’s best estimate of anticipated experience under the plan.”

    Enacted provision · exact public law section
    (1) Amendment to 1986 code.— Paragraph (3) of section 412(c) of the 1986 Code is amended to read as follows: “(3) Actuarial assumptions must be reasonable.— For purposes of this section, all costs, liabilities, rates of interest, and other factors under the plan shall be determined on the basis of actuarial assumptions and methods— “(A) in the case of— “(i) a plan other than a multiemployer plan, each of which is reasonable (taking into account the experience of the plan and reasonable expectations) or which, in the aggregate, result in a total contribution equivalent to that which would be determined if each such assumption and method were reasonable, or “(ii) a multiemployer plan, which, in the aggregate, are reasonable (taking into account the experiences of the plan and reasonable expectations), and “(B) which, in combination, offer the actuary’s best estimate of anticipated experience under the plan.”

21. 1987

    Pub. L. 100–203 § 9301(a) · 101 Stat. 1330

    1. Substituted · 26 U.S.C. § 412(c)(7)

       Pub. L. 100–203, § 9301(a), substituted “Full-funding” for “Full funding” in heading

    2. Amended · 26 U.S.C. § 412(c)(7)

       Pub. L. 100–203, § 9301(a), amended text generally. Prior to amendment, text read as follows: “For purposes of paragraph (6), the term full funding limitation means the excess (if any) of—

    Source evidence

    Code amendment note
    Subsec. (c)(7). Pub. L. 100–203, § 9301(a), substituted “Full-funding” for “Full funding” in heading and amended text generally. Prior to amendment, text read as follows: “For purposes of paragraph (6), the term full funding limitation means the excess (if any) of—

    “(A) the accrued liability (including normal cost) under the plan (determined under the entry age normal funding method if such accrued liability cannot be directly calculated under the funding method used for the plan), over “(B) the lesser of the fair market value of the plan’s assets or the value of such assets determined under paragraph (2).”

    Enacted provision · exact public law section
    (a) General Rule.— Paragraph (7) of section 412(c) of the Internal Revenue Code of 1986 (defining full-funding limitation) is amended 26 USC 412. to read as follows: “(7) Full-funding limitation.— “(A) In general.— For purposes of paragraph (6), the term ‘full-funding limitation’ means the excess (if any) of— “(i) the lesser of (I) 150 percent of current liability, or (II) the accrued liability (including normal cost) under the plan (determined under the entry age normal funding method if such accrued liability cannot be directly calculated under the funding method used for the plan), over “(ii) the lesser of— “(I) the fair market value of the plan’s assets, or “(II) the value of such assets determined under paragraph (2). “(B) Current liability.— For purposes of subparagraphs (A) and (D), the term ‘current liability’ has the meaning given such term by subsection (1)(7) (without regard to subparagraph (D) thereof). “(C) Special rule for paragraph (6)(b).— For purposes of paragraph (6)(B), subparagraph (A)(i) shall be applied without regard to subclause (I) thereof. “(D) Regulatory authority.— The Secretary may by regulations provide— “(i) for adjustments to the percentage contained in subparagraph (A)(i) to take into account the respective ages or lengths of service of the participants, “(ii) alternative methods based on factors other than current liability for the determination of the amount taken into account under subparagraph (A)(i), and “(iii) for the treatment under this section of contributions which would be required to be made under the plan but for the provisions of subparagraph (A)(i)(I).”

22. 1987

    Pub. L. 100–203 § 9304(a)(1) · 101 Stat. 1330

    Amended · 26 U.S.C. § 412(c)(10)

    Pub. L. 100–203, § 9304(a)(1), amended par. (10) generally. Prior to amendment, par. (10) read as follows: “For purposes of this section, any contributions for a plan year made by an employer after the last day of such plan year, but not later than two and one-half months after such day, shall be deemed to have been made on such last day. For purposes of this paragraph, such two and one-half month period may be extended for not more than six months under regulations prescribed by the Secretary.”

    Source evidence

    Code amendment note
    Subsec. (c)(10). Pub. L. 100–203, § 9304(a)(1), amended par. (10) generally. Prior to amendment, par. (10) read as follows: “For purposes of this section, any contributions for a plan year made by an employer after the last day of such plan year, but not later than two and one-half months after such day, shall be deemed to have been made on such last day. For purposes of this paragraph, such two and one-half month period may be extended for not more than six months under regulations prescribed by the Secretary.”

    Enacted provision · exact public law section
    (1) Amendment to 1986 Code.— Paragraph (10) of section 412(c) of the 1986 Code (relating to time when certain contributions 26 USC 412. deemed made) is amended to read as follows: “(10) Time when certain contributions deemed made.— For purposes of this section— “(A) Plans other than multiemployer plans.— In the case of a plan other than a multiemployer plan, any contributions for a plan year made by an employer during the period— “(i) beginning on the day after the last day of such plan year, and “(ii) ending on the day which is 8½ months after the close of the plan year, shall be deemed to have been made on such last day. “(B) Multiemployer plans.— In the case of a multiemployer plan, any contributions for a plan year made by an employer after the last day of such plan year, but not later than two and one-half months after such day, shall be deemed to have been made on such last day. For purposes of this subparagraph, such two and one-half month period may be extended for not more than six months under regulations prescribed by the Secretary.”

23. 1987

    Pub. L. 100–203 § 9305(b)(1) · 101 Stat. 1330

    Added · 26 U.S.C. § 412(c)(11)

    Pub. L. 100–203, § 9305(b)(1), added par. (11)

    Source evidence

    Code amendment note
    Subsec. (c)(11). Pub. L. 100–203, § 9305(b)(1), added par. (11).

    Enacted provision · exact public law section
    (1) Amendment to 1986 code.— Section 412(c) of the 1986 Code is amended by adding at the end thereof the following new paragraph: “(11) Liability for contributions.— “(A) In general.— Except as provided in subparagraph (B), the amount of any contribution required by this section and any required installments under subsection (m) shall be paid by the employer responsible for contributing to or under the plan the amount described in subsection (b)(3)(A). “(B) Joint and several liability where employer member of controlled group.— “(i) In general.— In the case of a plan other than a multiemployer plan, if the employer referred to in subparagraph (A) is a member of a controlled group, each member of such group shall be jointly and severally liable for payment of such contribution or required installment. “(ii) Controlled group.— For purposes of clause (i), the term ‘controlled group’ means any group treated as a single employer under subsection (b), (c), (m), or (o) of section 414.”

24. 1987

    Pub. L. 100–203 § 9306(a)(1)(B) · 101 Stat. 1330

    1. Struck · 26 U.S.C. § 412(d)(1)

       Pub. L. 100–203, § 9306(a)(1)(B), struck out “substantial” after “in case of” in heading

    2. Substituted · 26 U.S.C. § 412(d)(1)

       Pub. L. 100–203, § 9306(a)(1)(B), substituted “temporary substantial business hardship (substantial business hardship in the case of a multiemployer plan)” for “substantial business hardship” in text

    Source evidence

    Code amendment note
    Subsec. (d)(1). Pub. L. 100–203, § 9306(a)(1)(B), struck out “substantial” after “in case of” in heading, and substituted “temporary substantial business hardship (substantial business hardship in the case of a multiemployer plan)” for “substantial business hardship” in text.

    Enacted provision · exact public law section
    (B) Waiver allowed only for temporary hardship.— Subsection (d) of section 412 of the 1986 Code is amended— (i) by striking out “substantial business hardship” in paragraphs (1) and (2) and inserting in lieu thereof “temporary substantial business hardship (substantial business hardship in the case of a multiemployer plan)”, and (ii) by striking out “substantial— in the headings of paragraphs (1) and (2).

25. 1987

    Pub. L. 100–203 § 9306(b)(1) · 101 Stat. 1330

    Substituted · 26 U.S.C. § 412(d)(1)

    Pub. L. 100–203, § 9306(b)(1), substituted “more than 3 of any 15 (5 of any 15 in the case of a multiemployer plan)” for “more than 5 of any 15”

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 100–203, § 9306(b)(1), substituted “more than 3 of any 15 (5 of any 15 in the case of a multiemployer plan)” for “more than 5 of any 15”.

    Enacted provision · exact public law section
    (1) Amendments to 1986 code.— The second sentence of section 26 USC 412. 412(d)(1) of the 1986 Code is amended by striking out “more than 5 of any 15” and inserting in lieu thereof “more than 3 of any 15 (5 of any 15 in the case of a multiemployer plan)”.

26. 1987

    Pub. L. 100–203 § 9306(c)(1)(A) · 101 Stat. 1330

    Substituted · 26 U.S.C. § 412(d)(1)

    Pub. L. 100–203, § 9306(c)(1)(A), substituted “The interest rate used for purposes of computing the amortization charge described in subsection (b)(2)(C) for any plan year shall be—” and subpars. (A) and (B) for “The interest rate used for purposes of computing the amortization charge described in section 412(b)(2)(C) for a variance granted under this subsection shall be the rate determined under section 6621(b).”

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 100–203, § 9306(c)(1)(A), substituted “The interest rate used for purposes of computing the amortization charge described in subsection (b)(2)(C) for any plan year shall be—” and subpars. (A) and (B) for “The interest rate used for purposes of computing the amortization charge described in section 412(b)(2)(C) for a variance granted under this subsection shall be the rate determined under section 6621(b).”

    Enacted provision · exact public law section
    (A) Paragraph (1) of section 412(d) of the 1986 Code is amended by striking out the last sentence and inserting in lieu thereof the following new sentence: “The interest rate used for purposes of computing the amortization charge described in subsection (b)(2)(C) for any plan year shall be— “(A) in the case of a plan other than a multiemployer plan, the greater of (i) 150 percent of the Federal midterm rate (as in effect under section 1274 for the 1st month of such plan year), or (ii) the rate of interest used under the plan in determining costs, and “(B) in the case of a multiemployer plan, the rate determined under section 6621(b).”

27. 1987

    Pub. L. 100–203 § 9306(a)(1)(B) · 101 Stat. 1330

    1. Struck · 26 U.S.C. § 412(d)(2)

       Pub. L. 100–203, § 9306(a)(1)(B), struck out “substantial” after “Determination of” in heading

    2. Substituted · 26 U.S.C. § 412(d)(2)

       Pub. L. 100–203, § 9306(a)(1)(B), substituted “temporary substantial business hardship (substantial business hardship in the case of a multiemployer plan)” for “substantial business hardship” in introductory provisions

    Source evidence

    Code amendment note
    Subsec. (d)(2). Pub. L. 100–203, § 9306(a)(1)(B), struck out “substantial” after “Determination of” in heading, and substituted “temporary substantial business hardship (substantial business hardship in the case of a multiemployer plan)” for “substantial business hardship” in introductory provisions.

    Enacted provision · exact public law section
    (B) Waiver allowed only for temporary hardship.— Subsection (d) of section 412 of the 1986 Code is amended— (i) by striking out “substantial business hardship” in paragraphs (1) and (2) and inserting in lieu thereof “temporary substantial business hardship (substantial business hardship in the case of a multiemployer plan)”, and (ii) by striking out “substantial— in the headings of paragraphs (1) and (2).

28. 1987

    Pub. L. 100–203 § 9306(a)(1)(A) · 101 Stat. 1330

    Added · 26 U.S.C. § 412(d)(4)

    Pub. L. 100–203, § 9306(a)(1)(A), added par. (4)

    Source evidence

    Code amendment note
    Subsec. (d)(4). Pub. L. 100–203, § 9306(a)(1)(A), added par. (4).

    Enacted provision · exact public law section
    (A) Application must be submitted before date 2½ months after close of year.— Subsection (d) of section 412 of the 1986 Code (relating to variance from minimum funding standard) is amended by adding at the end thereof the following new paragraph:

29. 1987

    Pub. L. 100–203 § 9306(a)(1)(C) · 101 Stat. 1330

    Added · 26 U.S.C. § 412(d)(5)

    Pub. L. 100–203, § 9306(a)(1)(C), added par. (5)

    Source evidence

    Code amendment note
    Subsec. (d)(5). Pub. L. 100–203, § 9306(a)(1)(C), added par. (5).

    Enacted provision · exact public law section
    (C) Hardship must also exist at controlled group level.— Subsection (d) of section 412 of the 1986 Code is 26 USC 412. amended by adding at the end thereof the following new paragraph:

30. 1987

    Pub. L. 100–203 § 9306(c)(1)(B) · 101 Stat. 1330

    Substituted · 26 U.S.C. § 412(e)

    Pub. L. 100–203, § 9306(c)(1)(B), substituted last two sentences for “The interest rate applicable under any arrangement entered into by the Secretary in connection with an extension granted under this subsection shall be the rate determined under section 6621(b).”

    Source evidence

    Code amendment note
    Subsec. (e). Pub. L. 100–203, § 9306(c)(1)(B), substituted last two sentences for “The interest rate applicable under any arrangement entered into by the Secretary in connection with an extension granted under this subsection shall be the rate determined under section 6621(b).”

    Enacted provision · exact public law section
    (B) Subsection (e) of section 412 of the 1986 Code is amended by striking out the last sentence and inserting in lieu thereof the following new sentence: "In the case of a plan other than a multiemployer plan, the interest rate applicable for any plan year under any arrangement entered into by the Secretary in connection with an extension granted under this subsection shall be the greater of (A) 150 percent of the Federal mid-term rate (as in effect under section 1274 for the 1st month of such plan year), or (B) the rate of interest used under the plan in determining costs. In the case of a multiemployer plan, such rate shall be the rate determined under section 6621(b).”

31. 1987

    Pub. L. 100–203 § 9306(e)(1) · 101 Stat. 1330

    Substituted · 26 U.S.C. § 412(f)(3)(C)(i)

    Pub. L. 100–203, § 9306(e)(1), substituted “$1,000,000” for “$2,000,000” at end

    Source evidence

    Code amendment note
    Subsec. (f)(3)(C)(i). Pub. L. 100–203, § 9306(e)(1), substituted “$1,000,000” for “$2,000,000” at end.

    Enacted provision · exact public law section
    (1) Amendment to 1986 code.— Subparagraph (C) of section 412 (0(3) is amended by striking out “$2,000,000” and inserting in lieu thereof “$1,000,000”.

32. 1987

    Pub. L. 100–203 § 9306(d)(1) · 101 Stat. 1330

    Substituted · 26 U.S.C. § 412(f)(4)(A)

    Pub. L. 100–203, § 9306(d)(1), substituted “plan, and each participant, beneficiary, and alternate payee (within the meaning of section 414(p)(8)). Such notice shall include a description of the extent to which the plan is funded for benefits which are guaranteed under title IV of such Act and the benefit liabilities.” for “plan.”

    Source evidence

    Code amendment note
    Subsec. (f)(4)(A). Pub. L. 100–203, § 9306(d)(1), substituted “plan, and each participant, beneficiary, and alternate payee (within the meaning of section 414(p)(8)). Such notice shall include a description of the extent to which the plan is funded for benefits which are guaranteed under title IV of such Act and the benefit liabilities.” for “plan.”

    Enacted provision · exact public law section
    (1) Amendment to 1986 code.— Section 412 (f)(4)(A) of the 1986 Code (relating to advance notice) is amended by striking out 26 USC 412. “plan.” and inserting in lieu thereof “plan, and each participant, beneficiary, and alternate payee (within the meaning of section 414(p)(8)). Such notice shall include a description of the extent to which the plan is funded for benefits which are guaranteed under title IV of such Act and the benefit liabilities.”.

33. 1987

    Pub. L. 100–203 § 9303(a)(1) · 101 Stat. 1330

    Added · 26 U.S.C. § 412(l)

    Pub. L. 100–203, § 9303(a)(1), added subsec. (l)

    Source evidence

    Code amendment note
    Subsec. (l). Pub. L. 100–203, § 9303(a)(1), added subsec. (l).

