<num value="I">TITLE I—</num><heading>AMENDMENTS TO EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974 AND OTHER PROVISIONS</heading> <section id="d355206e242" identifier="/us/pl/113/97/tI/s101" role="instruction" style="-uslm-lc:I658143"><num class="fontsize12" value="101">SEC. 101. </num><heading>DEFINITION OF COOPERATIVE AND SMALL EMPLOYER CHARITY PENSION PLANS.</heading><content class="firstIndent0 fontsize10" id="xe90d0b53-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658120"> Section 210 of the Employee Retirement Income Security Act of 1974 (<ref href="/us/usc/t29/s1060">29 U.S.C. 1060</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following new subsection:<quotedContent><subsection class="firstIndent0 fontsize10" id="ye90d3264-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="f">“(f) </num><heading class="fontsize10"><inline class="smallCaps">Cooperative and Small Employer Charity Pension Plans</inline>.—</heading><paragraph class="fontsize10" id="ye90d3265-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="1">“(1) </num><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><chapeau>For purposes of this title, except as provided in this subsection, a CSEC plan is an employee pension benefit plan (other than a multiemployer plan) that is a defined benefit plan—</chapeau><subparagraph class="fontsize10" id="ye90d3266-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><sidenote>Applicability.</sidenote><chapeau>to which section 104 of the Pension Protection Act of 2006 applies, without regard to—</chapeau><clause class="fontsize10" id="ye90d3268-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><content>section 104(a)(2) of such Act;</content></clause> <clause class="fontsize10" id="ye90d3269-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>the amendments to such section 104 by section 202(b) of the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010; and</content></clause> <clause class="fontsize10" id="ye90d326a-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="iii">“(iii) </num><content>paragraph (3)(B); or</content></clause> </subparagraph> <subparagraph class="fontsize10" id="ye90d326b-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><content>that, as of June 25, 2010, was maintained by more than one employer and all of the employers were organizations described in section 501(c)(3) of the Internal Revenue Code of 1986.</content></subparagraph> </paragraph> <paragraph class="fontsize10" id="ye90d326c-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="2">“(2) </num><heading class="fontsize10"><inline class="smallCaps">Aggregation</inline>.—</heading><content>All employers that are treated as a single employer under subsection (b) or (c) of section 414 of the Internal Revenue Code of 1986 shall be treated as a single employer for purposes of determining if a plan was maintained by more than one employer under paragraph (1)(B).”</content></paragraph> </subsection> </quotedContent>.</content></section> <section id="d355206e315" identifier="/us/pl/113/97/tI/s102" style="-uslm-lc:I658143"><num class="fontsize12" value="102">SEC. 102. </num><heading>FUNDING RULES APPLICABLE TO COOPERATIVE AND SMALL EMPLOYER CHARITY PENSION PLANS.</heading><subsection class="firstIndent0 fontsize10" id="ye9103fad-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/a" role="instruction" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="a">(a) </num><heading class="fontsize10"><inline class="smallCaps">In General</inline>.—</heading><content>Part 3 of title I of the Employee Retirement Income Security Act of 1974 (<ref href="/us/usc/t29/s1081/etseq">29 U.S.C. 1081 et seq.</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following new section:<quotedContent><section class="centered fontsize12" id="ye9145e5e-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658143"><num class="fontsize12" value="306">“SEC. 306. </num><sidenote><ref href="/us/usc/t29/s1085a">29 USC 1085a</ref>.</sidenote><heading class="fontsize12">MINIMUM FUNDING STANDARDS.</heading><subsection class="firstIndent0 fontsize10" id="ye9145e60-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="a">“(a) </num><heading class="fontsize10"><inline class="smallCaps">General</inline><sidenote>Definition.</sidenote> Rule.—</heading><content>For purposes of section 302, the term ‘<term>accumulated funding deficiency</term>’ for a CSEC plan means the excess of the total charges to the funding standard account for all plan years (beginning with the first plan year to which section 302 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.</content></subsection> <subsection class="firstIndent0 fontsize10" id="ye9145e62-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="b">“(b) </num><heading class="fontsize10"><inline class="smallCaps">Funding Standard Account</inline>.—</heading><paragraph class="fontsize10" id="ye9145e63-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="1">“(1) </num><heading class="fontsize10"><inline class="smallCaps">Account required</inline>.—</heading><content>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.</content></paragraph> <paragraph class="fontsize10" id="ye9145e64-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="2">“(2) </num><heading class="fontsize10"><inline class="smallCaps">Charges to account</inline>.—</heading><chapeau>For a plan year, the funding standard account shall be charged with the sum of—</chapeau><subparagraph class="fontsize10" id="ye9145e65-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><content>the normal cost of the plan for the plan year,<page identifier="/us/stat/128/1103">128 STAT. 1103</page></content></subparagraph> <subparagraph class="fontsize10" id="ye9145e66-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><chapeau>the amounts necessary to amortize in equal annual installments (until fully amortized)—</chapeau><clause class="fontsize10" id="ye9145e67-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><content>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 section 302 applies, over a period of 40 plan years,</content></clause> <clause class="fontsize10" id="ye9145e68-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>in the case of a plan which comes into existence after January 1, 1974, but before the first day of the first plan year beginning after December 31, 2013, the unfunded past service liability under the plan on the first day of the first plan year to which section 302 applies, over a period of 30 plan years,</content></clause> <clause class="fontsize10" id="ye9145e69-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="iii">“(iii) </num><content>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 15 plan years,</content></clause> <clause class="fontsize10" id="ye9145e6a-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="iv">“(iv) </num><content>separately, with respect to each plan year, the net experience loss (if any) under the plan, over a period of 5 plan years, and</content></clause> <clause class="fontsize10" id="ye9145e6b-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="v">“(v) </num><content>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 10 plan years,</content></clause> </subparagraph> <subparagraph class="fontsize10" id="ye9145e6c-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="C">“(C) </num><content>the amount necessary to amortize each waived funding deficiency (within the meaning of section 302(c)(3)) for each prior plan year in equal annual installments (until fully amortized) over a period of 5 plan years,</content></subparagraph> <subparagraph class="fontsize10" id="ye9145e6d-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="D">“(D) </num><content>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), and</content></subparagraph> <subparagraph class="fontsize10" id="ye9145e6e-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="E">“(E) </num><content>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 section 302(c)(7)(A)(i)(I) (as in effect on the day before the enactment of the Pension Protection Act of 2006).</content></subparagraph> </paragraph> <paragraph class="fontsize10" id="ye9145e6f-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="3">“(3) </num><heading class="fontsize10"><inline class="smallCaps">Credits to account</inline>.—</heading><chapeau>For a plan year, the funding standard account shall be credited with the sum of—</chapeau><subparagraph class="fontsize10" id="ye9145e70-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><content>the amount considered contributed by the employer to or under the plan for the plan year,</content></subparagraph> <subparagraph class="fontsize10" id="ye9145e71-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><chapeau>the amount necessary to amortize in equal annual installments (until fully amortized)—</chapeau><clause class="fontsize10" id="ye9145e72-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><content>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 15 plan years,</content></clause> <clause class="fontsize10" id="ye9145e73-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>separately, with respect to each plan year, the net experience gain (if any) under the plan, over a period of 5 plan years, and</content></clause> <clause class="fontsize10" id="ye9145e74-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="iii">“(iii) </num><content>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 10 plan years,</content></clause> </subparagraph> <subparagraph class="fontsize10" id="ye9145e75-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="C">“(C) </num><content>the amount of the waived funding deficiency (within the meaning of section 302(c)(3)) for the plan year, and<page identifier="/us/stat/128/1104">128 STAT. 1104</page></content></subparagraph> <subparagraph class="fontsize10" id="ye9145e76-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="D">“(D) </num><content>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.</content></subparagraph> </paragraph> <paragraph class="fontsize10" id="ye9145e77-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="4">“(4) </num><heading class="fontsize10"><inline class="smallCaps">Combining and offsetting amounts to be amortized</inline>.—</heading><chapeau>Under<sidenote>Regulations.</sidenote> regulations prescribed by the Secretary of the Treasury, amounts required to be amortized under paragraph (2) or paragraph (3), as the case may be—</chapeau><subparagraph class="fontsize10" id="ye9145e79-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><content>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</content></subparagraph> <subparagraph class="fontsize10" id="ye9145e7a-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><content>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.</content></subparagraph> </paragraph> <paragraph class="fontsize10" id="ye9145e7b-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="5">“(5) </num><heading class="fontsize10"><inline class="smallCaps">Interest</inline>.