    Enacted provision · exact public law section
    (1) In general.— Section 412 of the 1986 Code (relating to 26 USC 412. minimum funding standard) is amended by adding at the end thereof the following new subsection: “(l) Additional Funding Requirements for Plans Which Are Not Multiemployer Plans.— “(1) In general.— In the case of a defined benefit plan (other than a multiemployer plan) which has an unfunded current liability for any plan year, the amount charged to the funding standard account for such plan year shall be increased by the sum of— “(A) the excess (if any) of— “(i) the deficit reduction contribution determined under paragraph (2) for such plan year, over “(ii) the sum of the charges for such plan year under subparagraphs (B) (other than clauses (iv) and (v) thereof), (C), and (D) of subsection (b)(2), reduced by the sum of the credits for such plan year under subparagraph (B)(i) of subsection (b)(3), plus “(B) the unpredictable contingent event amount (if any) for such plan year. Such increase shall not exceed the amount necessary to increase the funded current liability percentage to 100 percent. “(2) Deficit reduction contribution.— For purposes of paragraph (1), the deficit reduction contribution determined under this paragraph for any plan year is the sum of— “(A) the unfunded old liability amount, plus “(B) the unfunded new liability amount. “(3) Unfunded old liability amount.— For purposes of this subsection— “(A) In general.— The unfunded old liability amount with respect to any plan for any plan year is the amount necessary to amortize the unfunded old liability under the plan in equal annual installments over a period of 18 plan years (beginning with the 1st plan year beginning after December 31, 1988). “(B) Unfunded old liability.— The term ‘unfunded old liability’ means the unfunded current liability of the plan as of the beginning of the 1st plan year beginning after December 31, 1987 (determined without regard to any plan amendment increasing liabilities adopted after October 16, 1987). “(C) Special rules for benefit increases under existing collective bargaining agreements.— “(i) In general.— In the case of a plan maintained pursuant to 1 or more collective bargaining agreements between employee representatives and the employer ratified before October 17, 1987, the unfunded old liability amount with respect to such plan for any plan year shall be increased by the amount necessary to amortize the unfunded existing benefit increase liability in equal annual installments over a period of 18 plan years beginning with— “(I) the plan year in which the benefit increase with respect to such liability occurs, or “(II) if the taxpayer elects, the 1st plan year beginning after December 31, 1988. “(ii) Unfunded existing benefit increase liabilities— For purposes of clause (i), the unfunded existing benefit increase liability means, with respect to any benefit increase under the agreements described in clause (i) which takes effect during or after the 1st plan year beginning after December 31, 1987, the unfunded current liability determined— “(I) by taking into account only liabilities attributable to such benefit increase, and “(II) by reducing the amount determined under paragraph (8)(A)(ii) by the current liability determined without regard to such benefit increase, “(iii) Extensions, modifications, etc. not taken into account.— For purposes of this subparagraph, any extension, amendment, or other modification of an agreement after October 16, 1987, shall not be taken into account. “(4) Unfunded new liability amount.— For purposes of this subsection— “(A) In general.— The unfunded new liability amount with respect to any plan for any plan year is the applicable percentage of the unfunded new liability. “(B) Unfunded new liability.— The term ‘unfunded new liability’ means the unfunded current liability of the plan for the plan year determined without regard to— “(i) the unamortized portion of the unfunded old liability, and “(ii) the liability with respect to any unpredictable contingent event benefits (without regard to whether the event has occurred). “(C) Applicable percentage.— The term ‘applicable percentage’ means, with respect to any plan year, 30 percent, reduced by the product of— “(i) .25 multiplied by “(ii) the number of percentage points (if any) by which the funded current liability percentage exceeds 35 percent. “(5) Unpredictable contingent event amount.— “(A) In general.— The unpredictable contingent event amount with respect to a plan for any plan year is an amount equal to the greater of— “(i) the applicable percentage of the product of— “(I) 100 percent, reduced (but not below zero) by the funded current liability percentage for the plan year, multiplied by “(II) the amount of unpredictable contingent event benefits paid during the plan year, including (except as provided by the Secretary) any payment for the purchase of an annuity contract for a participant or beneficiary with respect to such benefits, or “(ii) the amount which would be determined for the plan year if the unpredictable contingent event benefit liabilities were amortized in equal annual installments over 7 plan years (beginning with the plan year in which such event occurs). “(B) Applicable percentage.— “In the case of plan years beginning in: The applicable percentage is: 1989 and 1990 ................ 5 1991 ............................... 10 1992 ............................... 15 1993 ............................... 20 1994 ............................... 30 1995 ............................... 40 1996 50 1997 ............................... 60 1998 ............................... 70 1999 ............................... 80 2000 ............................... 90 2001 and thereafter ................ 100. “(C) Paragraph not to apply to existing benefits.— This paragraph shall not apply to unpredictable contingent event benefits (and liabilities attributable thereto) for which the event occurred before October 17, 1987. “(D) Special rule for first year of amortization.— Unless the employer elects otherwise, the amount deter-mined under subparagraph (A) for the plan year in which the event occurs shall be equal to 150 percent of the amount determined under subparagraph (A)(i). The amount under subparagraph (A)(ii) for subsequent plan years in the amortization period shall be adjusted in the manner provided by the Secretary to reflect the application of this subparagraph. “(6) Special rules for small plans.— “(A) Plans with 100 or fewer participants.— This subsection shall not apply to any plan for any plan year if on each day during the preceding plan year such plan had no more than 100 participants. “(B) Plans with more than 100 but not more than 150 participants.— In the case of a plan to which subparagraph (A) does not apply and which on each day during the preceding plan year had no more than 150 participants, the amount of the increase under paragraph (1) for such plan year shall be equal to the product of— “(i) such increase determined without regard to this subparagraph, multiplied by “(ii) 2 percent for the highest number of participants in excess of 100 on any such day. “(C) Aggregation of plans.— For purposes of this paragraph, all defined benefit plans maintained by the same employer (or any member of such employer’s controlled group) shall be treated as 1 plan, but only employees of such employer or member shall be taken into account. “(7) Current liability.— For purposes of this subsection— “(A) In general.— The term ‘current liability’ means all liabilities to employees and their beneficiaries under the plan. “(B) Treatment of unpredictable contingent event benefits.— “(i) In general.— For purposes of subparagraph (A), any unpredictable contingent event benefit shall not be taken into account until the event on which the benefit is contingent occurs. “(ii) Unpredictable contingent event benefit.— The term ‘unpredictable contingent event benefit’ means any benefit contingent on an event other than— “(I) age, service, compensation, death, or disability, or “(II) an event which is reasonably and reliably predictable (as determined by the Secretary). “(C) Interest rates used.— The rate of interest used to determine current liability shall be t he rate of interest used under subsection (b)(5). “(D) Certain service disregarded.— “(i) In general.— In the case of a participant to whom this subparagraph applies, only the applicable percentage of the years of service before such individual became a participant shall be taken into account in computing the current liability of the plan. “(ii) Applicable percentage.— For purposes of this subparagraph, the applicable percentage shall be determined as follows: “If the years of participation are: “The applicable percentage is: 1 ................................... 20 2 ................................... 40 3 ................................... 60 4 ................................... 80 5 or more .......................... 100. “(iii) Participants to whom subparagraph applies.— This subparagraph shall apply to any participant who, at the time of becoming a participant— “(I) has not accrued any other benefit under any defined benefit plan (whether or not terminated) maintained by the employer or a member of the same controlled group of which the employer is a member, and “(II) who first becomes a participant under the plan in a plan year beginning after December 31, 1987. “(8) Other definitions.— For purposes of this subsection— “(A) Unfunded current liability.— The term ‘unfunded current liability’ means, with respect to any plan year, the excess (if any) of— “(i) the current liability under the plan, over “(ii) value of the plan’s assets determined under subsection (c)(2) reduced by any credit balance in the funding standard account. “(B) Funded current liability percentage.— The term ‘funded current liability percentage’ means, with respect to any plan year, the percentage which— “(i) the amount determined under subparagraph (A)(ii), is of “(ii) the current liability under the plan. “(C) Controlled group.— The term ‘controlled group’ means any group treated as a single employer under subsections (b), (c), (m), and (o) of section 414. “(D) Adjustments to prevent omissions and duplications.— The Secretary shall provide such adjustments in the unfunded old liability amount, the unfunded new liability amount, the unpredictable contingent event amount, the current payment amount, and any other charges or credits under this section as are necessary to avoid duplication or omission of any factors in the determination of such amounts, charges, or credits.”

34. 1987

    Pub. L. 100–203 § 9304(b)(1) · 101 Stat. 1330

    Added · 26 U.S.C. § 412(m)

    Pub. L. 100–203, § 9304(b)(1), added subsec. (m)

    Source evidence

    Code amendment note
    Subsec. (m). Pub. L. 100–203, § 9304(b)(1), added subsec. (m).

    Enacted provision · exact public law section
    (1) Amendment to 1986 code.— Section 412 of the 1986 Code (relating to minimum funding standard) is amended by adding 26 USC 412. at the end thereof the following new subsection:

35. 1987

    Pub. L. 100–203 § 9304(e)(1) · 101 Stat. 1330

    Added · 26 U.S.C. § 412(n)

    Pub. L. 100–203, § 9304(e)(1), added subsec. (n)

    Source evidence

    Code amendment note
    Subsec. (n). Pub. L. 100–203, § 9304(e)(1), added subsec. (n).

    Enacted provision · exact public law section
    (1) Amendment to 1986 code.— Section 412 of the 1986 Code (as amended by this subtitle) is amended by adding at the end thereof the following new subsection:

36. 1988

    Technical and Miscellaneous Revenue Act of 1988

    Pub. L. 100–647 § 2005(a)(2)(A) · 102 Stat. 3342

    1. Amended · 26 U.S.C. § 412(l)(3)(C)(i); 26 U.S.C. § 412(l)(3)(C)(iii)

       Pub. L. 100–647, § 2005(a)(2)(A), (d)(1), amended cl. (i) identically

    2. Substituted · 26 U.S.C. § 412(l)(3)(C)(i); 26 U.S.C. § 412(l)(3)(C)(iii)

       Pub. L. 100–647, § 2005(a)(2)(A), (d)(1), substituting “October 29” for “October 17”

    3. Amended · 26 U.S.C. § 412(l)(3)(C)(i); 26 U.S.C. § 412(l)(3)(C)(iii)

       Pub. L. 100–647, § 2005(a)(2)(A), (d)(1), amended cl. (iii) identically

    4. Substituted · 26 U.S.C. § 412(l)(3)(C)(i); 26 U.S.C. § 412(l)(3)(C)(iii)

       Pub. L. 100–647, § 2005(a)(2)(A), (d)(1), substituting “October 28” for “October 16”

    Source evidence

    Code amendment note
    Subsec. (l)(3)(C)(i), (iii). Pub. L. 100–647, § 2005(a)(2)(A), (d)(1), amended cl. (i) identically, substituting “October 29” for “October 17” and amended cl. (iii) identically, substituting “October 28” for “October 16”.

    Enacted provision · exact public law section
    (A) Subparagraph (C) of section 412(1)(3) of the 1986 Code is amended— (i) by striking out “October 17, 1987” in clause (i) and inserting in lieu thereof “October 29, 1987”, and (ii) by striking out “October 16, 1987” in clause (iii) and inserting in lieu thereof “October 28, 1987”.

37. 1989

    Revenue Reconciliation Act of 1989

    Pub. L. 101–239 § 7881(d)(1)(A) · 103 Stat. 2106

    Struck · 26 U.S.C. § 412(b)(5)(B)(iii)

    Pub. L. 101–239, § 7881(d)(1)(A), struck out “for purposes of this section and for purposes of determining current liability,” before “the interest rate” in introductory provisions

    Source evidence

    Code amendment note
    Subsec. (b)(5)(B)(iii). Pub. L. 101–239, § 7881(d)(1)(A), struck out “for purposes of this section and for purposes of determining current liability,” before “the interest rate” in introductory provisions.

    Enacted provision · exact public law section
    (A) Clause (iii) of section 412(b)(5)(B) is amended by striking 26 USC 412. “for purposes of this section and for purposes of determining current liability,”.

38. 1989

    Revenue Reconciliation Act of 1989

    Pub. L. 101–239 § 7881(a)(6)(A) · 103 Stat. 2106

    1. Substituted · 26 U.S.C. § 412(c)(9)

       Pub. L. 101–239, § 7881(a)(6)(A), substituted “Annual” for “3-year” in text

    2. Substituted · 26 U.S.C. § 412(c)(9)

       Pub. L. 101–239, § 7881(a)(6)(A), substituted “every year” for “every 3 years” in text

    Source evidence

    Code amendment note
    Subsec. (c)(9). Pub. L. 101–239, § 7881(a)(6)(A), substituted “Annual” for “3-year” in heading and “every year” for “every 3 years” in text.

    Enacted provision · exact public law section
    (A) Section 412(c)(9) is amended— (i) by striking “3 years” and inserting “year”, and (ii) by striking “3-year” in the heading and inserting “Annual”.

39. 1989

    Revenue Reconciliation Act of 1989

    Pub. L. 101–239 § 7881(b)(1)(A) · 103 Stat. 2106

    1. Substituted · 26 U.S.C. § 412(c)(10)(A)

       Pub. L. 101–239, § 7881(b)(1)(A), substituted “Defined benefit plans” for “Plans” in introductory provisions

    2. Substituted · 26 U.S.C. § 412(c)(10)(A)

       Pub. L. 101–239, § 7881(b)(1)(A), substituted “defined benefit plan other” for “plan other” in introductory provisions

    Source evidence

    Code amendment note
    Subsec. (c)(10)(A). Pub. L. 101–239, § 7881(b)(1)(A), substituted “Defined benefit plans” for “Plans” in heading and “defined benefit plan other” for “plan other” in introductory provisions.

    Enacted provision · exact public law section
    (A) Subparagraph (A) of section 412(c)(10) is amended— (i) by inserting “defined benefit” before “plan other”, and (ii) by striking “Plans” in the heading and inserting “Defined benefit plans”.

40. 1989

    Revenue Reconciliation Act of 1989

    Pub. L. 101–239 § 7881(b)(2)(A) · 103 Stat. 2106

    1. Substituted · 26 U.S.C. § 412(c)(10)(B)

       Pub. L. 101–239, § 7881(b)(2)(A), substituted “Other” for “Multiemployer” in text

    2. Substituted · 26 U.S.C. § 412(c)(10)(B)

       Pub. L. 101–239, § 7881(b)(2)(A), substituted “plan not described in subparagraph (A)” for “multiemployer plan” in text

    Source evidence

    Code amendment note
    Subsec. (c)(10)(B). Pub. L. 101–239, § 7881(b)(2)(A), substituted “Other” for “Multiemployer” in heading and “plan not described in subparagraph (A)” for “multiemployer plan” in text.

    Enacted provision · exact public law section
    (A) Subparagraph (B) of section 412(c)(10) is amended— 26 USC 412. (i) by striking “multiemployer plan” and inserting “plan not described in subparagraph (A)”, and (ii) by striking “Multiemployer” in the heading and inserting “Other”.

41. 1989

    Revenue Reconciliation Act of 1989

    Pub. L. 101–239 § 7881(b)(6)(A)(ii) · 103 Stat. 2106

    Substituted · 26 U.S.C. § 412(d)(1)(A)(ii)

    Pub. L. 101–239, § 7881(b)(6)(A)(ii), substituted “costs (including adjustments under subsection (b)(5)(B))” for “costs”

    Source evidence

    Code amendment note
    Subsec. (d)(1)(A)(ii). Pub. L. 101–239, § 7881(b)(6)(A)(ii), substituted “costs (including adjustments under subsection (b)(5)(B))” for “costs”.

    Enacted provision · exact public law section
    (ii) Clause (ii) of section 412(d)(1)(A) is amended by inserting “(including adjustments under subsection (b)(5)(B))” after “costs”.

42. 1989

    Revenue Reconciliation Act of 1989

    Pub. L. 101–239 § 7881(c)(1) · 103 Stat. 2106

    Substituted · 26 U.S.C. § 412(f)(4)(A)

    Pub. L. 101–239, § 7881(c)(1), substituted “for benefit liabilities” for “the benefit liabilities”

    Source evidence

    Code amendment note
    Subsec. (f)(4)(A). Pub. L. 101–239, § 7881(c)(1), substituted “for benefit liabilities” for “the benefit liabilities”.

    Enacted provision · exact public law section
    (1) The last sentence of section 412(f)(4)(A) is amended by striking “the benefit liabilities” and inserting “for benefit liabilities”.

43. 1989

    Revenue Reconciliation Act of 1989

    Pub. L. 101–239 § 7881(a)(1)(A) · 103 Stat. 2106

    Substituted · 26 U.S.C. § 412(l)(3)(C)(ii)(II)

    Pub. L. 101–239, § 7881(a)(1)(A), substituted “reducing (but not below zero)” for “reducing”

    Source evidence

    Code amendment note
    Subsec. (l)(3)(C)(ii)(II). Pub. L. 101–239, § 7881(a)(1)(A), substituted “reducing (but not below zero)” for “reducing”.

    Enacted provision · exact public law section
    (A) Subclause (II) of section 412(l)(3)(C)(ii) is amended by 26 USC 412. inserting “(but not below zero)” after “reducing”.

44. 1989

    Revenue Reconciliation Act of 1989

    Pub. L. 101–239 § 7881(a)(2)(A) · 103 Stat. 2106

    Substituted · 26 U.S.C. § 412(l)(4)(B)(i)

    Pub. L. 101–239, § 7881(a)(2)(A), substituted “liability and the unamortized portion of the unfunded existing benefit increase liability” for “liability”

    Source evidence

    Code amendment note
    Subsec. (l)(4)(B)(i). Pub. L. 101–239, § 7881(a)(2)(A), substituted “liability and the unamortized portion of the unfunded existing benefit increase liability” for “liability”.

    Enacted provision · exact public law section
    (A) Clause (i) of section 412(1)(4)(8) is amended by inserting “and the unamortized portion of the unfunded existing benefit increase liability” after “liability”.

45. 1989

    Revenue Reconciliation Act of 1989

    Pub. L. 101–239 § 7881(a)(3)(A) · 103 Stat. 2106

    Substituted · 26 U.S.C. § 412(l)(5)(C)

    Pub. L. 101–239, § 7881(a)(3)(A), substituted “the first plan year beginning after December 31, 1988” for “October 17, 1987”

    Source evidence

    Code amendment note
    Subsec. (l)(5)(C). Pub. L. 101–239, § 7881(a)(3)(A), substituted “the first plan year beginning after December 31, 1988” for “October 17, 1987”.

    Enacted provision · exact public law section
    (A) Section 412(l)(5)(C) is amended by striking “October 17, 1987” and inserting “the first plan year beginning after December 31, 1988”.

46. 1989

    Revenue Reconciliation Act of 1989

    Pub. L. 101–239 § 7881(a)(4)(A)(i) · 103 Stat. 2106

    Added · 26 U.S.C. § 412(l)(7)(D)(iii)(III)

    Pub. L. 101–239, § 7881(a)(4)(A)(i), added subcl. (III)

    Source evidence

    Code amendment note
    Subsec. (l)(7)(D)(iii)(III). Pub. L. 101–239, § 7881(a)(4)(A)(i), added subcl. (III).

    Enacted provision · exact public law section
    (i) by striking “and” at the end of clause (iii)(I), by striking the period at the end of clause (iii)(II) and inserting “, and”, and by adding at the end of clause (iii) the following new subclause: “(III) has years of service greater than the minimum years of service necessary for eligibility to participate in the plan.”, and

47. 1989

    Revenue Reconciliation Act of 1989

    Pub. L. 101–239 § 7881(a)(4)(A)(ii) · 103 Stat. 2106

    Added · 26 U.S.C. § 412(l)(7)(D)(iv)

    Pub. L. 101–239, § 7881(a)(4)(A)(ii), added cl. (iv)

    Source evidence

    Code amendment note
    Subsec. (l)(7)(D)(iv). Pub. L. 101–239, § 7881(a)(4)(A)(ii), added cl. (iv).

    Enacted provision · exact public law section
    (ii) by adding at the end thereof the following new clause: “(iv) Election.— An employer may elect not to have this subparagraph apply. Such an election, once made, may be revoked only with the consent of the Secretary.”.

48. 1989

    Revenue Reconciliation Act of 1989

    Pub. L. 101–239 § 7881(a)(5)(A)(i) · 103 Stat. 2106

    Struck · 26 U.S.C. § 412(l)(8)(A)(ii)

    Pub. L. 101–239, § 7881(a)(5)(A)(i), struck out “reduced by any credit balance in the funding standard account” after “under subsection (c)(2)”

    Source evidence

    Code amendment note
    Subsec. (l)(8)(A)(ii). Pub. L. 101–239, § 7881(a)(5)(A)(i), struck out “reduced by any credit balance in the funding standard account” after “under subsection (c)(2)”.

    Enacted provision · exact public law section
    (i) by striking “reduced by any credit balance in the funding standard account” in subparagraph (A)(ii), and

49. 1989

    Revenue Reconciliation Act of 1989

    Pub. L. 101–239 § 7881(a)(5)(A)(ii) · 103 Stat. 2106

    Added · 26 U.S.C. § 412(l)(8)(E)

    Pub. L. 101–239, § 7881(a)(5)(A)(ii), added subpar. (E)

    Source evidence

    Code amendment note
    Subsec. (l)(8)(E). Pub. L. 101–239, § 7881(a)(5)(A)(ii), added subpar. (E).

    Enacted provision · exact public law section
    (ii) by adding at the end thereof the following new subparagraph: “(E) Deduction for credit balances.— For purposes of this subsection, the amount determined under subparagraph (A)(ii) shall be reduced by any credit balance in the funding standard account. The Secretary may provide for such reduction for purposes of any other provision which references this subsection.”.

50. 1989

    Revenue Reconciliation Act of 1989

    Pub. L. 101–239 § 7881(b)(3)(A) · 103 Stat. 2106

    Substituted · 26 U.S.C. § 412(m)(1)

    Pub. L. 101–239, § 7881(b)(3)(A), substituted “defined benefit plan (other than” for “plan (other than” in introductory provisions

    Source evidence

    Code amendment note
    Subsec. (m)(1). Pub. L. 101–239, § 7881(b)(3)(A), substituted “defined benefit plan (other than” for “plan (other than” in introductory provisions.

    Enacted provision · exact public law section
    (A) Section 412(m)(1) is amended by inserting “defined benefit” before “plan (other”.

51. 1989

    Revenue Reconciliation Act of 1989

    Pub. L. 101–239 § 7881(b)(6)(A)(i) · 103 Stat. 2106

    Amended · 26 U.S.C. § 412(m)(1)(B)

    Pub. L. 101–239, § 7881(b)(6)(A)(i), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “the rate under subsection (b)(5).”

    Source evidence

    Code amendment note
    Subsec. (m)(1)(B). Pub. L. 101–239, § 7881(b)(6)(A)(i), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “the rate under subsection (b)(5).”

    Enacted provision · exact public law section
    (i) Subparagraph (B) of section 412(m)(1) is amended to read as follows: “(B) the rate of interest used under the plan in determining costs (including adjustments under subsection (b)(5)(B)).”.

52. 1989

    Revenue Reconciliation Act of 1989

    Pub. L. 101–239 § 7881(b)(4)(A) · 103 Stat. 2106

    Amended · 26 U.S.C. § 412(m)(4)(D)

    Pub. L. 101–239, § 7881(b)(4)(A), amended subpar. (D) generally. Prior to amendment, subpar. (D) read as follows: “In the case of a plan with any unpredictable contingent event benefit liabilities—

    Source evidence

    Code amendment note
    Subsec. (m)(4)(D). Pub. L. 101–239, § 7881(b)(4)(A), amended subpar. (D) generally. Prior to amendment, subpar. (D) read as follows: “In the case of a plan with any unpredictable contingent event benefit liabilities—

    “(i) such liabilities shall not be taken into account in computing the required annual payment under subparagraph (B), and “(ii) each required installment shall be increased by the greater of— “(I) the amount of benefits described in subsection (l)(5)(A)(i) paid during the 3-month period preceding the month in which the due date for such installment occurs, or “(II) 25 percent of the amount determined under subsection (l)(5)(A)(ii) for the plan year.”

    Enacted provision · exact public law section
    (A) Subparagraph (D) of section 412(m)(4) is amended to read as follows: “(D) Special rules for unpredictable contingent event benefits.— In the case of a plan to which subsection (1) applies for any calendar year and which has any unpredictable contingent event benefit liabilities— “(i) Liabilities not taken into account.— Such liabilities shall not be taken into account in computing the required annual payment under subparagraph (B). “(ii) Increase in installments.— Each required installment shall be increased by the greater of— “(I) the unfunded percentage of the amount of benefits described in subsection (l)(5)(A)(i) paid during the 3-month period preceding the month in which the due date for such installment occurs, or “(II) 25 percent of the amount determined under subsection (l)(5)(A)(ii) for the plan year. “(iii) Unfunded percentage.— For purposes of clause (ii)(I), the term ‘unfunded percentage’ means the percentage determined under subsection d)(5)(A)(i)(I) for the plan year. “(iv) Limitation on increase.— In no event shall the increases under clause (ii) exceed the amount necessary to increase the funded current liability percentage (within the meaning of subsection (1)(8)(B)) for the plan year to 100 percent.”.

53. 1994

    Retirement Protection Act of 1994

    Pub. L. 103–465 § 752(a) · 108 Stat. 4809

    1. Amended · 26 U.S.C. § 412(c)(5)

       Pub. L. 103–465, § 752(a), designated existing provisions as subpar. (A)

    2. Inserted · 26 U.S.C. § 412(c)(5)

       Pub. L. 103–465, § 752(a), inserted subpar. heading

    3. Added · 26 U.S.C. § 412(c)(5)

       Pub. L. 103–465, § 752(a), added subpar. (B)

    Source evidence

    Code amendment note
    Subsec. (c)(5). Pub. L. 103–465, § 752(a), designated existing provisions as subpar. (A), inserted subpar. heading, and added subpar. (B).

    Enacted provision · exact public law section
    (a) In General.— Paragraph (5) of section 412(c) is amended— (1) by striking “If the funding method” and inserting the following: “(A) In general.— If the funding method”, and (2) by adding at the end the following new subparagraph: “(B) Approval required for certain changes in assumptions by certain single-employer plans subject to additional funding requirement.— “(i) In general.— No actuarial assumption (other than the assumptions described in subsection (1)(7)(C)) used to determine the current liability for a plan to which this subparagraph applies may be changed without the approval of the Secretary. “(ii) Plans to which subparagraph applies.— This subparagraph shall apply to a plan only if— “(I) the plan is a defined Benefit plan (other than a multiemployer plan) to which title IV of the Employee Retirement Income Security Act of 1974 applies; “(II) the aggregate unfunded vested benefits as of the close of the preceding plan year (as determined under section 4006(a)(3)(E)(iii) of the Employee Retirement Income Security Act of 1974) of such plan and all other plans maintained by the contributing sponsors (as defined in section 4001(a)(13) of such Act) and members of such sponsors’ controlled groups (as defined in section 4001(a)(14) of such Act) which are covered by title IV of such Act (disregarding plans with no unfunded vested benefits) exceed $50,000,000; and “(III) the change in assumptions (determined after taking into account any changes in interest rate and mortality table) results in a decrease in the unfunded current liability of the plan for the current plan year that exceeds $50,000,000, or that exceeds $5,000,000 and that is 5 percent or more of the current liability of the plan before such change.”

54. 1994

    Retirement Protection Act of 1994

    Pub. L. 103–465 § 751(a)(10)(A) · 108 Stat. 4809

    Inserted · 26 U.S.C. § 412(c)(7)(A)(i)(I)

    Pub. L. 103–465, § 751(a)(10)(A), inserted “(including the expected increase in current liability due to benefits accruing during the plan year)” after “current liability”

    Source evidence

    Code amendment note
    Subsec. (c)(7)(A)(i)(I). Pub. L. 103–465, § 751(a)(10)(A), inserted “(including the expected increase in current liability due to benefits accruing during the plan year)” after “current liability”.

    Enacted provision · exact public law section
    (A) Subparagraph (A) of section 412(c)(7) is amended by inserting “(including the expected increase in current liability due to benefits accruing during the plan year)” after “current liability” in clause (i).

55. 1994

    Retirement Protection Act of 1994

    Pub. L. 103–465 § 751(a)(10)(C) · 108 Stat. 4809

    Amended · 26 U.S.C. § 412(c)(7)(B)

    Pub. L. 103–465, § 751(a)(10)(C), reenacted subpar. (B) heading without change and amended text generally. Prior to amendment, text read as follows: “For purposes of subparagraphs (A) and (D), the term ‘current liability’ has the meaning given such term by subsection (l)(7) (without regard to subparagraph (D) thereof).”

    Source evidence

    Code amendment note
    Subsec. (c)(7)(B). Pub. L. 103–465, § 751(a)(10)(C), reenacted subpar. (B) heading without change and amended text generally. Prior to amendment, text read as follows: “For purposes of subparagraphs (A) and (D), the term ‘current liability’ has the meaning given such term by subsection (l)(7) (without regard to subparagraph (D) thereof).”

    Enacted provision · exact public law section
    (C) Subparagraph (B) of section 412(c)(7) is amended to read as follows: “(B) Current liability.— For purposes of subparagraph (D) and subclause (I) of subparagraph (A)(i), the term ‘current liability’ has the meaning given such term by subsection (1)(7) (without regard to subparagraphs (C) and (D) thereof) and using the rate of interest used under subsection (b)(5)(B).”

56. 1994

    Retirement Protection Act of 1994

    Pub. L. 103–465 § 751(a)(10)(B) · 108 Stat. 4809

    Added · 26 U.S.C. § 412(c)(7)(E)

    Pub. L. 103–465, § 751(a)(10)(B), added subpar. (E)

    Source evidence

    Code amendment note
    Subsec. (c)(7)(E). Pub. L. 103–465, § 751(a)(10)(B), added subpar. (E).

    Enacted provision · exact public law section
    (B) Section 412(c)(7) is amended by adding at the end the following new subparagraph: “(E) Minimum amount.— “(i) In general.— In no event shall the full-funding limitation determined under subparagraph (A) be less than the excess (if any) of— “(I) 90 percent of the current liability of the plan (including the expected increase in current liability due to benefits accruing during the plan year), over “(II) the value of the plan’s assets determined under paragraph (2). “(ii) Current liability; assets.— For purposes of clause (i)— “(I) the term ‘current liability’ has the meaning given such term by subsection (1)(7) (without regard to subparagraph (D) thereof), and “(II) assets shall not be reduced by any credit balance in the funding standard account.”

57. 1994

    Retirement Protection Act of 1994

    Pub. L. 103–465 § 753(a) · 108 Stat. 4809

    Added · 26 U.S.C. § 412(c)(12)

    Pub. L. 103–465, § 753(a), added par. (12)

    Source evidence

    Code amendment note
    Subsec. (c)(12). Pub. L. 103–465, § 753(a), added par. (12).

    Enacted provision · exact public law section
    (a) In General.— Section 412(c) is amended by adding at the 26 USC 412. end the following new paragraph: “(12) Anticipation of benefit increases effective in the future.— In determining projected benefits, the funding method of a collectively bargained plan described in section 413(a) (other than a multiemployer plan) shall anticipate benefit increases scheduled to take effect during the term of the collective bargaining agreement applicable to the plan.”

58. 1994

    Retirement Protection Act of 1994

    Pub. L. 103–465 § 751(a)(1)(A) · 108 Stat. 4809

    1. Substituted · 26 U.S.C. § 412(l)(1)

       Pub. L. 103–465, § 751(a)(1)(A), (2)(B), in introductory provisions, substituted “to which this subsection applies under paragraph (9)” for “which has an unfunded current liability”

    2. Amended · 26 U.S.C. § 412(l)(1)

       Pub. L. 103–465, § 751(a)(1)(A), (2)(B), in introductory provisions, amended concluding provisions generally. Prior to amendment, concluding provisions read as follows: “Such increase shall not exceed the amount necessary to increase the funded current liability percentage to 100 percent.”

    Source evidence

    Code amendment note
    Subsec. (l)(1). Pub. L. 103–465, § 751(a)(1)(A), (2)(B), in introductory provisions, substituted “to which this subsection applies under paragraph (9)” for “which has an unfunded current liability”, and amended concluding provisions generally. Prior to amendment, concluding provisions read as follows: “Such increase shall not exceed the amount necessary to increase the funded current liability percentage to 100 percent.”

    Enacted provision · exact public law section
    (A) In general.— Paragraph (1) of section 412(1) (relating to additional funding requirements for plans which are not multiemployer plans) is amended by striking “which has an unfunded current liability” and inserting “to which this subsection applies under paragraph (9)”.

59. 1994

    Retirement Protection Act of 1994

    Pub. L. 103–465 § 751(a)(2)(A) · 108 Stat. 4809

    Amended · 26 U.S.C. § 412(l)(1)(A)(ii)

    Pub. L. 103–465, § 751(a)(2)(A), amended cl. (ii) generally. Prior to amendment, cl. (ii) read as follows: “the sum of the charges for such plan year under subparagraphs (B) (other than clauses (iv) and (v) thereof), (C), and (D) of subsection (b)(2), reduced by the sum of the credits for such plan year under subparagraph (B)(i) of subsection (b)(3), plus”

    Source evidence

    Code amendment note
    Subsec. (l)(1)(A)(ii). Pub. L. 103–465, § 751(a)(2)(A), amended cl. (ii) generally. Prior to amendment, cl. (ii) read as follows: “the sum of the charges for such plan year under subparagraphs (B) (other than clauses (iv) and (v) thereof), (C), and (D) of subsection (b)(2), reduced by the sum of the credits for such plan year under subparagraph (B)(i) of subsection (b)(3), plus”.

    Enacted provision · exact public law section
    (A) Clause (ii) of section 412(1)(1)(A) is amended to 26 USC 412. read as follows: “(ii) the sum of the charges for such plan year under subsection (b)(2), reduced by the sum of the credits for such plan year under subparagraph (B) of subsection (b)(3), plus”.

60. 1994

    Retirement Protection Act of 1994

    Pub. L. 103–465 § 751(a)(3) · 108 Stat. 4809

    Added · 26 U.S.C. § 412(l)(2)(C)

    Pub. L. 103–465, § 751(a)(3), added subpar. (C)

    Source evidence

    Code amendment note
    Subsec. (l)(2)(C). Pub. L. 103–465, § 751(a)(3), added subpar. (C).

    Enacted provision · exact public law section
    (3) Amendment to deficit reduction contribution.— Paragraph (2) of section 412(1) is amended— (A) by striking “plus” at the end of subparagraph (A); (B) by striking the period at the end or subparagraph (B) and inserting “, plus”; and (C) by adding at the end the following new subparagraph: “(C) the expected increase in current liability due to benefits accruing during the plan year.”

61. 1994

    Retirement Protection Act of 1994

    Pub. L. 103–465 § 751(a)(7)(B)(i) · 108 Stat. 4809

    Added · 26 U.S.C. § 412(l)(2)(D)

    Pub. L. 103–465, § 751(a)(7)(B)(i), added subpar. (D)

    Source evidence

    Code amendment note
    Subsec. (l)(2)(D). Pub. L. 103–465, § 751(a)(7)(B)(i), added subpar. (D).

    Enacted provision · exact public law section
    (i) In general.— Paragraph (2) of section 412(1), as amended by paragraph (3), is amended by striking “plus” at the end of subparagraph (B), by striking the period at the end of subparagraph (C) and inserting “, and”, and by adding at the end the following new subparagraph: “(D) the aggregate of the unfunded mortality increase amounts.”

62. 1994

    Retirement Protection Act of 1994

    Pub. L. 103–465 § 751(a)(4)(A) · 108 Stat. 4809

    Added · 26 U.S.C. § 412(l)(3)(D); 26 U.S.C. § 412(l)(3)(E)

    Pub. L. 103–465, § 751(a)(4)(A), added subpars. (D) and (E)

    Source evidence

    Code amendment note
    Subsec. (l)(3)(D), (E). Pub. L. 103–465, § 751(a)(4)(A), added subpars. (D) and (E).