—</heading><subparagraph class="fontsize10" id="ye9145e7c-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided in subparagraph (B), the funding standard account (and items therein) shall be charged or credited (as determined under regulations prescribed by the Secretary of the Treasury) with interest at the appropriate rate consistent with the rate or rates of interest used under the plan to determine costs.</content></subparagraph> <subparagraph class="fontsize10" id="ye9145e7d-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><heading class="fontsize10"><inline class="smallCaps">Exception</inline>.—</heading><chapeau>The interest rate used for purposes of computing the amortization charge described in subsection (b)(2)(C) or for purposes of any arrangement under subsection (d) for any plan year shall be the greater of—</chapeau><clause class="fontsize10" id="ye9145e7e-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><content>150 percent of the Federal mid-term rate (as in effect under section 1274 of the Internal Revenue Code of 1986 for the 1st month of such plan year), or</content></clause> <clause class="fontsize10" id="ye9145e7f-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>the rate of interest determined under subparagraph (A).</content></clause> </subparagraph> </paragraph> <paragraph class="fontsize10" id="ye9145e80-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="6">“(6) </num><heading class="fontsize10"><inline class="smallCaps">Amortization schedules in effect</inline>.—</heading><content>Amortization schedules for amounts described in paragraphs (2) and (3) that are in effect as of the last day of the last plan year beginning before January 1, 2014, by reason of section 104 of the Pension Protection Act of 2006 shall remain in effect pursuant to their terms and this section, except that such amounts shall not be amortized again under this section.</content></paragraph> </subsection> <subsection class="firstIndent0 fontsize10" id="ye9145e81-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="c">“(c) </num><heading class="fontsize10"><inline class="smallCaps">Special Rules</inline>.—</heading><paragraph class="fontsize10" id="ye9145e82-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="1">“(1) </num><heading class="fontsize10"><inline class="smallCaps">Determinations to be made under funding method</inline>.—</heading><content>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.</content></paragraph> <paragraph class="fontsize10" id="ye9145e83-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="2">“(2) </num><heading class="fontsize10"><inline class="smallCaps">Valuation of assets</inline>.—</heading><subparagraph class="fontsize10" id="ye9145e84-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><sidenote>Regulations.</sidenote><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><content>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 <page identifier="/us/stat/128/1105">128 STAT. 1105</page> takes into account fair market value and which is permitted under regulations prescribed by the Secretary of the Treasury.</content></subparagraph> <subparagraph class="fontsize10" id="ye9145e86-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><heading class="fontsize10"><inline class="smallCaps">Dedicated bond portfolio</inline>.—</heading><content>The Secretary of the Treasury may by regulations provide that the value of any dedicated bond portfolio of a plan shall be determined by using the interest rate under section 302(b)(5) (as in effect on the day before the enactment of the Pension Protection Act of 2006).</content></subparagraph> </paragraph> <paragraph class="fontsize10" id="ye9145e87-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="3">“(3) </num><sidenote>Determination.</sidenote><heading class="fontsize10"><inline class="smallCaps">Actuarial assumptions must be reasonable</inline>.—</heading><chapeau>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—</chapeau><subparagraph class="fontsize10" id="ye9145e89-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><content>each of which is reasonable (taking into account the experience of the plan and reasonable expectations), and</content></subparagraph> <subparagraph class="fontsize10" id="ye9145e8a-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><content>which, in combination, offer the actuary’s best estimate of anticipated experience under the plan.</content></subparagraph> </paragraph> <paragraph class="fontsize10" id="ye9145e8b-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="4">“(4) </num><heading class="fontsize10"><inline class="smallCaps">Treatment of certain changes as experience gain or loss</inline>.—</heading><chapeau>For purposes of this section, if—</chapeau><subparagraph class="fontsize10" id="ye9145e8c-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><content>a change in benefits under the Social Security Act or in other retirement benefits created under Federal or State law, or</content></subparagraph> <subparagraph class="fontsize10" id="ye9145e8d-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><content>a change in the definition of the term ‘<term>wages</term>’ under section 3121 of the Internal Revenue Code of 1986 or a change in the amount of such wages taken into account under regulations prescribed for purposes of section 401(a)(5) of such Code,</content></subparagraph> <continuation class="firstIndent1 fontsize10" id="xe9145e8e-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122">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.