    Enacted provision · exact public law section
    (A) Paragraph (3) of section 412(1) is amended by adding at the end the following new subparagraphs: “(D) Special rule for required changes in actuarial assumptions.— “(i) In general.— The unfunded old liability amount with respect to any plan for any plan year shall be increased by the amount necessary to amortize the amount of additional unfunded old liability under the plan in equal annual installments over a period of 12 plan years (beginning with the first plan year beginning after December 31, 1994). “(ii) Additional unfunded old liability.— For purposes of clause (i), the term ‘additional unfunded old liability’ means the amount (if any) by which— “(I) the current liability of the plan as of the beginning of the first plan year beginning after December 31, 1994, valued using the assumptions required by paragraph (7)(C) as in effect for plan years beginning after December 31, 1994, exceeds “(II) the current liability of the plan as of the beginning of such first plan year, valued using the same assumptions used under subclause (I) (other than the assumptions required by paragraph (7)(C)), using the prior interest rate, and using such mortality assumptions as were used to determine current liability for the first plan year beginning after December 31, 1992. “(iii) Prior interest rate.— For purposes of clause (ii), the term ‘prior interest rate’ means the rate of interest that is the same percentage of the weighted average under subsection (b)(5)(B)(ii)(I) for the first plan year beginning after December 31, 1994, as the rate of interest used by the plan to determine current liability for the first plan year beginning after December 31, 1992, is of the weighted average under subsection (b)(5)(B)(ii)(I) for such first plan year beginning after December 31, 1992. “(E) Optional rule for additional unfunded old liability.— “(i) In general.— If an employer makes an election under clause (ii), the additional unfunded old liability for purposes of subparagraph (D) shall be the amount (if any) by which— “(I) the unfunded current liability of the plan as of the beginning of the first plan year beginning after December 31, 1994, valued using the assumptions required by paragraph (7)(C) as in effect for plan years beginning after December 31, 1994, exceeds “(II) the unamortized portion of the unfunded old liability under the plan as of the beginning of the first plan year beginning after December 31, 1994. “(ii) Election.— “(I) An employer may irrevocably elect to apply the provisions of this subparagraph as of the beginning of the first plan year beginning after December 31, 1994. “(II) If an election is made under this clause, the increase under paragraph (1) for any plan year beginning after December 31, 1994, and before January 1, 2002. to which this subsection applies (without regard to this subclause) shall not be less than the increase that would be required under paragraph (1) if the provisions of this title as in effect for the last plan year beginning before January 1, 1995, had remained in effect”

63. 1994

    Retirement Protection Act of 1994

    Pub. L. 103–465 § 751(a)(4)(B) · 108 Stat. 4809

    Inserted · 26 U.S.C. § 412(l)(4)(B)(i)

    Pub. L. 103–465, § 751(a)(4)(B), (7)(B)(iii), inserted “, the unamortized portion of the additional unfunded old liability, the unamortized portion of each unfunded mortality increase,” after “old liability”

    Source evidence

    Code amendment note
    Subsec. (l)(4)(B)(i). Pub. L. 103–465, § 751(a)(4)(B), (7)(B)(iii), inserted “, the unamortized portion of the additional unfunded old liability, the unamortized portion of each unfunded mortality increase,” after “old liability”.

    Enacted provision · exact public law section
    (B) Clause (i) of section 412(1)(4)(B) is amended by 26 USC 412. inserting “, the unamortized portion of the additional unfunded old liability,” after “old liability”.

64. 1994

    Retirement Protection Act of 1994

    Pub. L. 103–465 § 751(a)(5) · 108 Stat. 4809

    1. Substituted · 26 U.S.C. § 412(l)(4)(C)

       Pub. L. 103–465, § 751(a)(5), substituted “.40” for “.25” in cl. (ii)

    2. Substituted · 26 U.S.C. § 412(l)(4)(C)

       Pub. L. 103–465, § 751(a)(5), substituted “60” for “35” in cl. (ii)

    Source evidence

    Code amendment note
    Subsec. (l)(4)(C). Pub. L. 103–465, § 751(a)(5), substituted “.40” for “.25” in cl. (i) and “60” for “35” in cl. (ii).

    Enacted provision · exact public law section
    (5) Applicable percentage for determining unfunded new liability amount.— Subparagraph (C) of section 412(1)(4) is amended— (A) by striking “.25” and inserting “.40”, and (B) by striking “35” and inserting “60”.

65. 1994

    Retirement Protection Act of 1994

    Pub. L. 103–465 § 751(a)(6)(A)(i) · 108 Stat. 4809

    Substituted · 26 U.S.C. § 412(l)(5)(A)

    Pub. L. 103–465, § 751(a)(6)(A)(i), substituted “greatest of” for “greater of” in introductory provisions

    Source evidence

    Code amendment note
    Subsec. (l)(5)(A). Pub. L. 103–465, § 751(a)(6)(A)(i), substituted “greatest of” for “greater of” in introductory provisions.

    Enacted provision · exact public law section
    (i) by striking “greater of” and inserting “greatest of” before clause (i);

66. 1994

    Retirement Protection Act of 1994

    Pub. L. 103–465 § 751(a)(6)(A)(ii) · 108 Stat. 4809

    Added · 26 U.S.C. § 412(l)(5)(A)(iii)

    Pub. L. 103–465, § 751(a)(6)(A)(ii)–(iv), added cl. (iii)

    Source evidence

    Code amendment note
    Subsec. (l)(5)(A)(iii). Pub. L. 103–465, § 751(a)(6)(A)(ii)–(iv), added cl. (iii).

    Enacted provision · exact public law section
    (ii) by striking “or” at the end of clause (i);

67. 1994

    Retirement Protection Act of 1994

    Pub. L. 103–465 § 751(a)(6)(B) · 108 Stat. 4809

    Added · 26 U.S.C. § 412(l)(5)(E)

    Pub. L. 103–465, § 751(a)(6)(B), added subpar. (E)

    Source evidence

    Code amendment note
    Subsec. (l)(5)(E). Pub. L. 103–465, § 751(a)(6)(B), added subpar. (E).

    Enacted provision · exact public law section
    (B) Paragraph (5) of section 412(1) is amended by adding at the end the following new subparagraph: “(E) Limitation.— The present value of the amounts described in subparagraph (A) with respect to any one event shall not exceed the unpredictable contingent event benefit liabilities attributable to that event”

68. 1994

    Retirement Protection Act of 1994

    Pub. L. 103–465 § 751(a)(7)(A) · 108 Stat. 4809

    Amended · 26 U.S.C. § 412(l)(7)(C)

    Pub. L. 103–465, § 751(a)(7)(A), amended subpar. (C) generally. Prior to amendment, subpar. (C) read as follows: “(C) Interest rates used.—The rate of interest used to determine current liability shall be the rate of interest used under subsection (b)(5).”

    Source evidence

    Code amendment note
    Subsec. (l)(7)(C). Pub. L. 103–465, § 751(a)(7)(A), amended subpar. (C) generally. Prior to amendment, subpar. (C) read as follows: “(C) Interest rates used.—The rate of interest used to determine current liability shall be the rate of interest used under subsection (b)(5).”

    Enacted provision · exact public law section
    (A) In general.— Subparagraph (C) of section 412(1)(7) is amended to read as follows: “(C) Interest rate and mortality assumptions used.— Effective for plan years beginning after December 31, 1994— “(i) Interest rate.— “(I) In general.— The rate of interest used to determine current liability under this subsection shall be the rate of interest used under subsection (b)(5), except that the highest rate in the permissible range under subparagraph (B)(ii) thereof shall not exceed the specified percentage under subclause (II) of the weighted average referred to in such subparagraph. “(II) Specified percentage.— For purposes of subclause (I), the specified percentage shall be determined as follows: “In the case of plan year beginning in calendar year: The specified percentage is:  1995 109  1996 108  1997 107  1998 106  1999 and thereafter 105. “(ii) Mortality tables.— “(I) Commissioners’ standard table.— In the case of plan years beginning before the first plan year to which the first tables prescribed under subclause (II) apply, the mortality table used in determining current liability under this subsection shall be the table prescribed by the Secretary which is based on the prevailing commissioners’ standard table (described in section 807(d)(5)(A)) used to determine reserves for group annuity contracts issued on January 1, 1993. “(II) Secretarial authority.— The Secretary may by regulation prescribe for plan years beginning after December 31, 1999, mortality tables to be used in determining current liability under this subsection. Such tables shall be based upon the actual experience of pension plans and projected trends in such experience. In prescribing such tables, the Secretary shall take into account results of available independent studies of mortality of individuals covered by pension plans. “(III) Periodic review.— The Secretary shall periodically (at least every 5 years) review any tables in effect under this subsection and shall, to the extent the Secretary determines necessary, by regulation update the tables to reflect the actual experience of pension plans and projected trends in such experience. “(iii) Separate mortality tables for the disabled.— Notwithstanding clause (ii)— “(I) In general.— In the case of plan years beginning after December 31, 1995, the Secretary shall establish mortality tables which may be used (in lieu of the tables under clause (ii)) to determine current liability under this subsection for individuals who are entitled to benefits under the plan on account of disability. The Secretary shall establish separate tables for individuals whose disabilities occur in plan years beginning before January 1, 1995, and for individuals whose disabilities occur in plan years beginning on or after such date. “(II) Special rule for disabilities occurring after 1994.— In the case of disabilities occurring in plan years beginning after December 31, 1994, the tables under subclause (I) shall apply only with respect to individuals described in such subclause who are disabled within the meaning of title II of the Social Security Act and the regulations thereunder. “(III) Plan years beginning in 1995.— In the case of any plan year beginning in 1995, a plan may use its own mortality assumptions for individuals who are entitled to benefits under the plan on account of disability.”

69. 1994

    Retirement Protection Act of 1994

    Pub. L. 103–465 § 751(a)(1)(B) · 108 Stat. 4809

    Added · 26 U.S.C. § 412(l)(9)

    Pub. L. 103–465, § 751(a)(1)(B), added par. (9)

    Source evidence

    Code amendment note
    Subsec. (l)(9). Pub. L. 103–465, § 751(a)(1)(B), added par. (9).

    Enacted provision · exact public law section
    (B) Plans to which requirement applies.— Section 412(1) is amended by adding at the end the following new paragraph: “(9) Applicability of subsection.— “(A) In general.— Except as provided in paragraph (6)(A), this subsection shall apply to a plan for any plan year if its funded current liability percentage for such year is less than 90 percent. “(B) Exception for certain plans at least so percent funded.— Subparagraph (A) shall not apply to a plan for a plan year if— “(i) the funded current liability percentage for the plan year is at least 80 percent and “(ii) such percentage for each of the 2 immediately preceding plan years (or each of the 2d and 3d immediately preceding plan years) is at least 90 percent “(C) Funded current liability percentage.— For purposes of subparagraphs (A) and (B), the term ‘funded current liability percentage’ has the meaning given such term by paragraph (8)(B), except that such percentage shall be determined for any plan year— “(i) without regard to paragraph (8)(E), and “(ii) by using the rate of interest which is the highest rate allowable for the plan year under paragraph (7)(C). “(D) Transition rules.— For purposes of this paragraph: “(i) Funded percentage for years before 1995.— The funded current liability percentage for any plan year beginning before January 1, 1995, shall be treated as not less than 90 percent only if for such plan year the plan met one of the following requirements (as in effect for such year): “(I) The full-funding limitation under subsection (c)(7) for the plan was zero. “(II) The plan had no additional funding requirement under this subsection (or would have had no such requirement if its funded current liability percentage had been determined under subparagraph (C)). “(III) The plan’s additional funding requirement under this subsection did not exceed the lesser of 0.5 percent of current liability or $5,000,000. “(ii) Special rule for 1995 and 1996.— For purposes of determining whether subparagraph (B) applies to any plan year beginning in 1995 or 1996, a plan shall be treated as meeting the requirements of subparagraph (B)(ii) if the plan met the requirements of clause (i) of this subparagraph for any two of the plan years beginning in 1992, 1993, and 1994 (whether or not consecutive).”

70. 1994

    Retirement Protection Act of 1994

    Pub. L. 103–465 § 751(a)(7)(B)(ii) · 108 Stat. 4809

    Added · 26 U.S.C. § 412(l)(10)

    Pub. L. 103–465, § 751(a)(7)(B)(ii), added par. (10)

    Source evidence

    Code amendment note
    Subsec. (l)(10). Pub. L. 103–465, § 751(a)(7)(B)(ii), added par. (10).

    Enacted provision · exact public law section
    (ii) Unfunded mortality increase amount.— Section 412(1), as amended by paragraph (1), is amended by adding at the end the following new paragraph: “(10) Unfunded mortality increase amount.— “(A) In general.— The unfunded mortality increase amount with respect to each unfunded mortality increase is the amount necessary to amortize such increase in equal annual installments over a period of 10 plan years (beginning with the first plan year for which a plan uses any new mortality table issued under paragraph (7)(C)(ii)(II) or (III)). “(B) Unfunded mortality increase.— For purposes of subparagraph (A), the term ‘unfunded mortality increase’ means an amount equal to the excess of— “(i) the current liability of the plan for the first plan year for which a plan uses any new mortality table issued under paragraph (7)(C)(ii)(II) or (III), over “(ii) the current liability of the plan for such plan year which would have been determined if the mortality table in effect for the preceding plan year had been used.”

71. 1994

    Retirement Protection Act of 1994

    Pub. L. 103–465 § 751(a)(8) · 108 Stat. 4809

    Added · 26 U.S.C. § 412(l)(11)

    Pub. L. 103–465, § 751(a)(8), added par. (11)

    Source evidence

    Code amendment note
    Subsec. (l)(11). Pub. L. 103–465, § 751(a)(8), added par. (11).

    Enacted provision · exact public law section
    (8) Transition rule.— Section 412(1), as amended by paragraph (7), is amended by adding at the end the following new paragraph: “(11) Phase-in of increases in funding required by retirement protection act of 1994.— “(A) In general— For any applicable plan year, at the election of the employer, the increase under paragraph (1) shall not exceed the greater of— “(i) the increase that would be required under paragraph (1) if the provisions of this title as in effect for plan years beginning before January 1, 1995, had remained in effect, or “(ii) the amount which, after taking into account charges (other than the additional charge under this subsection) and credits under subsection (b), is nec-essary to increase the funded current liability percentage (taking into account the expected increase in current liability due to benefits accruing during the plan year) for the applicable plan year to a percentage equal to the sum of the initial funded current liability percentage of the plan plus the applicable number of percentage points for such applicable plan year. “(B) Applicable number of percentage points.— “(i) Initial funded current liability percentage of 75 percent or less.— Except as provided in clause (ii), for plans with an initial funded current liability percentage of 75 percent or less, the applicable number of percentage points for the applicable plan year is: “In the case of applicable plan years beginning in: The applicable number of percentage points is:  1995 3  1996 6  1997 9  1998 12  1999 15  2000 19  2001 24. “(ii) Other cases.— In the case of a plan to which this clause applies, the applicable number of percentage points for any such applicable plan year is the sum of— “(I) 2 percentage points; “(II) the applicable number of percentage points (if any) under this clause for the preceding applicable plan year, “(III) the product of .10 multiplied by the excess (if any) of (a) 85 percentage points over (b) the sum of the initial funded current liability percentage and the number determined under subclause (II); “(IV) for applicable plan years beginning in 2000, 1 percentage point; and “(V) for applicable plan years beginning in 2001, 2 percentage points. “(iii) Plans to which clause (ii) applies.— “(I) In general.— Clause (ii) shall apply to a plan for an applicable plan year if the initial funded current liability percentage of such plan is more than 75 percent. “(II) Plans initially under clause(i).— In the case of a plan which (but for this subclause) has an initial funded current liability percentage of 75 percent or less, clause (ii) (and not clause (i)) shall apply to such plan with respect to applicable plan years beginning after the first applicable plan year for which the sum of the initial funded current liability percentage and the applicable number of percentage points (determined under clause (i)) exceeds 75 percent For purposes of applying clause (ii) to such a plan, the initial funded current liability percentage of such plan shall be treated as being the sum referred to in the preceding sentence. “(C) Definitions.— For purposes of this paragraph: “(i) The term ‘applicable plan year’ means a plan year beginning after December 31, 1994, and before January 1, 2002. “(ii) The term ‘initial funded current liability percentage’ means the funded current liability percentage as of the first day of the first plan year beginning after December 31, 1994.”

72. 1994

    Retirement Protection Act of 1994

    Pub. L. 103–465 § 754(a) · 108 Stat. 4809

    1. Inserted · 26 U.S.C. § 412(m)(1)

       Pub. L. 103–465, § 754(a), in introductory provisions, inserted “which has a funded current liability percentage (as defined in subsection (l)(8)) for the preceding plan year of less than 100 percent” before “fails”

    2. Substituted · 26 U.S.C. § 412(m)(1)

       Pub. L. 103–465, § 754(a), in introductory provisions, substituted “the plan year” for “any plan year”

    Source evidence

    Code amendment note
    Subsec. (m)(1). Pub. L. 103–465, § 754(a), in introductory provisions, inserted “which has a funded current liability percentage (as defined in subsection (l)(8)) for the preceding plan year of less than 100 percent” before “fails” and substituted “the plan year” for “any plan year”.

    Enacted provision · exact public law section
    (a) In General.— Paragraph (1) of section 412(m) is amended— (1) by inserting “which has a funded current liability percentage (as defined in subsection (1)(8)) for the preceding plan year of less than 100 percent” before “fails”, and (2) by striking “any plan year” and inserting “the plan year”.

73. 1994

    Retirement Protection Act of 1994

    Pub. L. 103–465 § 751(a)(6)(C)(i) · 108 Stat. 4809

    Substituted · 26 U.S.C. § 412(m)(4)(D)(ii)

    Pub. L. 103–465, § 751(a)(6)(C)(i), substituted “greatest of” for “greater of” in introductory provisions

    Source evidence

    Code amendment note
    Subsec. (m)(4)(D)(ii). Pub. L. 103–465, § 751(a)(6)(C)(i), substituted “greatest of” for “greater of” in introductory provisions.

    Enacted provision · exact public law section
    (i) by striking “greater of” and inserting “greatest of” before subclause (I);

74. 1994

    Retirement Protection Act of 1994

    Pub. L. 103–465 § 751(a)(6)(C)(ii) · 108 Stat. 4809

    Added · 26 U.S.C. § 412(m)(4)(D)(ii)(III)

    Pub. L. 103–465, § 751(a)(6)(C)(ii)–(iv), added subcl. (III)

    Source evidence

    Code amendment note
    Subsec. (m)(4)(D)(ii)(III). Pub. L. 103–465, § 751(a)(6)(C)(ii)–(iv), added subcl. (III).

    Enacted provision · exact public law section
    (ii) by striking “or” at the end of subclause (I);

75. 1994

    Retirement Protection Act of 1994

    Pub. L. 103–465 § 751(a)(9)(A) · 108 Stat. 4809

    1. Added · 26 U.S.C. § 412(m)(5); 26 U.S.C. § 412(m)(6)

       Pub. L. 103–465, § 751(a)(9)(A), added par. (5)

    2. Redesignated · 26 U.S.C. § 412(m)(5); 26 U.S.C. § 412(m)(6)

       Pub. L. 103–465, § 751(a)(9)(A), redesignated former par. (5) as (6)

    Source evidence

    Code amendment note
    Subsec. (m)(5), (6). Pub. L. 103–465, § 751(a)(9)(A), added par. (5) and redesignated former par. (5) as (6).

    Enacted provision · exact public law section
    (A) In general.— Section 412(m) is amended by 26 USC 412. redesignating paragraph (5) as paragraph (6) and by inserting after paragraph (4) the following new paragraph: “(5) Liquidity requirement.— “(A) In general.— A plan to which this paragraph applies shall be treated as failing to pay the full amount of any required installment to the extent that the value of the liquid assets paid in such installment is less than the liquidity shortfall (whether or not such liquidity shortfall exceeds the amount of such installment required to be paid but for this paragraph). “(B) Plans to which paragraph applies.— This paragraph shall apply to a defined benefit plan (other than a multiemployer plan or a plan described in subsection (1)(6)(A)) which— “(i) is required to pay installments under this subsection for a plan year, and “(ii) has a liquidity shortfall for any quarter during such plan year. “(C) Period of underpayment.— For purposes of paragraph (1), any portion of an installment that is treated as not paid under subparagraph (A) shall continue to be treated as unpaid until the close of the quarter in which the due date for such installment occurs. “(D) Limitation on increase.— If the amount of any required installment is increased by reason of subparagraph (A), in no event shall such increase exceed the amount which, when added to prior installments for the plan year, is necessary to increase the funded current liability percentage (taking into account the expected increase in current liability due to benefits accruing during the plan year) to 100 percent. “(E) Definitions.— For purposes of this paragraph: “(i) Liquidity shortfall.— The term ‘liquidity shortfall’ means, with respect to any required installment, an amount equal to the excess (as of the last day of the quarter for which such installment is made) of the base amount with respect to such quarter over the value (as of such last day) of the plan’s liquid assets. “(ii) Base amount.— “(I) In general.— The term ‘base amount’ means, with respect to any quarter, an amount equal to 3 times the sum of the adjusted disburse-ments from the plan for the 12 months ending on the last day of such quarter. “(II) Special rule.— If the amount determined under clause (i) exceeds an amount equal to 2 times the sum of the adjusted disbursements from the plan for the 36 months ending on the last day of the quarter and an enrolled actuary certifies to the satisfaction of the Secretary that such excess is the result of nonrecurring circumstances, the base amount with respect to such quarter shall be determined without regard to amounts related to those nonrecurring circumstances. “(iii) Disbursements from the plan.— The term ‘disbursements from the plan’ means all disbursements from the trust, including purchases of annuities, payments of single sums and other benefits, and administrative expenses. “(iv) Adjusted disbursements.— The term ‘adjusted disbursements’ means disbursements from the plan reduced by the product of— “(I) the plan’s funded current liability percentage (as defined in subsection (1)(8)) for the plan year, and “(II) the sum of the purchases of annuities, payments of single sums, and such other disbursements as the Secretary shall provide in regulations. “(v) Liquid assets.— The term liquid assets’ means cash, marketable securities and such other assets as specified by the Secretary in regulations. “(vi) Quarter.— The term ‘quarter’ means, with respect to any required installment, the 3-month period preceding the month in which the due date for such installment occurs. “(F) Regulations.— The Secretary may prescribe such regulations as are necessary to carry out this paragraph.”

76. 1994

    Retirement Protection Act of 1994

    Pub. L. 103–465 § 768(a)(1) · 108 Stat. 4809

    Inserted · 26 U.S.C. § 412(n)(2)

    Pub. L. 103–465, § 768(a)(1), inserted at end “This subsection shall not apply to any plan to which section 4021 of the Employee Retirement Income Security Act of 1974 does not apply (as such section is in effect on the date of the enactment of the Retirement Protection Act of 1994).”

    Source evidence

    Code amendment note
    Subsec. (n)(2). Pub. L. 103–465, § 768(a)(1), inserted at end “This subsection shall not apply to any plan to which section 4021 of the Employee Retirement Income Security Act of 1974 does not apply (as such section is in effect on the date of the enactment of the Retirement Protection Act of 1994).”

    Enacted provision · exact public law section
    (1) Clarification of applicability of provision.— Paragraph 26 USC 412. (2) of section 412(n) is amended by adding at the end the following new sentence: “This subsection shall not apply to any plan to which section 4021 of the Employee Retirement Income Security Act of 1974 does not apply (as such section is in effect on the date of the enactment of the Retirement Protection Act of 1994).”.

77. 1994

    Retirement Protection Act of 1994

    Pub. L. 103–465 § 768(a)(2) · 108 Stat. 4809

    Amended · 26 U.S.C. § 412(n)(3)

    Pub. L. 103–465, § 768(a)(2), reenacted par. (3) heading without change and amended text generally. Prior to amendment, text read as follows: “For purposes of paragraph (1), the amount of the lien shall be equal to the lesser of—

    Source evidence

    Code amendment note
    Subsec. (n)(3). Pub. L. 103–465, § 768(a)(2), reenacted par. (3) heading without change and amended text generally. Prior to amendment, text read as follows: “For purposes of paragraph (1), the amount of the lien shall be equal to the lesser of—

    “(A) the amount by which the unpaid balances described in paragraph (1)(B) (including interest) exceed $1,000,000, or “(B) the aggregate unpaid balance of required installments and other payments required under this section (including interest)— “(i) for plan years beginning after 1987, and “(ii) for which payment has not been made before the due date.”

    Enacted provision · exact public law section
    (2) Repeal of $1,000,000 offset.— Paragraph (3) of section 412(n) is amended to read as follows: 26 USC 412. “(3) Amount of lien.— For purposes of paragraph (1), the amount of the lien shall be equal to the aggregate unpaid balance of required installments and other payments required under this section (including interest)— “(A) for plan years beginning after 1987, and “(B) for which payment has not been made before the due date.”

78. 1994

    Retirement Protection Act of 1994

    Pub. L. 103–465 § 768(a)(3) · 108 Stat. 4809

    Struck · 26 U.S.C. § 412(n)(4)(B)

    Pub. L. 103–465, § 768(a)(3), struck out “60th day following the” before “due date”

    Source evidence

    Code amendment note
    Subsec. (n)(4)(B). Pub. L. 103–465, § 768(a)(3), struck out “60th day following the” before “due date”.

    Enacted provision · exact public law section
    (3) Repeal of 60-day delay.— Section 412(n)(4)(B) is amended by striking “60th day following the”.

79. 1997

    Pub. L. 105–34 § 1521(c)(1) · 111 Stat. 788

    Added · 26 U.S.C. § 412(b)(2)(E)

    Pub. L. 105–34, § 1521(c)(1), added subpar. (E)

    Source evidence

    Code amendment note
    Subsec. (b)(2)(E). Pub. L. 105–34, § 1521(c)(1), added subpar. (E).

    Enacted provision · exact public law section
    (1) Code amendment.— Section 412(b)(2) is amended by striking “and” at the end of subparagraph (C), by striking the period at the end of subparagraph (D) and inserting , and”, and by inserting after subparagraph (D) the following: “(E) the amount necessary to amortize in equal annual installments (until fully amortized) over a period of 20 years the contributions which would be required to be made under the plan but for the provisions of subsection (c)(7)(A)(i)(I)”.

80. 1997

    Pub. L. 105–34 § 1521(a)(A) · 111 Stat. 788

    Substituted · 26 U.S.C. § 412(c)(7)(A)(i)(I)

    Pub. L. 105–34, § 1521(a)(A), substituted “the applicable percentage” for “150 percent”

    Source evidence

    Code amendment note
    Subsec. (c)(7)(A)(i)(I). Pub. L. 105–34, § 1521(a)(A), substituted “the applicable percentage” for “150 percent”.

    Enacted provision · exact public law section
    (A) by striking “150 percent” in subparagraph (A)(i)(I) and inserting “the applicable percentage”, and

81. 1997

    Pub. L. 105–34 § 1521(c)(3)(A) · 111 Stat. 788

    1. Inserted · 26 U.S.C. § 412(c)(7)(D)

       Pub. L. 105–34, § 1521(c)(3)(A), inserted “and” at end of cl. (i)

    2. Substituted · 26 U.S.C. § 412(c)(7)(D)

       Pub. L. 105–34, § 1521(c)(3)(A), substituted a period for “, and” at end of cl. (ii)

    3. Struck · 26 U.S.C. § 412(c)(7)(D)

       Pub. L. 105–34, § 1521(c)(3)(A), struck out cl. (iii) which read as follows: “for the treatment under this section of contributions which would be required to be made under the plan but for the provisions of subparagraph (A)(i)(I).”

    Source evidence

    Code amendment note
    Subsec. (c)(7)(D). Pub. L. 105–34, § 1521(c)(3)(A), inserted “and” at end of cl. (i), substituted a period for “, and” at end of cl. (ii), and struck out cl. (iii) which read as follows: “for the treatment under this section of contributions which would be required to be made under the plan but for the provisions of subparagraph (A)(i)(I).”

    Enacted provision · exact public law section
    (A) Section 412(c)(7)(D) is amended by adding “and” at the end of clause (i), by striking and” at the end of clause (ii) and inserting a period, and by striking clause (iii).

82. 1997

    Pub. L. 105–34 § 1521(a)(B) · 111 Stat. 788

    Added · 26 U.S.C. § 412(c)(7)(F)

    Pub. L. 105–34, § 1521(a)(B), added subpar. (F)

    Source evidence

    Code amendment note
    Subsec. (c)(7)(F). Pub. L. 105–34, § 1521(a)(B), added subpar. (F).

    Enacted provision · exact public law section
    (B) by adding at the end the following: “(F) Applicable percentage.— For purposes of subparagraph (A)(i)(I), the applicable percentage shall be determined in accordance with the following table: “In the case of any plan year beginning in— The applicable percentage is— 1999 or 2000 155 2001 or 2002 160 2003 or 2004 165 2005 and succeeding years 170”.

83. 1997

    Pub. L. 105–34 § 1604(b)(2)(A) · 111 Stat. 788

    Substituted · 26 U.S.C. § 412(m)(5)(E)(ii)(II)

    Pub. L. 105–34, § 1604(b)(2)(A), substituted “subclause (I)” for “clause (i)”

    Source evidence

    Code amendment note
    Subsec. (m)(5)(E)(ii)(II). Pub. L. 105–34, § 1604(b)(2)(A), substituted “subclause (I)” for “clause (i)”.

    Enacted provision · exact public law section
    (A) Subclause (II) of section 412(m)(5)(E)(ii) is amended by striking “clause (i)” and inserting “subclause (I)”.

84. 2001

    Pub. L. 107–16 § 651(a)(1) · 115 Stat. 38

    Substituted · 26 U.S.C. § 412(c)(7)(A)(i)(I)

    Pub. L. 107–16, § 651(a)(1), substituted “in the case of plan years beginning before January 1, 2004, the applicable percentage” for “the applicable percentage”

    Source evidence

    Code amendment note
    Subsec. (c)(7)(A)(i)(I). Pub. L. 107–16, § 651(a)(1), substituted “in the case of plan years beginning before January 1, 2004, the applicable percentage” for “the applicable percentage”.

    Enacted provision · exact public law section
    (1) by striking “the applicable percentage” in subparagraph (A)(i)(I) and inserting “in the case of plan years beginning before January 1, 2004, the applicable percentage”; and

85. 2001

    Pub. L. 107–16 § 651(a)(2) · 115 Stat. 38

    1. Amended · 26 U.S.C. § 412(c)(7)(F)

       Pub. L. 107–16, § 651(a)(2), reenacted heading and introductory provisions without change and amended table generally

    2. Substituted · 26 U.S.C. § 412(c)(7)(F)

       Pub. L. 107–16, § 651(a)(2), reenacted heading and introductory provisions without change and substituting present provisions for provisions which had set out applicable percentage of 155 in the case of any plan year beginning in 1999 or 2000, 160 in the case of any plan year beginning in 2001 or 2002, 165 in the case of any plan year beginning in 2003 or 2004, and 170 in the case of any plan year beginning in 2005 and succeeding years

    Source evidence

    Code amendment note
    Subsec. (c)(7)(F). Pub. L. 107–16, § 651(a)(2), reenacted heading and introductory provisions without change and amended table generally, substituting present provisions for provisions which had set out applicable percentage of 155 in the case of any plan year beginning in 1999 or 2000, 160 in the case of any plan year beginning in 2001 or 2002, 165 in the case of any plan year beginning in 2003 or 2004, and 170 in the case of any plan year beginning in 2005 and succeeding years.

    Enacted provision · exact public law section
    (2) by amending subparagraph (F) to read as follows: “(F) Applicable percentage.— For purposes of subparagraph (A)(i)(I), the applicable percentage shall be determined in accordance with the following table: “In the case of any plan year beginning in— The applicable percentage is— 2002 165 2003 170.”.

86. 2001

    Pub. L. 107–16 § 661(a) · 115 Stat. 38

    Amended · 26 U.S.C. § 412(c)(9)

    Pub. L. 107–16, § 661(a), reenacted heading without change and amended text of par. (9) generally. Prior to amendment, text read as follows: “For purposes of this section, a determination of experience gains and losses and a valuation of the plan’s liability shall be made not less frequently than once every year, except that such determination shall be made more frequently to the extent required in particular cases under regulations prescribed by the Secretary.”

    Source evidence

    Code amendment note
    Subsec. (c)(9). Pub. L. 107–16, § 661(a), reenacted heading without change and amended text of par. (9) generally. Prior to amendment, text read as follows: “For purposes of this section, a determination of experience gains and losses and a valuation of the plan’s liability shall be made not less frequently than once every year, except that such determination shall be made more frequently to the extent required in particular cases under regulations prescribed by the Secretary.”

    Enacted provision · exact public law section
    (a) In General.— Paragraph (9) of section 412(c) (relating to 26 USC 412. annual valuation) is amended to read as follows: “(9) Annual valuation.— “(A) In general.— For purposes of this section, a determination of experience gains and losses and a valuation of the plan’s liability shall be made not less frequently than once every year, except that such determination shall be made more frequently to the extent required in particular cases under regulations prescribed by the Secretary. “(B) Valuation date.— “(i) Current year.— Except as provided in clause (ii), the valuation referred to in subparagraph (A) shall be made as of a date within the plan year to which the valuation refers or within one month prior to the beginning of such year. “(ii) Use of prior year valuation.— The valuation referred to in subparagraph (A) may be made as of a date within the plan year prior to the year to which the valuation refers if, as of such date, the value of the assets of the plan are not less than 125 percent of the plan’s current liability (as defined in paragraph (7)(B)). “(iii) Adjustments.— Information under clause (ii) shall, in accordance with regulations, be actuarially adjusted to reflect significant differences in participants.”.

87. 2002

    Job Creation and Worker Assistance Act of 2002

    Pub. L. 107–147 § 411(v)(1)(A) · 116 Stat. 21

    Substituted · 26 U.S.C. § 412(c)(9)(B)(ii)

    Pub. L. 107–147, § 411(v)(1)(A), substituted “100 percent” for “125 percent”

    Source evidence

    Code amendment note
    Subsec. (c)(9)(B)(ii). Pub. L. 107–147, § 411(v)(1)(A), substituted “100 percent” for “125 percent”.