</continuation></paragraph> <paragraph class="fontsize10" id="ye9145e8f-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="5">“(5) </num><heading class="fontsize10"><inline class="smallCaps">Funding method and plan year</inline>.—</heading><subparagraph class="fontsize10" id="ye9145e90-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><heading class="fontsize10"><inline class="smallCaps">Funding methods available</inline>.—</heading><content>All funding methods available to CSEC plans under section 302 (as in effect on the day before the enactment of the Pension Protection Act of 2006) shall continue to be available under this section.</content></subparagraph> <subparagraph class="fontsize10" id="ye9145e91-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><heading class="fontsize10"><inline class="smallCaps">Changes</inline>.—</heading><content>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 of the Treasury. 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 of the Treasury.</content></subparagraph> <subparagraph class="fontsize10" id="ye9145e92-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="C">“(C) </num><heading class="fontsize10"><inline class="smallCaps">Approval required for certain changes in assumptions by certain single-employer plans subject to additional funding requirement</inline>.—</heading><clause class="fontsize10" id="ye9145e93-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><content>No actuarial assumption (other than the assumptions described in subsection (h)(3)) used to determine the current liability for a plan to which this subparagraph applies may be changed without the approval of the Secretary of the Treasury.</content></clause> <clause class="fontsize10" id="ye9145e94-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><heading class="fontsize10"><inline class="smallCaps">Plans to which subparagraph applies</inline>.—</heading><chapeau>This subparagraph shall apply to a plan only if—</chapeau><subclause class="fontsize10" id="ye9145e95-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658128"><num class="fontsize10" style="-uslm-lc:emspace2" value="I">“(I) </num><content>the plan is a CSEC plan,<page identifier="/us/stat/128/1106">128 STAT. 1106</page></content></subclause> <subclause class="fontsize10" id="ye9145e96-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658128"><num class="fontsize10" style="-uslm-lc:emspace2" value="II">“(II) </num><content>the aggregate unfunded vested benefits as of the close of the preceding plan year (as determined under section 4006(a)(3)(E)(iii)) of such plan and all other plans maintained by the contributing sponsors (as defined in section 4001(a)(13)) and members of such sponsors’ controlled groups (as defined in section 4001(a)(14)) which are covered by title IV (disregarding plans with no unfunded vested benefits) exceed $50,000,000, and</content></subclause> <subclause class="fontsize10" id="ye9145e97-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658128"><num class="fontsize10" style="-uslm-lc:emspace2" value="III">“(III) </num><content>the change in assumptions (determined after taking into account any changes in interest rate and mortality table) results in a decrease in the funding shortfall 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.</content></subclause> </clause> </subparagraph> </paragraph> <paragraph class="fontsize10" id="ye9145e98-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="6">“(6) </num><heading class="fontsize10"><inline class="smallCaps">Full funding</inline>.—</heading><chapeau>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 (e)) in excess of the full funding limitation—</chapeau><subparagraph class="fontsize10" id="ye9145e99-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><content>the funding standard account shall be credited with the amount of such excess, and</content></subparagraph> <subparagraph class="fontsize10" id="ye9145e9a-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><content>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.</content></subparagraph> </paragraph> <paragraph class="fontsize10" id="ye9145e9b-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="7">“(7) </num><heading class="fontsize10"><inline class="smallCaps">Full-funding limitation</inline>.—</heading><chapeau>For purposes of paragraph (6), the term ‘<term>full-funding limitation</term>’ means the excess (if any) of—</chapeau><subparagraph class="fontsize10" id="ye9145e9c-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><content>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</content></subparagraph> <subparagraph class="fontsize10" id="ye9145e9d-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><chapeau>the lesser of—</chapeau><clause class="fontsize10" id="ye9145e9e-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><content>the fair market value of the plan’s assets, or</content></clause> <clause class="fontsize10" id="ye9145e9f-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>the value of such assets determined under paragraph (2).</content></clause> </subparagraph> <subparagraph class="fontsize10" id="ye9145ea0-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="C">“(C) </num><heading class="fontsize10"><inline class="smallCaps">Minimum amount</inline>.