    Enacted provision · exact public law section
    (A) in clause (ii) by striking “125 percent” and inserting “100 percent”, and

88. 2002

    Job Creation and Worker Assistance Act of 2002

    Pub. L. 107–147 § 411(v)(1)(B) · 116 Stat. 21

    Added · 26 U.S.C. § 412(c)(9)(B)(iv)

    Pub. L. 107–147, § 411(v)(1)(B), added cl. (iv)

    Source evidence

    Code amendment note
    Subsec. (c)(9)(B)(iv). Pub. L. 107–147, § 411(v)(1)(B), added cl. (iv).

    Enacted provision · exact public law section
    (B) by adding at the end the following new clause: “(i) Limitation.— A change in funding method to use a prior year valuation, as provided in clause (ii), may not be made unless as of the valuation date within the prior plan year, the value of the assets of the plan are not less than 125 percent of the plan's current liability (as defined in paragraph (7)(B)).”.

89. 2002

    Job Creation and Worker Assistance Act of 2002

    Pub. L. 107–147 § 405(a)(1) · 116 Stat. 21

    Added · 26 U.S.C. § 412(l)(7)(C)(i)(III)

    Pub. L. 107–147, § 405(a)(1), added subcl. (III)

    Source evidence

    Code amendment note
    Subsec. (l)(7)(C)(i)(III). Pub. L. 107–147, § 405(a)(1), added subcl. (III).

    Enacted provision · exact public law section
    (1) Special rule.— Clause (i) of section 412(1)(7)(C) (relating to interest rate) is amended by adding at the end the following new subclause: “(III) Special rule for 2002 and 2003.— For a plan year beginning in 2002 or 2003, notwithstanding subclause (I), in the case that the rate of interest used under subsection (b)(5) exceeds the highest rate permitted under subclause (I), the rate of interest used to determine current liability under this subsection may exceed the rate of interest otherwise permitted under subclause (I); except that such rate of interest shall not exceed 120 percent of the weighted average referred to in subsection (b)(5)(B)(ii).”.

90. 2002

    Job Creation and Worker Assistance Act of 2002

    Pub. L. 107–147 § 405(a)(2) · 116 Stat. 21

    Added · 26 U.S.C. § 412(m)(7)

    Pub. L. 107–147, § 405(a)(2), added par. (7)

    Source evidence

    Code amendment note
    Subsec. (m)(7). Pub. L. 107–147, § 405(a)(2), added par. (7).

    Enacted provision · exact public law section
    (2) Quarterly contributions.— Subsection (m) of section 412 is amended by adding at the end the following new paragraph: “(7) Special rules for 2002 and 2004.— In any case in which the interest rate used to determine current liability is determined under subsection (l)(7)(C)(i)(III)— “(A) 2002.— For purposes of applying paragraphs (1) and (4)(B)(ii) for plan years beginning in 2002, the current liability for the preceding plan year shall be redetermined using 120 percent as the specified percentage determined under subsection (l)(7)(C)(i)(II). “(B) 2004.— For purposes of applying paragraphs (1) and (4)(B)(ii) for plan years beginning in 2004, the current liability for the preceding plan year shall be redetermined using 105 percent as the specified percentage determined under subsection (l)(7)(C)(i)(II).”.

91. 2004

    Pension Funding Equity Act of 2004

    Pub. L. 108–218 § 101(b)(1)(C) · 118 Stat. 596

    Inserted · 26 U.S.C. § 412(b)(5)(B)(ii)(I)

    Pub. L. 108–218, § 101(b)(1)(C), inserted “or (III)” after “subclause (II)”

    Source evidence

    Code amendment note
    Subsec. (b)(5)(B)(ii)(I). Pub. L. 108–218, § 101(b)(1)(C), inserted “or (III)” after “subclause (II)”.

    Enacted provision · exact public law section
    (C) Conforming amendment.— Subclause (I) of section 412(b)(5)(B)(ii) of such Code is amended by inserting “or (III)” after “subclause (II)”.

92. 2004

    Pension Funding Equity Act of 2004

    Pub. L. 108–218 § 101(b)(1)(A) · 118 Stat. 596

    1. Added · 26 U.S.C. § 412(b)(5)(B)(ii)(II); 26 U.S.C. § 412(b)(5)(B)(ii)(III)

       Pub. L. 108–218, § 101(b)(1)(A), (B), added subcl. (II)

    2. Redesignated · 26 U.S.C. § 412(b)(5)(B)(ii)(II); 26 U.S.C. § 412(b)(5)(B)(ii)(III)

       Pub. L. 108–218, § 101(b)(1)(A), (B), redesignated former subcl. (II) as (III), and, in subcl. (III)

    3. Inserted · 26 U.S.C. § 412(b)(5)(B)(ii)(II); 26 U.S.C. § 412(b)(5)(B)(ii)(III)

       Pub. L. 108–218, § 101(b)(1)(A), (B), inserted “or (II)” after “permissible under subclause (I)”

    4. Substituted · 26 U.S.C. § 412(b)(5)(B)(ii)(II); 26 U.S.C. § 412(b)(5)(B)(ii)(III)

       Pub. L. 108–218, § 101(b)(1)(A), (B), substituted “such subclause” for “subclause (I)” before period at end

    Source evidence

    Code amendment note
    Subsec. (b)(5)(B)(ii)(II), (III). Pub. L. 108–218, § 101(b)(1)(A), (B), added subcl. (II), redesignated former subcl. (II) as (III), and, in subcl. (III), inserted “or (II)” after “permissible under subclause (I)” and substituted “such subclause” for “subclause (I)” before period at end.

    Enacted provision · exact public law section
    (A) In general.— Clause (ii) of section 412(b)(5)(B) of the Internal Revenue Code of 1986 26 USC 412. is amended by redesignating subclause (II) as subclause (III) and by inserting after subclause (I) the following new subclause: “(II) Special rule for years 2004 and 2005.— In the case of plan years beginning after December 31, 2003, and before January 1, 2006, the term ‘permissible range’ means a rate of interest which is not above, and not more than 10 percent below, the weighted average of the rates of interest on amounts invested conservatively in long-term investment grade corporate bonds during the 4-year period ending on the last day before the beginning of the plan year. Such rates shall be determined by the Secretary on the basis of 2 or more indices that are selected periodically by the Secretary and that are in the top 3 quality levels available. Public information. The Secretary shall make the permissible range, and the indices and methodology used to determine the average rate, publicly available.” .

93. 2004

    Pension Funding Equity Act of 2004

    Pub. L. 108–218 § 104(b) · 118 Stat. 596

    Added · 26 U.S.C. § 412(b)(7)(F)

    Pub. L. 108–218, § 104(b), added subpar. (F)

    Source evidence

    Code amendment note
    Subsec. (b)(7)(F). Pub. L. 108–218, § 104(b), added subpar. (F).

    Enacted provision · exact public law section
    (b) Internal Revenue Code of 1986.— Section 412(b)(7) of the Internal Revenue Code of 1986 26 USC 412. (relating to special rules for multiemployer plans) is amended by adding at the end the following new subparagraph: “(F) Election for deferral of charge for portion of net experience loss.— “(i) In general.— With respect to the net experience loss of an eligible multiemployer plan for the first plan year beginning after December 31, 2001, the plan sponsor may elect to defer up to 80 percent of the amount otherwise required to be charged under paragraph (2)(B)(iv) for any plan year beginning after June 30, 2003, and before July 1, 2005, to any plan year selected by the plan from either of the 2 immediately succeeding plan years. “(ii) Interest.— For the plan year to which a charge is deferred pursuant to an election under clause (i), the funding standard account shall be charged with interest on the deferred charge for the period of deferral at the rate determined under subsection (d) for multiemployer plans. “(iii) Restrictions on benefit increases.— No amendment which increases the liabilities of the plan by reason of any increase 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 during any period for which a charge is deferred pursuant to an election under clause (i), unless— “(I) the plan’s enrolled actuary certifies (in such form and manner prescribed by the Secretary) that the amendment provides for an increase in annual contributions which will exceed the increase in annual charges to the funding standard account attributable to such amendment, or “(II) the amendment is required by a collective bargaining agreement which is in effect on the date of enactment of this subparagraph. If a plan is amended during any such plan year in violation of the preceding sentence, any election under this paragraph shall not apply to any such plan year ending on or after the date on which such amendment is adopted. “(iv) Eligible multiemployer plan.— For purposes of this subparagraph, the term ‘eligible multiemployer plan’ means a multiemployer plan— “(I) which had a net investment loss for the first plan year beginning after December 31, 2001, of at least 10 percent of the average fair market value of the plan assets during the plan year, and “(II) with respect to which the plan’s enrolled actuary certifies (not taking into account the application of this subparagraph), on the basis of the acutuarial assumptions used for the last plan year ending before the date of the enactment of this subparagraph, that the plan is projected to have an accumulated funding deficiency (within the meaning of subsection (a)) for any plan year beginning after June 30, 2003, and before July 1, 2006. For purposes of subclause (I), a plan’s net investment loss shall be determined on the basis of the actual loss and not under any actuarial method used under subsection (c)(2). “(v) Exception to treatment of eligible multiemployer plan.— In no event shall a plan be treated as an eligible multiemployer plan under clause (iv) if— “(I) for any taxable year beginning during the 10-year period preceding the first plan year for which an election is made under clause (i), any employer required to contribute to the plan failed to timely pay any excise tax imposed under section 4971 with respect to the plan, “(II) for any plan year beginning after June 30, 1993, and before the first plan year for which an election is made under clause (i), the average contribution required to be made by all employers to the plan does not exceed 10 cents per hour or no employer is required to make contributions to the plan, or “(III) with respect to any of the plan years beginning after June 30, 1993, and before the first plan year for which an election is made under clause (i), a waiver was granted under section 412(d) or section 303 of the Employee Retirement Income Security Act of 1974 with respect to the plan or an extension of an amortization period was granted under subsection (e) or section 304 of such Act with respect to the plan. “(vi) Election.— An election under this subparagraph shall be made at such time and in such manner as the Secretary may prescribe.” .

94. 2004

    Pension Funding Equity Act of 2004

    Pub. L. 108–218 § 101(b)(2) · 118 Stat. 596

    Added · 26 U.S.C. § 412(l)(7)(C)(i)(IV)

    Pub. L. 108–218, § 101(b)(2), added subcl. (IV)

    Source evidence

    Code amendment note
    Subsec. (l)(7)(C)(i)(IV). Pub. L. 108–218, § 101(b)(2), added subcl. (IV).

    Enacted provision · exact public law section
    (2) Determination of current liability.— Clause (i) of section 412(l)(7)(C) of such Code is amended by adding at the end the following new subclause: “(IV) Special rule for 2004 and 2005.— For plan years beginning in 2004 or 2005, notwithstanding subclause (I), the rate of interest used to determine current liability under this subsection shall be the rate of interest under subsection (b)(5).” .

95. 2004

    Pension Funding Equity Act of 2004

    Pub. L. 108–218 § 102(b) · 118 Stat. 596

    Added · 26 U.S.C. § 412(l)(12)

    Pub. L. 108–218, § 102(b), added par. (12)

    Source evidence

    Code amendment note
    Subsec. (l)(12). Pub. L. 108–218, § 102(b), added par. (12).

    Enacted provision · exact public law section
    (b) Amendment of 1986 Code.— Section 412(l) of the Internal Revenue Code of 1986 26 USC 412. (relating to applicability of subsection) is amended by adding at the end the following new paragraph: “(12) Election for certain plans.— “(A) In general.— In the case of a defined benefit plan established and maintained by an applicable employer, if this subsection did not apply to the plan for the plan year beginning in 2000 (determined without regard to paragraph (6)), then, at the election of the employer, the increased amount under paragraph (1) for any applicable plan year shall be the greater of— “(i) 20 percent of the increased amount under paragraph (1) determined without regard to this paragraph, or “(ii) the increased amount which would be determined under paragraph (1) if the deficit reduction contribution under paragraph (2) for the applicable plan year were determined without regard to subparagraphs (A), (B), and (D) of paragraph (2). “(B) Restrictions on benefit increases.— No amendment which increases the liabilities of the plan by reason of any increase 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 during any applicable plan year, unless— “(i) the plan’s enrolled actuary certifies (in such form and manner prescribed by the Secretary) that the amendment provides for an increase in annual contributions which will exceed the increase in annual charges to the funding standard account attributable to such amendment, or “(ii) the amendment is required by a collective bargaining agreement which is in effect on the date of enactment of this subparagraph. If a plan is amended during any applicable plan year in violation of the preceding sentence, any election under this paragraph shall not apply to any applicable plan year ending on or after the date on which such amendment is adopted. “(C) Applicable employer.— For purposes of this paragraph, the term ‘applicable employer’ means an employer which is— “(i) a commercial passenger airline, “(ii) primarily engaged in the production or manufacture of a steel mill product or the processing of iron ore pellets, or “(iii) an organization described in section 501(c)(5) and which established the plan to which this paragraph applies on June 30, 1955. “(D) Applicable plan year.— For purposes of this paragraph— “(i) In general.— The term ‘applicable plan year’ means any plan year beginning after December 27, 2003, and before December 28, 2005, for which the employer elects the application of this paragraph. “(ii) Limitation on number of years which may be elected.— An election may not be made under this paragraph with respect to more than 2 plan years. “(E) Election.— An election under this paragraph shall be made at such time and in such manner as the Secretary may prescribe.” .

96. 2004

    Pension Funding Equity Act of 2004

    Pub. L. 108–218 § 101(b)(3) · 118 Stat. 596

    1. Amended · 26 U.S.C. § 412(m)(7)

       Pub. L. 108–218, § 101(b)(3), amended heading and text of par. (7) generally

    2. Substituted · 26 U.S.C. § 412(m)(7)

       Pub. L. 108–218, § 101(b)(3), substituting provisions relating to special rule for 2002 for provisions relating to special rules for 2002 and 2004

    Source evidence

    Code amendment note
    Subsec. (m)(7). Pub. L. 108–218, § 101(b)(3), amended heading and text of par. (7) generally, substituting provisions relating to special rule for 2002 for provisions relating to special rules for 2002 and 2004.

    Enacted provision · exact public law section
    (3) Conforming amendment.— Paragraph (7) of section 412(m) of such Code is amended to read as follows: “(7) Special rule for 2002.— In any case in which the interest rate used to determine current liability is determined under subsection (l)(7)(C)(i)(III), for purposes of applying paragraphs (1) and (4)(B)(ii) for plan years beginning in 2002, the current liability for the preceding plan year shall be redetermined using 120 percent as the specified percentage determined under subsection (l)(7)(C)(i)(II).” .

97. 2005

    Tax Technical Corrections Act of 2005

    Pub. L. 109–135 title IV § 412(x)(1) · 119 Stat. 2577

    Substituted · 26 U.S.C. § 412(m)(4)(B)(i)

    Pub. L. 109–135 substituted “subsection (d)” for “subsection (c)”

    Source evidence

    Code amendment note
    Subsec. (m)(4)(B)(i). Pub. L. 109–135 substituted “subsection (d)” for “subsection (c)”.

    Enacted provision · exact public law section
    (1) Clause (i) of section 412(m)(4)(B) is amended by striking “subsection (c)” and inserting “subsection (d)”.

98. 2006

    Pub. L. 109–280 § 111(a) · 120 Stat. 780

    1. Amended · 26 U.S.C. § 412

       Pub. L. 109–280, § 111(a), reenacted heading without change and amended text generally

    2. Substituted · 26 U.S.C. § 412

       Pub. L. 109–280, § 111(a), reenacted heading without change and substituting provisions relating to minimum funding standard requirement, liability for contributions, variance from minimum funding standards, miscellaneous rules, and plans to which section applies, consisting of subsecs. (a) to (e), for provisions relating to general rule for satisfaction of minimum funding standard, funding standard account, special rules, variance from minimum funding standard, extension of amortization periods, requirements relating to waivers and extensions, alternative minimum funding standard, exceptions, certain insurance contract plans, certain terminated multiemployer plans, financial assistance, additional funding requirements for plans which are not multiemployer plans, quarterly contributions requirement, and imposition of lien where failure to make required contributions, consisting of subsecs. (a) to (n)

    Source evidence

    Code amendment note
    Pub. L. 109–280, § 111(a), reenacted heading without change and amended text generally, substituting provisions relating to minimum funding standard requirement, liability for contributions, variance from minimum funding standards, miscellaneous rules, and plans to which section applies, consisting of subsecs. (a) to (e), for provisions relating to general rule for satisfaction of minimum funding standard, funding standard account, special rules, variance from minimum funding standard, extension of amortization periods, requirements relating to waivers and extensions, alternative minimum funding standard, exceptions, certain insurance contract plans, certain terminated multiemployer plans, financial assistance, additional funding requirements for plans which are not multiemployer plans, quarterly contributions requirement, and imposition of lien where failure to make required contributions, consisting of subsecs. (a) to (n).

    Enacted provision · exact public law section
    (a) New Minimum Funding Standards.— Section 412 of the Internal Revenue 26 USC 412. Code of 1986 (relating to minimum funding standards) is amended to read as follows: “SEC. 412. MINIMUM FUNDING STANDARDS. “(a) Requirement to Meet Minimum Funding Standard.— “(1) In general.— A plan to which this section applies shall satisfy the minimum funding standard applicable to the plan for any plan year. “(2) Minimum funding standard.— For purposes of paragraph (1), a plan shall be treated as satisfying the minimum funding standard for a plan year if— “(A) in the case of a defined benefit plan which is not a multiemployer plan, the employer makes contributions to or under the plan for the plan year which, in the aggregate, are not less than the minimum required contribution determined under section 430 for the plan for the plan year, “(B) in the case of a money purchase plan which is not a multiemployer plan, the employer makes contributions to or under the plan for the plan year which are required under the terms of the plan, and “(C) in the case of a multiemployer plan, the employers make contributions to or under the plan for any plan year which, in the aggregate, are sufficient to ensure that the plan does not have an accumulated funding deficiency under section 431 as of the end of the plan year. “(b) Liability for Contributions.— “(1) In general.— Except as provided in paragraph (2), the amount of any contribution required by this section (including any required installments under paragraphs (3) and (4) of section 430(j)) shall be paid by the employer responsible for making contributions to or under the plan. “(2) Joint and several liability where employer member of controlled group.— If the employer referred to in paragraph (1) is a member of a controlled group, each member of such group shall be jointly and severally liable for payment of such contributions. “(c) Variance From Minimum Funding Standards.— “(1) Waiver in case of business hardship.— “(A) In general.— If— “(i) an employer is (or in the case of a multiemployer plan, 10 percent or more of the number of employers contributing to or under the plan is) unable to satisfy the minimum funding standard for a plan year without temporary substantial business hardship (substantial business hardship in the case of a multiemployer plan), and “(ii) application of the standard would be adverse to the interests of plan participants in the aggregate, the Secretary may, subject to subparagraph (C), waive the requirements of subsection (a) for such year with respect to all or any portion of the minimum funding standard. The Secretary shall not waive the minimum funding standard with respect to a plan for more than 3 of any 15 (5 of any 15 in the case of a multiemployer plan) consecutive plan years “(B) Effects of waiver.— If a waiver is granted under subparagraph (A) for any plan year— “(i) in the case of a defined benefit plan which is not a multiemployer plan, the minimum required contribution under section 430 for the plan year shall be reduced by the amount of the waived funding deficiency and such amount shall be amortized as required under section 430(e), and “(ii) in the case of a multiemployer plan, the funding standard account shall be credited under section 431(b)(3)(C) with the amount of the waived funding deficiency and such amount shall be amortized as required under section 431(b)(2)(C). “(C) Waiver of amortized portion not allowed.— The Secretary may not waive under subparagraph (A) any portion of the minimum funding standard under subsection (a) for a plan year which is attributable to any waived funding deficiency for any preceding plan year. “(2) Determination of business hardship.— For purposes of this subsection, the factors taken into account in determining temporary substantial business hardship (substantial business hardship in the case of a multiemployer plan) shall include (but shall not be limited to) whether or not— “(A) the employer is operating at an economic loss, “(B) there is substantial unemployment or underemployment in the trade or business and in the industry concerned, “(C) the sales and profits of the industry concerned are depressed or declining, and “(D) it is reasonable to expect that the plan will be continued only if the waiver is granted. “(3) Waived funding deficiency.— For purposes of this section and part III of this subchapter, the term ‘waived funding deficiency’ means the portion of the minimum funding standard under subsection (a) (determined without regard to the waiver) for a plan year waived by the Secretary and not satisfied by employer contributions. “(4) Security for waivers for single-employer plans, consultations.— “(A) Security may be required.— “(i) In general.— Except as provided in subparagraph (C), the Secretary may require an employer maintaining a defined benefit plan which is a single-employer plan (within the meaning of section 4001(a)(15) of the Employee Retirement Income Security Act of 1974) to provide security to such plan as a condition for granting or modifying a waiver under paragraph (1). “(ii) Special rules.— Any security provided under clause (i) may be perfected and enforced only by the Pension Benefit Guaranty Corporation, or at the direction of the Corporation, by a contributing sponsor (within the meaning of section 4001(a)(13) of the Employee Retirement Income Security Act of 1974), or a member of such sponsor’s controlled group (within the meaning of section 4001(a)(14) of such Act). “(B) Consultation with the pension benefit guaranty corporation.— Except as provided in subparagraph (C), the Secretary shall, before granting or modifying a waiver under this subsection with respect to a plan described in subparagraph (A)(i)— “(i) provide the Pension Benefit Guaranty Corporation with— “(I) Notice. notice of the completed application for any waiver or modification, and “(II) Deadline. an opportunity to comment on such application within 30 days after receipt of such notice, and “(ii) consider— “(I) any comments of the Corporation under clause (i)(II), and “(II) any views of any employee organization (within the meaning of section 3(4) of the Employee Retirement Income Security Act of 1974) representing participants in the plan which are submitted in writing to the Secretary in connection with such application. Information provided to the Corporation under this subparagraph shall be considered tax return information and subject to the safeguarding and reporting requirements of section 6103(p). “(C) Exception for certain waivers.— “(i) In general.— The preceding provisions of this paragraph shall not apply to any plan with respect to which the sum of— “(I) the aggregate unpaid minimum required contributions (within the meaning of section 4971(c)(4)) for the plan year and all preceding plan years, and “(II) the present value of all waiver amortization installments determined for the plan year and succeeding plan years under section 430(e)(2), is less than $1,000,000. “(ii) Treatment of waivers for which applications are pending.— The amount described in clause (i)(I) shall include any increase in such amount which would result if all applications for waivers of the minimum funding standard under this subsection which are pending with respect to such plan were denied. “(5) Special rules for single-employer plans.— “(A) Application must be submitted before date 2½ months after close of year.— In the Deadline. case of a defined benefit plan which is not a multiemployer plan, no waiver may be granted under this subsection with respect to any plan for any plan year unless an application therefor is submitted to the Secretary not later than the 15th day of the 3rd month beginning after the close of such plan year. “(B) Special rule if employer is member of controlled group.— In the case of a defined benefit plan which is not a multiemployer plan, if an employer is a member of a controlled group, the temporary substantial business hardship requirements of paragraph (1) shall be treated as met only if such requirements are met— “(i) with respect to such employer, and “(ii) with respect to the controlled group of which such employer is a member (determined by treating all members of such group as a single employer). The Secretary may provide that an analysis of a trade or business or industry of a member need not be conducted if the Secretary determines such analysis is not necessary because the taking into account of such member would not significantly affect the determination under this paragraph. “(6) Advance notice.— “(A) In general.— The Secretary shall, before granting a waiver under this subsection, require each applicant to provide evidence satisfactory to the Secretary that the applicant has provided notice of the filing of the application for such waiver to each affected party (as defined in section 4001(a)(21) of the Employee Retirement Income Security Act of 1974). Such notice shall include a description of the extent to which the plan is funded for benefits which are guaranteed under title IV of the Employee Retirement Income Security Act of 1974 and for benefit liabilities. “(B) Consideration of relevant information.— The Secretary shall consider any relevant information provided by a person to whom notice was given under subparagraph (A). “(7) Restriction on plan amendments.— “(A) In general.— No amendment of a plan which increases the liabilities of the plan by reason of any increase 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 this subsection or an extension of time under section 431(d) is in effect with respect to the plan, or if a plan amendment described in subsection (d)(2) has been made at any time in the preceding 12 months (24 months in the case of a multiemployer plan). If a plan is amended 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. “(B) Exception.— Subparagraph (A) shall not apply to any plan amendment which— “(i) the Secretary determines to be reasonable and which provides for only de minimis increases in the liabilities of the plan, “(ii) only repeals an amendment described in subsection (d)(2), or “(iii) is required as a condition of qualification under part I of subchapter D, of chapter 1. “(d) Miscellaneous Rules.— “(1) Change in method or year.— If the funding method, the valuation date, or a plan year for a plan is changed, the change shall take effect only if approved by the Secretary. “(2) Certain retroactive plan amendments.— For purposes of this section, any amendment applying to a plan year which— “(A) is Deadline. adopted after the close of such plan year but no later than 2½ months after the close of the plan year (or, in the case of a multiemployer plan, no later than 2 years after the close of such plan year), “(B) does not reduce the accrued benefit of any participant determined as of the beginning of the first plan year to which the amendment applies, and “(C) does not reduce the accrued benefit of any participant determined as of the time of adoption except to the extent required by the circumstances, shall, at the election of the plan administrator, be deemed to have been made on the Notices. Deadline. first day of such plan year. No amendment described in this paragraph which reduces the accrued benefits of any participant shall take effect unless the plan administrator files a notice with the Secretary notifying him of such amendment and the Secretary has approved such amendment, or within 90 days after the date on which such notice was filed, failed to disapprove such amendment. No amendment described in this subsection shall be approved by the Secretary unless the Secretary determines that such amendment is necessary because of a temporary substantial business hardship (as determined under subsection (c)(2)) or a substantial business hardship (as so determined) in the case of a multiemployer plan and that a waiver under subsection

99. 2006

    Pub. L. 109–280 § 212(c) · 120 Stat. 780

    Added · 26 U.S.C. § 412(b)(3)

    Pub. L. 109–280, § 212(c), added par. (3)

    Source evidence

    Code amendment note
    Subsec. (b)(3). Pub. L. 109–280, § 212(c), added par. (3).

    Enacted provision · exact public law section
    (c) No Additional Contribution Required.— Section 412(b) of the Internal Revenue Code of 1986, 26 USC 412. as amended by this Act, is amended by adding at the end the following new paragraph: “(3) Multiemployer plans in critical status.— Paragraph (1) shall not apply in the case of a multiemployer plan for any plan year in which the plan is in critical status pursuant to section 432. This paragraph shall only apply if the plan adopts a rehabilitation plan in accordance with section 432(e) and complies with such rehabilitation plan (and any modifications of the plan).” .

100. 2006

     Pub. L. 109–280 § 301(b)(1) · 120 Stat. 780

     1. Substituted · 26 U.S.C. § 412(b)(5)(B)(ii)(II)

        Pub. L. 109–280, § 301(b)(1), substituted “, 2005, 2006, and 2007” for “and 2005” in text

     2. Substituted · 26 U.S.C. § 412(b)(5)(B)(ii)(II)

        Pub. L. 109–280, § 301(b)(1), substituted “2008” for “2006” in text

     Source evidence

     Code amendment note
     Subsec. (b)(5)(B)(ii)(II). Pub. L. 109–280, § 301(b)(1), substituted “, 2005, 2006, and 2007” for “and 2005” in heading and “2008” for “2006” in text.

     Enacted provision · exact public law section
     (1) Determination of range.— Subclause (II) of section 412(b)(5)(B)(ii) of the Internal Revenue Code of 1986 26 USC 412. is amended— (A) by striking “2006” and inserting “2008”, and (B) by striking “and 2005” in the heading and inserting “, 2005, 2006, and 2007”.

101. 2006

     Pub. L. 109–280 § 301(b)(2) · 120 Stat. 780

     1. Substituted · 26 U.S.C. § 412(l)(7)(C)(i)(IV)

        Pub. L. 109–280, § 301(b)(2), substituted “, 2005, 2006, and 2007” for “and 2005” in text

     2. Substituted · 26 U.S.C. § 412(l)(7)(C)(i)(IV)

        Pub. L. 109–280, § 301(b)(2), substituted “, 2005, 2006, or 2007” for “or 2005” in text

     Source evidence

     Code amendment note
     Subsec. (l)(7)(C)(i)(IV). Pub. L. 109–280, § 301(b)(2), substituted “, 2005, 2006, and 2007” for “and 2005” in heading and “, 2005, 2006, or 2007” for “or 2005” in text.

     Enacted provision · exact public law section
     (2) Determination of current liability.— Subclause (IV) of section 412(l)(7)(C)(i) of such Code is amended— (A) by striking “or 2005” and inserting “, 2005, 2006, or 2007”, and (B) by striking “and 2005” in the heading and inserting “, 2005, 2006, and 2007”.

102. 2008

     Worker, Retiree, and Employer Recovery Act of 2008

     Pub. L. 110–458 § 102(b)(2)(H) · 122 Stat. 5092

     Substituted · 26 U.S.C. § 412(b)(3)

     Pub. L. 110–458, § 102(b)(2)(H), substituted “the plan sponsor adopts” for “the plan adopts”

     Source evidence

     Code amendment note
     Subsec. (b)(3). Pub. L. 110–458, § 102(b)(2)(H), substituted “the plan sponsor adopts” for “the plan adopts”.

     Enacted provision · exact public law section
     (H) Section 412(b)(3) of the 1986 Code 26 USC 412. is amended by striking “the plan adopts” and inserting “the plan sponsor adopts”.

103. 2008

     Worker, Retiree, and Employer Recovery Act of 2008

     Pub. L. 110–458 § 101(a)(2)(A) · 122 Stat. 5092

     Substituted · 26 U.S.C. § 412(c)(1)(A)(i)

     Pub. L. 110–458, § 101(a)(2)(A), substituted “the plan are” for “the plan is”

     Source evidence

     Code amendment note
     Subsec. (c)(1)(A)(i). Pub. L. 110–458, § 101(a)(2)(A), substituted “the plan are” for “the plan is”.

     Enacted provision · exact public law section
     (A) Clause (i) of section 412(c)(1)(A) 26 USC 412. of the 1986 Code is amended by striking “the plan is” and inserting “the plan are”.

104. 2008

     Worker, Retiree, and Employer Recovery Act of 2008

     Pub. L. 110–458 § 101(a)(2)(B) · 122 Stat. 5092

     Inserted · 26 U.S.C. § 412(c)(7)(A)

     Pub. L. 110–458, § 101(a)(2)(B), inserted “which reduces the accrued benefit of any participant” after “subsection (d)(2)”

     Source evidence

     Code amendment note
     Subsec. (c)(7)(A). Pub. L. 110–458, § 101(a)(2)(B), inserted “which reduces the accrued benefit of any participant” after “subsection (d)(2)”.

     Enacted provision · exact public law section
     (B) Section 412(c)(7) of the 1986 Code is amended by inserting “which reduces the accrued benefit of any participant” after “subsection (d)(2)” in subparagraph (A).

105. 2008

     Worker, Retiree, and Employer Recovery Act of 2008

     Pub. L. 110–458 § 101(a)(2)(C) · 122 Stat. 5092

     Struck · 26 U.S.C. § 412(d)(1)

     Pub. L. 110–458, § 101(a)(2)(C), struck out “, the valuation date,” after “If the funding method”

     Source evidence

     Code amendment note
     Subsec. (d)(1). Pub. L. 110–458, § 101(a)(2)(C), struck out “, the valuation date,” after “If the funding method”.

     Enacted provision · exact public law section
     (C) Section 412(d)(1) of the 1986 Code is amended by striking “, the valuation date,”.

106. 2014

     Cooperative and Small Employer Charity Pension Flexibility Act

     Pub. L. 113–97 § 202(c)(2)(A) · 128 Stat. 1101

     Substituted · 26 U.S.C. § 412(a)(2)(A)

     Pub. L. 113–97, § 202(c)(2)(A), substituted “multiemployer plan or a CSEC plan” for “multiemployer plan”

     Source evidence

     Code amendment note
     Subsec. (a)(2)(A). Pub. L. 113–97, § 202(c)(2)(A), substituted “multiemployer plan or a CSEC plan” for “multiemployer plan”.

     Enacted provision · exact public law section
     (A) by striking “multiemployer plan” in paragraph (A) of subsection (a)(2), in clause (i) of subsection (c)(1)(B), the first place it appears in clause (i) of subsection (c)(1)(A), and the last place it appears in paragraph (2) of subsection (d), and inserting “multiemployer plan or a CSEC plan”,

     Effective date note
     Amendment by Pub. L. 113–97 applicable to years beginning after Dec. 31, 2013, see section 3 of Pub. L. 113–97, set out as a note under section 401 of this title.

107. 2014

     Cooperative and Small Employer Charity Pension Flexibility Act

     Pub. L. 113–97 § 202(c)(1) · 128 Stat. 1101

     Added · 26 U.S.C. § 412(a)(2)(D)

     Pub. L. 113–97, § 202(c)(1), added subpar. (D)

     Source evidence

     Code amendment note
     Subsec. (a)(2)(D). Pub. L. 113–97, § 202(c)(1), added subpar. (D).

     Enacted provision · exact public law section
     (1) In general.— Paragraph (2) of section 412(a) of the Internal Revenue Code of 1986 26 USC 412. is amended by striking “and” at the end of subparagraph (B), by striking the period at the end of subparagraph (C) and inserting “, and”, and by inserting at the end thereof the following new subparagraph: “(D) in the case of a CSEC plan, the employers make contributions to or under the plan for any plan year which, in the aggregate, are sufficient to ensure that the plan does not have an accumulated funding deficiency under section 433 as of the end of the plan year.” .

     Effective date note
     Amendment by Pub. L. 113–97 applicable to years beginning after Dec. 31, 2013, see section 3 of Pub. L. 113–97, set out as a note under section 401 of this title.

108. 2014

     Cooperative and Small Employer Charity Pension Flexibility Act

     Pub. L. 113–97 § 202(c)(2)(B) · 128 Stat. 1101

     Substituted · 26 U.S.C. § 412(b)(1)

     Pub. L. 113–97, § 202(c)(2)(B), substituted “430(j) or under section 433(f)” for “430(j)”

     Source evidence

     Code amendment note
     Subsec. (b)(1). Pub. L. 113–97, § 202(c)(2)(B), substituted “430(j) or under section 433(f)” for “430(j)”.

     Enacted provision · exact public law section
     (B) by striking “430(j)” in paragraph (1) of subsection (b) and inserting “430(j) or under section 433(f)”,

     Effective date note
     Amendment by Pub. L. 113–97 applicable to years beginning after Dec. 31, 2013, see section 3 of Pub. L. 113–97, set out as a note under section 401 of this title.