—</heading><clause class="fontsize10" id="ye9145ea1-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><chapeau>In no event shall the full-funding limitation determined under subparagraph (A) be less than the excess (if any) of—</chapeau><subclause class="fontsize10" id="ye9145ea2-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658128"><num class="fontsize10" style="-uslm-lc:emspace2" value="I">“(I) </num><content>90 percent of the current liability (determined without regard to paragraph (4) of subsection (h)) of the plan (including the expected increase in such current liability due to benefits accruing during the plan year), over</content></subclause> <subclause class="fontsize10" id="ye91485b3-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658128"><num class="fontsize10" style="-uslm-lc:emspace2" value="II">“(II) </num><content>the value of the plan’s assets determined under paragraph (2).</content></subclause> </clause> <clause class="fontsize10" id="ye91485b4-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><heading class="fontsize10"><inline class="smallCaps">Assets</inline>.—</heading><content>For purposes of clause (i), assets shall not be reduced by any credit balance in the funding standard account.</content></clause> </subparagraph> </paragraph> <paragraph class="fontsize10" id="ye91485b5-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="8">“(8) </num><heading class="fontsize10"><inline class="smallCaps">Annual valuation</inline>.—</heading><subparagraph class="fontsize10" id="ye91485b6-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><sidenote>Regulations.</sidenote><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><content>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 <page identifier="/us/stat/128/1107">128 STAT. 1107</page> 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 of the Treasury.</content></subparagraph> <subparagraph class="fontsize10" id="ye91485b8-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><heading class="fontsize10"><inline class="smallCaps">Valuation date</inline>.—</heading><clause class="fontsize10" id="ye91485b9-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><heading class="fontsize10"><inline class="smallCaps">Current year</inline>.—</heading><content>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.</content></clause> <clause class="fontsize10" id="ye91485ba-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><heading class="fontsize10"><inline class="smallCaps">Use of prior year valuation</inline>.—</heading><content>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 100 percent of the plan’s current liability.</content></clause> <clause class="fontsize10" id="ye91485bb-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="iii">“(iii) </num><heading class="fontsize10"><inline class="smallCaps">Adjustments</inline>.—</heading><content>Information under clause (ii) shall, in accordance with regulations, be actuarially adjusted to reflect significant differences in participants.</content></clause> <clause class="fontsize10" id="ye91485bc-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="iv">“(iv) </num><heading class="fontsize10"><inline class="smallCaps">Limitation</inline>.—</heading><content>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.</content></clause> </subparagraph> </paragraph> <paragraph class="fontsize10" id="ye91485bd-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="9">“(9) </num><heading class="fontsize10"><inline class="smallCaps">Time when certain contributions deemed made</inline>.—</heading><chapeau>For purposes of this section, any contributions for a plan year made by an employer during the period—</chapeau><subparagraph class="fontsize10" id="ye91485be-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><content>beginning on the day after the last day of such plan year, and</content></subparagraph> <subparagraph class="fontsize10" id="ye91485bf-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><content>ending on the day which is 8½ months after the close of the plan year,</content></subparagraph> <continuation class="firstIndent1 fontsize10" id="xe91485c0-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122">shall be deemed to have been made on such last day.</continuation></paragraph> <paragraph class="fontsize10" id="ye91485c1-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="10">“(10) </num><heading class="fontsize10"><inline class="smallCaps">Anticipation of benefit increases effective in the future</inline>.—</heading><content>In determining projected benefits, the funding method of a collectively bargained CSEC plan described in section 413(a) of the Internal Revenue Code of 1986 shall anticipate benefit increases scheduled to take effect during the term of the collective bargaining agreement applicable to the plan.</content></paragraph> </subsection> <subsection class="firstIndent0 fontsize10" id="ye91485c2-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="d">“(d) </num><heading class="fontsize10"><inline class="smallCaps">Extension of Amortization Periods</inline>.—</heading><chapeau>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 the Treasury for a period of time (not in excess of 10 years) if such Secretary determines that such extension would carry out the purposes of this Act and provide adequate protection for participants under the plan and their beneficiaries, and if such Secretary determines that the failure to permit such extension would result in—</chapeau><paragraph class="fontsize10" id="ye91485c3-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="1">“(1) </num><content>a substantial risk to the voluntary continuation of the plan, or</content></paragraph> <paragraph class="fontsize10" id="ye91485c4-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="2">“(2) </num><content>a substantial curtailment of pension benefit levels or employee compensation.