109. 2014

     Cooperative and Small Employer Charity Pension Flexibility Act

     Pub. L. 113–97 § 202(c)(2)(A) · 128 Stat. 1101

     Substituted · 26 U.S.C. § 412(c)(1)(A)(i)

     Pub. L. 113–97, § 202(c)(2)(A), substituted “multiemployer plan or a CSEC plan, 10 percent” for “multiemployer plan, 10 percent”

     Source evidence

     Code amendment note
     Subsec. (c)(1)(A)(i). Pub. L. 113–97, § 202(c)(2)(A), substituted “multiemployer plan or a CSEC plan, 10 percent” for “multiemployer plan, 10 percent”.

     Enacted provision · exact public law section
     (A) by striking “multiemployer plan” in paragraph (A) of subsection (a)(2), in clause (i) of subsection (c)(1)(B), the first place it appears in clause (i) of subsection (c)(1)(A), and the last place it appears in paragraph (2) of subsection (d), and inserting “multiemployer plan or a CSEC plan”,

     Effective date note
     Amendment by Pub. L. 113–97 applicable to years beginning after Dec. 31, 2013, see section 3 of Pub. L. 113–97, set out as a note under section 401 of this title.

110. 2014

     Cooperative and Small Employer Charity Pension Flexibility Act

     Pub. L. 113–97 § 202(c)(2)(A) · 128 Stat. 1101

     Substituted · 26 U.S.C. § 412(c)(1)(B)(i)

     Pub. L. 113–97, § 202(c)(2)(A), substituted “multiemployer plan or a CSEC plan” for “multiemployer plan”

     Source evidence

     Code amendment note
     Subsec. (c)(1)(B)(i). Pub. L. 113–97, § 202(c)(2)(A), substituted “multiemployer plan or a CSEC plan” for “multiemployer plan”.

     Enacted provision · exact public law section
     (A) by striking “multiemployer plan” in paragraph (A) of subsection (a)(2), in clause (i) of subsection (c)(1)(B), the first place it appears in clause (i) of subsection (c)(1)(A), and the last place it appears in paragraph (2) of subsection (d), and inserting “multiemployer plan or a CSEC plan”,

     Effective date note
     Amendment by Pub. L. 113–97 applicable to years beginning after Dec. 31, 2013, see section 3 of Pub. L. 113–97, set out as a note under section 401 of this title.

111. 2014

     Cooperative and Small Employer Charity Pension Flexibility Act

     Pub. L. 113–97 § 202(c)(2)(C) · 128 Stat. 1101

     Added · 26 U.S.C. § 412(c)(1)(B)(iii)

     Pub. L. 113–97, § 202(c)(2)(C), added cl. (iii)

     Source evidence

     Code amendment note
     Subsec. (c)(1)(B)(iii). Pub. L. 113–97, § 202(c)(2)(C), added cl. (iii).

     Enacted provision · exact public law section
     (C) (i) by striking “and” at the end of clause (i) of subsection (c)(1)(B), (ii) by striking the period at the end of clause (ii) of subsection (c)(1)(B) and inserting “, and”, and (iii) by inserting the following new clause after clause (ii) of subsection (c)(1)(B): “(iii) in the case of a CSEC plan, the funding standard account shall be credited under section 433(b)(3)(C) with the amount of the waived funding deficiency and such amount shall be amortized as required under section 433(b)(2)(C).” ,

     Effective date note
     Amendment by Pub. L. 113–97 applicable to years beginning after Dec. 31, 2013, see section 3 of Pub. L. 113–97, set out as a note under section 401 of this title.

112. 2014

     Cooperative and Small Employer Charity Pension Flexibility Act

     Pub. L. 113–97 § 202(c)(2)(D) · 128 Stat. 1101

     Substituted · 26 U.S.C. § 412(c)(4)(A)(i)

     Pub. L. 113–97, § 202(c)(2)(D), substituted “under paragraph (1) or for granting an extension under section 433(d)” for “under paragraph (1)”

     Source evidence

     Code amendment note
     Subsec. (c)(4)(A)(i). Pub. L. 113–97, § 202(c)(2)(D), substituted “under paragraph (1) or for granting an extension under section 433(d)” for “under paragraph (1)”.

     Enacted provision · exact public law section
     (D) by striking “under paragraph (1)” in clause (i) of subsection (c)(4)(A) and inserting “under paragraph (1) or for granting an extension under section 433(d)”,

     Effective date note
     Amendment by Pub. L. 113–97 applicable to years beginning after Dec. 31, 2013, see section 3 of Pub. L. 113–97, set out as a note under section 401 of this title.

113. 2014

     Cooperative and Small Employer Charity Pension Flexibility Act

     Pub. L. 113–97 § 202(c)(2)(E) · 128 Stat. 1101

     Substituted · 26 U.S.C. § 412(c)(4)(B)

     Pub. L. 113–97, § 202(c)(2)(E), substituted “waiver under this subsection or an extension under 433(d)” for “waiver under this subsection” in introductory provisions

     Source evidence

     Code amendment note
     Subsec. (c)(4)(B). Pub. L. 113–97, § 202(c)(2)(E), substituted “waiver under this subsection or an extension under 433(d)” for “waiver under this subsection” in introductory provisions.

     Enacted provision · exact public law section
     (E) by striking “waiver under this subsection” in subparagraph (B) of subsection (c)(4) and inserting “waiver under this subsection or an extension under 433(d)”,

     Effective date note
     Amendment by Pub. L. 113–97 applicable to years beginning after Dec. 31, 2013, see section 3 of Pub. L. 113–97, set out as a note under section 401 of this title.

114. 2014

     Cooperative and Small Employer Charity Pension Flexibility Act

     Pub. L. 113–97 § 202(c)(2)(F) · 128 Stat. 1101

     Substituted · 26 U.S.C. § 412(c)(4)(B)(i)(I)

     Pub. L. 113–97, § 202(c)(2)(F), substituted “waiver, modification, or extension” for “waiver or modification”

     Source evidence

     Code amendment note
     Subsec. (c)(4)(B)(i)(I). Pub. L. 113–97, § 202(c)(2)(F), substituted “waiver, modification, or extension” for “waiver or modification”.

     Enacted provision · exact public law section
     (F) by striking “waiver or modification” in subclause (I) of subsection (c)(4)(B)(i) and inserting “waiver, modification, or extension”,

     Effective date note
     Amendment by Pub. L. 113–97 applicable to years beginning after Dec. 31, 2013, see section 3 of Pub. L. 113–97, set out as a note under section 401 of this title.

115. 2014

     Cooperative and Small Employer Charity Pension Flexibility Act

     Pub. L. 113–97 § 202(c)(2)(G) · 128 Stat. 1101

     Substituted · 26 U.S.C. § 412(c)(4)(C)

     Pub. L. 113–97, § 202(c)(2)(G), substituted “waivers or extensions” for “waivers” in heading

     Source evidence

     Code amendment note
     Subsec. (c)(4)(C). Pub. L. 113–97, § 202(c)(2)(G), substituted “waivers or extensions” for “waivers” in heading.

     Enacted provision · exact public law section
     (G) by striking “waivers” in the heading of subsection (c)(4)(C) and of clause (ii) of subsection (c)(4)(C) and inserting “waivers or extensions”,

     Effective date note
     Amendment by Pub. L. 113–97 applicable to years beginning after Dec. 31, 2013, see section 3 of Pub. L. 113–97, set out as a note under section 401 of this title.

116. 2014

     Cooperative and Small Employer Charity Pension Flexibility Act

     Pub. L. 113–97 § 202(c)(2)(I) · 128 Stat. 1101

     Substituted · 26 U.S.C. § 412(c)(4)(C)(i)(I)

     Pub. L. 113–97, § 202(c)(2)(I), substituted “or the accumulated funding deficiency under section 433, whichever is applicable,” for “and” at end

     Source evidence

     Code amendment note
     Subsec. (c)(4)(C)(i)(I). Pub. L. 113–97, § 202(c)(2)(I), substituted “or the accumulated funding deficiency under section 433, whichever is applicable,” for “and” at end.

     Enacted provision · exact public law section
     (I) by striking “and” at the end of subclause (I) of subsection (c)(4)(C)(i) and inserting “or the accumulated funding deficiency under section 433, whichever is applicable,”,

     Effective date note
     Amendment by Pub. L. 113–97 applicable to years beginning after Dec. 31, 2013, see section 3 of Pub. L. 113–97, set out as a note under section 401 of this title.

117. 2014

     Cooperative and Small Employer Charity Pension Flexibility Act

     Pub. L. 113–97 § 202(c)(2)(J) · 128 Stat. 1101

     Substituted · 26 U.S.C. § 412(c)(4)(C)(i)(II)

     Pub. L. 113–97, § 202(c)(2)(J), substituted “430(e)(2) or 433(b)(2)(C), whichever is applicable, and” for “430(e)(2),”

     Source evidence

     Code amendment note
     Subsec. (c)(4)(C)(i)(II). Pub. L. 113–97, § 202(c)(2)(J), substituted “430(e)(2) or 433(b)(2)(C), whichever is applicable, and” for “430(e)(2),”.

     Enacted provision · exact public law section
     (J) by striking “430(e)(2),” in subclause (II) of subsection (c)(4)(C)(i) and inserting “430(e)(2) or 433(b)(2)(C), whichever is applicable, and”,

     Effective date note
     Amendment by Pub. L. 113–97 applicable to years beginning after Dec. 31, 2013, see section 3 of Pub. L. 113–97, set out as a note under section 401 of this title.

118. 2014

     Cooperative and Small Employer Charity Pension Flexibility Act

     Pub. L. 113–97 § 202(c)(2)(K) · 128 Stat. 1101

     Added · 26 U.S.C. § 412(c)(4)(C)(i)(III)

     Pub. L. 113–97, § 202(c)(2)(K), added subcl. (III)

     Source evidence

     Code amendment note
     Subsec. (c)(4)(C)(i)(III). Pub. L. 113–97, § 202(c)(2)(K), added subcl. (III).

     Enacted provision · exact public law section
     (K) by adding immediately after subclause (II) of subsection (c)(4)(C)(i) the following new subclause: “(III) the total amounts not paid by reason of an extension in effect under section 433(d),” , and

     Effective date note
     Amendment by Pub. L. 113–97 applicable to years beginning after Dec. 31, 2013, see section 3 of Pub. L. 113–97, set out as a note under section 401 of this title.

119. 2014

     Cooperative and Small Employer Charity Pension Flexibility Act

     Pub. L. 113–97 § 202(c)(2)(L) · 128 Stat. 1101

     Substituted · 26 U.S.C. § 412(c)(4)(C)(ii)

     Pub. L. 113–97, § 202(c)(2)(L), substituted “for waivers or extensions with respect to” for “for waivers of”

     Source evidence

     Code amendment note
     Subsec. (c)(4)(C)(ii). Pub. L. 113–97, § 202(c)(2)(L), substituted “for waivers or extensions with respect to” for “for waivers of”.

     Enacted provision · exact public law section
     (L) by striking “for waivers of” in clause (ii) of subsection (c)(4)(C) and inserting “for waivers or extensions with respect to”.

     Effective date note
     Amendment by Pub. L. 113–97 applicable to years beginning after Dec. 31, 2013, see section 3 of Pub. L. 113–97, set out as a note under section 401 of this title.

120. 2014

     Cooperative and Small Employer Charity Pension Flexibility Act

     Pub. L. 113–97 § 202(c)(2)(G) · 128 Stat. 1101

     Substituted · 26 U.S.C. § 412(c)(4)(C)(ii)

     Pub. L. 113–97, § 202(c)(2)(G), substituted “waivers or extensions” for “waivers” in heading

     Target inherited from the preceding amendment note.

     Source evidence

     Code amendment note
     Pub. L. 113–97, § 202(c)(2)(G), substituted “waivers or extensions” for “waivers” in heading.

     Enacted provision · exact public law section
     (G) by striking “waivers” in the heading of subsection (c)(4)(C) and of clause (ii) of subsection (c)(4)(C) and inserting “waivers or extensions”,

     Effective date note
     Amendment by Pub. L. 113–97 applicable to years beginning after Dec. 31, 2013, see section 3 of Pub. L. 113–97, set out as a note under section 401 of this title.

121. 2014

     Cooperative and Small Employer Charity Pension Flexibility Act

     Pub. L. 113–97 § 202(c)(2)(H) · 128 Stat. 1101

     Substituted · 26 U.S.C. § 412(c)(7)(A)

     Pub. L. 113–97, § 202(c)(2)(H), substituted “section 431(d) or section 433(d)” for “section 431(d)”

     Source evidence

     Code amendment note
     Subsec. (c)(7)(A). Pub. L. 113–97, § 202(c)(2)(H), substituted “section 431(d) or section 433(d)” for “section 431(d)”.

     Enacted provision · exact public law section
     (H) by striking “section 431(d)” in subparagraph (A) of subsection (c)(7) and in paragraph (2) of subsection (d) and inserting “section 431(d) or section 433(d)”,

     Effective date note
     Amendment by Pub. L. 113–97 applicable to years beginning after Dec. 31, 2013, see section 3 of Pub. L. 113–97, set out as a note under section 401 of this title.

122. 2014

     Cooperative and Small Employer Charity Pension Flexibility Act

     Pub. L. 113–97 § 202(c)(2)(H) · 128 Stat. 1101

     Substituted · 26 U.S.C. § 412(d)(2)

     Pub. L. 113–97, § 202(c)(2)(H), substituted “section 431(d) or section 433(d)” for “section 431(d)” in concluding provisions

     Source evidence

     Code amendment note
     Subsec. (d)(2). Pub. L. 113–97, § 202(c)(2)(H), substituted “section 431(d) or section 433(d)” for “section 431(d)” in concluding provisions.

     Enacted provision · exact public law section
     (H) by striking “section 431(d)” in subparagraph (A) of subsection (c)(7) and in paragraph (2) of subsection (d) and inserting “section 431(d) or section 433(d)”,

     Effective date note
     Amendment by Pub. L. 113–97 applicable to years beginning after Dec. 31, 2013, see section 3 of Pub. L. 113–97, set out as a note under section 401 of this title.

123. 2014

     Cooperative and Small Employer Charity Pension Flexibility Act

     Pub. L. 113–97 § 202(c)(2)(A) · 128 Stat. 1101

     Substituted · 26 U.S.C. § 412(d)(2)

     Pub. L. 113–97, § 202(c)(2)(A), substituted “multiemployer plan or a CSEC plan, any extension” for “multiemployer plan, any extension” in concluding provisions

     Target inherited from the preceding amendment note.

     Source evidence

     Code amendment note
     Pub. L. 113–97, § 202(c)(2)(A), substituted “multiemployer plan or a CSEC plan, any extension” for “multiemployer plan, any extension” in concluding provisions.

     Enacted provision · exact public law section
     (A) by striking “multiemployer plan” in paragraph (A) of subsection (a)(2), in clause (i) of subsection (c)(1)(B), the first place it appears in clause (i) of subsection (c)(1)(A), and the last place it appears in paragraph (2) of subsection (d), and inserting “multiemployer plan or a CSEC plan”,

     Effective date note
     Amendment by Pub. L. 113–97 applicable to years beginning after Dec. 31, 2013, see section 3 of Pub. L. 113–97, set out as a note under section 401 of this title.

124. 2018

     Energy and Water Development and Related Agencies Appropriations Act, 2018

     Pub. L. 115–141 § 401(a)(83) · 132 Stat. 348

     Inserted · 26 U.S.C. § 412(c)(1)(A)

     Pub. L. 115–141, § 401(a)(83), inserted period at end of concluding provisions

     Source evidence

     Code amendment note
     Subsec. (c)(1)(A). Pub. L. 115–141, § 401(a)(83), inserted period at end of concluding provisions.

     Enacted provision · exact public law section
     Sec. 401. The Nuclear Regulatory Commission shall comply with the July 5, 2011, version of Chapter VI of its Internal Commission Procedures when responding to Congressional requests for information.

125. 2018

     Energy and Water Development and Related Agencies Appropriations Act, 2018

     Pub. L. 115–141 § 401(a)(84) · 132 Stat. 348

     Inserted · 26 U.S.C. § 412(c)(4)(B)

     Pub. L. 115–141, § 401(a)(84), inserted “section” before “433(d)” in introductory provisions

     Source evidence

     Code amendment note
     Subsec. (c)(4)(B). Pub. L. 115–141, § 401(a)(84), inserted “section” before “433(d)” in introductory provisions.

     Enacted provision · exact public law section
     Sec. 401. The Nuclear Regulatory Commission shall comply with the July 5, 2011, version of Chapter VI of its Internal Commission Procedures when responding to Congressional requests for information.

126. 2018

     Energy and Water Development and Related Agencies Appropriations Act, 2018

     Pub. L. 115–141 § 401(a)(85) · 132 Stat. 348

     Struck · 26 U.S.C. § 412(c)(7)(B)(iii)

     Pub. L. 115–141, § 401(a)(85), struck out comma after “subchapter D”

     Source evidence

     Code amendment note
     Subsec. (c)(7)(B)(iii). Pub. L. 115–141, § 401(a)(85), struck out comma after “subchapter D”.

     Enacted provision · exact public law section
     Sec. 401. The Nuclear Regulatory Commission shall comply with the July 5, 2011, version of Chapter VI of its Internal Commission Procedures when responding to Congressional requests for information.

155 of 155 references resolved to an enrolled provision