</content></paragraph> </subsection> <subsection class="firstIndent0 fontsize10" id="ye91485c5-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="e">“(e) </num><heading class="fontsize10"><inline class="smallCaps">Alternative Minimum Funding Standard</inline>.—</heading><paragraph class="fontsize10" id="ye91485c6-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="1">“(1) </num><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><content>A CSEC plan which uses a funding method that requires contributions in all years not less than <page identifier="/us/stat/128/1108">128 STAT. 1108</page> 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.</content></paragraph> <paragraph class="fontsize10" id="ye91485c7-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="2">“(2) </num><heading class="fontsize10"><inline class="smallCaps">Charges and credits to account</inline>.—</heading><chapeau>For a plan year the alternative minimum funding standard account shall be—</chapeau><subparagraph class="fontsize10" id="ye91485c8-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><chapeau>charged with the sum of—</chapeau><clause class="fontsize10" id="ye91485c9-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><content>the lesser of normal cost under the funding method used under the plan or normal cost determined under the unit credit method,</content></clause> <clause class="fontsize10" id="ye91485ca-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>the excess, if any, of the present value of accrued benefits under the plan over the fair market value of the assets, and</content></clause> <clause class="fontsize10" id="ye91485cb-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="iii">“(iii) </num><content>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</content></clause> </subparagraph> <subparagraph class="fontsize10" id="ye91485cc-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><content>credited with the amount considered contributed by the employer to or under the plan for the plan year.</content></subparagraph> </paragraph> <paragraph class="fontsize10" id="ye91485cd-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="3">“(3) </num><heading class="fontsize10"><inline class="smallCaps">Interest</inline>.—</heading><content>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.</content></paragraph> </subsection> <subsection class="firstIndent0 fontsize10" id="ye91485ce-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="f">“(f) </num><heading class="fontsize10"><inline class="smallCaps">Quarterly Contributions Required</inline>.—</heading><paragraph class="fontsize10" id="ye91485cf-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="1">“(1) </num><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><chapeau>If a CSEC plan which has a funded current liability percentage for the preceding plan year of less than 100 percent fails to pay the full amount of a required installment for the plan year, then the rate of interest charged to the funding standard account under subsection (b)(5) with respect to the amount of the underpayment for the period of the underpayment shall be equal to the greater of—</chapeau><subparagraph class="fontsize10" id="ye91485d0-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><content>175 percent of the Federal mid-term rate (as in effect under section 1274 of the Internal Revenue Code of 1986 for the 1st month of such plan year), or</content></subparagraph> <subparagraph class="fontsize10" id="ye91485d1-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><content>the rate of interest used under the plan in determining costs.</content></subparagraph> </paragraph> <paragraph class="fontsize10" id="ye91485d2-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="2">“(2) </num><heading class="fontsize10"><inline class="smallCaps">Amount of underpayment, period of underpayment</inline>.—</heading><chapeau>For purposes of paragraph (1)—</chapeau><subparagraph class="fontsize10" id="ye91485d3-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><heading class="fontsize10"><inline class="smallCaps">Amount</inline>.—</heading><chapeau>The amount of the underpayment shall be the excess of—</chapeau><clause class="fontsize10" id="ye91485d4-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><content>the required installment, over</content></clause> <clause class="fontsize10" id="ye91485d5-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>the amount (if any) of the installment contributed to or under the plan on or before the due date for the installment.</content></clause> </subparagraph> <subparagraph class="fontsize10" id="ye91485d6-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><heading class="fontsize10"><inline class="smallCaps">Period of underpayment</inline>.—</heading><content>The period for which interest is charged under this subsection with regard to any portion of the underpayment shall run from the due date for the installment to the date on which such portion is contributed to or under the plan (determined without regard to subsection (c)(9)).</content></subparagraph> <subparagraph class="fontsize10" id="ye91485d7-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="C">“(C) </num><heading class="fontsize10"><inline class="smallCaps">Order of crediting contributions</inline>.—</heading><content>For purposes of subparagraph (A)(ii), contributions shall be credited against unpaid required installments in the order in which such installments are required to be paid.</content></subparagraph> </paragraph> <paragraph class="fontsize10" id="ye91485d8-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="3">“(3) </num><heading class="fontsize10"><inline class="smallCaps">Number of required installments; due dates</inline>.—</heading><chapeau>For purposes of this subsection—<page identifier="/us/stat/128/1109">128 STAT. 1109</page></chapeau><subparagraph class="fontsize10" id="ye91485d9-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><heading class="fontsize10"><inline class="smallCaps">Payable in 4 installments</inline>.—</heading><content>There shall be 4 required installments for each plan year.</content></subparagraph> <subparagraph class="fontsize10" id="ye91485da-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><heading class="fontsize10"><inline class="smallCaps">Time for payment of installments</inline>.—</heading><content><?GPOvSpace 04?> <xhtml:table xmlns:xhtml="http://www.w3.org/1999/xhtml" class="Quoted fullWidth" style="border-collapse:collapse; border=0; -uslm-lc: 'c2,L0,tp0,p10,10/12,s150,xl150R'; "><xhtml:colgroup><xhtml:col role="stub" style="min-width: 212pt;"/> <xhtml:col role="reading" style="min-width: 212pt;"/> </xhtml:colgroup><xhtml:thead><xhtml:tr class="header" style="font-size:10pt;-uslm-lc:h1"> <xhtml:th style="min-width: 212.0pt; text-align:left; vertical-align:middle;">“In the case of the following required installments:</xhtml:th><xhtml:th style="min-width: 212.0pt; text-align:right; vertical-align:middle;">The due date is:</xhtml:th></xhtml:tr> </xhtml:thead><xhtml:tbody style="line-height:12pt; font-size:10pt;"><xhtml:tr style="-uslm-lc:I01"><xhtml:td leaders="yes" stubHierarchy="1" style=" text-align:left; vertical-align:top;"><inline>1st</inline></xhtml:td><xhtml:td style=" text-align:right; vertical-align:top;">April 15 </xhtml:td></xhtml:tr> <xhtml:tr style="-uslm-lc:I01"><xhtml:td leaders="yes" stubHierarchy="1" style=" text-align:left; vertical-align:top;"><inline>2nd</inline></xhtml:td><xhtml:td style=" text-align:right; vertical-align:top;">July 15 </xhtml:td></xhtml:tr> <xhtml:tr style="-uslm-lc:I01"><xhtml:td leaders="yes" stubHierarchy="1" style=" text-align:left; vertical-align:top;"><inline>3rd</inline></xhtml:td><xhtml:td style=" text-align:right; vertical-align:top;">October 15 </xhtml:td></xhtml:tr> <xhtml:tr style="-uslm-lc:I01"><xhtml:td leaders="yes" stubHierarchy="1" style=" text-align:left; vertical-align:top;"><inline>4th</inline></xhtml:td><xhtml:td style=" text-align:right; vertical-align:top;">January 15 of the following year.</xhtml:td></xhtml:tr> </xhtml:tbody></xhtml:table><?GPOvSpace 04?></content></subparagraph> </paragraph> <paragraph class="fontsize10" id="ye91485db-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="4">“(4) </num><heading class="fontsize10"><inline class="smallCaps">Amount of required installment</inline>.—</heading><chapeau>For purposes of this subsection—</chapeau><subparagraph class="fontsize10" id="ye91485dc-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><content>The amount of any required installment shall be 25 percent of the required annual payment.</content></subparagraph> <subparagraph class="fontsize10" id="ye91485dd-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><heading class="fontsize10"><inline class="smallCaps">Required annual payment</inline>.—</heading><chapeau>For purposes of subparagraph (A), the term ‘<term>required annual payment</term>’ means the lesser of—</chapeau><clause class="fontsize10" id="ye91485de-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><content>90 percent of the amount required to be contributed to or under the plan by the employer for the plan year under section 302 (without regard to any waiver under subsection (c) thereof), or</content></clause> <clause class="fontsize10" id="ye91485df-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>100 percent of the amount so required for the preceding plan year.</content></clause> <continuation class="firstIndent1 fontsize10" id="xe91485e0-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124">Clause (ii) shall not apply if the preceding plan year was not a year of 12 months.</continuation></subparagraph> </paragraph> <paragraph class="fontsize10" id="ye91485e1-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="5">“(5) </num><heading class="fontsize10"><inline class="smallCaps">Liquidity requirement</inline>.—</heading><subparagraph class="fontsize10" id="ye91485e2-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><sidenote>Applicability.</sidenote><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><content>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).</content></subparagraph> <subparagraph class="fontsize10" id="ye91485e4-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><heading class="fontsize10"><inline class="smallCaps">Plans to which paragraph applies</inline>.—</heading><chapeau>This paragraph shall apply to a CSEC plan other than a plan described in section 302(d)(6)(A) (as in effect on the day before the enactment of the Pension Protection Act of 2006) which—</chapeau><clause class="fontsize10" id="ye91485e5-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><content>is required to pay installments under this subsection for a plan year, and</content></clause> <clause class="fontsize10" id="ye91485e6-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>has a liquidity shortfall for any quarter during such plan year.</content></clause> </subparagraph> <subparagraph class="fontsize10" id="ye91485e7-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="C">“(C) </num><heading class="fontsize10"><inline class="smallCaps">Period of underpayment</inline>.—</heading><content>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.</content></subparagraph> <subparagraph class="fontsize10" id="ye91485e8-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="D">“(D) </num><heading class="fontsize10"><inline class="smallCaps">Limitation on increase</inline>.—</heading><content>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 <page identifier="/us/stat/128/1110">128 STAT. 1110</page> increase in current liability due to benefits accruing during the plan year) to 100 percent.</content></subparagraph> <subparagraph class="fontsize10" id="ye91485e9-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="E">“(E) </num><heading class="fontsize10"><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>For purposes of this paragraph—</chapeau><clause class="fontsize10" id="ye91485ea-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><heading class="fontsize10"><inline class="smallCaps">Liquidity shortfall</inline>.—</heading><content>The term ‘<term>liquidity shortfall</term>’ 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.</content></clause> <clause class="fontsize10" id="ye91485eb-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><heading class="fontsize10"><inline class="smallCaps">Base amount</inline>.—</heading><subclause class="fontsize10" id="ye91485ec-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658128"><num class="fontsize10" style="-uslm-lc:emspace2" value="I">“(I) </num><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><content>The term ‘<term>base amount</term>’ means, with respect to any quarter, an amount equal to 3 times the sum of the adjusted disbursements from the plan for the 12 months ending on the last day of such quarter.</content></subclause> <subclause class="fontsize10" id="ye91485ed-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658128"><num class="fontsize10" style="-uslm-lc:emspace2" value="II">“(II) </num><sidenote>Certification.Determination.</sidenote><heading class="fontsize10"><inline class="smallCaps">Special rule</inline>.—</heading><content>If the amount determined under subclause (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 of the Treasury 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.</content></subclause> </clause> <clause class="fontsize10" id="ye91485f0-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="iii">“(iii) </num><heading class="fontsize10"><inline class="smallCaps">Disbursements from the plan</inline>.—</heading><content>The term ‘<term>disbursements from the plan</term>’ means all disbursements from the trust, including purchases of annuities, payments of single sums and other benefits, and administrative expenses.</content></clause> <clause class="fontsize10" id="ye91485f1-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="iv">“(iv) </num><heading class="fontsize10"><inline class="smallCaps">Adjusted disbursements</inline>.—</heading><chapeau>The term ‘<term>adjusted disbursements</term>’ means disbursements from the plan reduced by the product of—</chapeau><subclause class="fontsize10" id="ye91485f2-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658128"><num class="fontsize10" style="-uslm-lc:emspace2" value="I">“(I) </num><content>the plan’s funded current liability percentage for the plan year, and</content></subclause> <subclause class="fontsize10" id="ye91485f3-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658128"><num class="fontsize10" style="-uslm-lc:emspace2" value="II">“(II) </num><content>the sum of the purchases of annuities, payments of single sums, and such other disbursements as the Secretary of the Treasury shall provide in regulations.</content></subclause> </clause> <clause class="fontsize10" id="ye91485f4-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="v">“(v) </num><heading class="fontsize10"><inline class="smallCaps">Liquid assets</inline>.—</heading><content>The term ‘<term>liquid assets</term>’ means cash, marketable securities and such other assets as specified by the Secretary of the Treasury in regulations.</content></clause> <clause class="fontsize10" id="ye91485f5-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="vi">“(vi) </num><heading class="fontsize10"><inline class="smallCaps">Quarter</inline>.—</heading><content>The term ‘<term>quarter</term>’ means, with respect to any required installment, the 3-month period preceding the month in which the due date for such installment occurs.</content></clause> </subparagraph> <subparagraph class="fontsize10" id="ye91485f6-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="F">“(F) </num><heading class="fontsize10"><inline class="smallCaps">Regulations</inline>.—</heading><content>The Secretary of the Treasury may prescribe such regulations as are necessary to carry out this paragraph.</content></subparagraph> </paragraph> <paragraph class="fontsize10" id="ye91485f7-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="6">“(6) </num><sidenote>Applicability.</sidenote><heading class="fontsize10"><inline class="smallCaps">Fiscal years and short years</inline>.—</heading><subparagraph class="fontsize10" id="ye914ad09-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><heading class="fontsize10"><inline class="smallCaps">Fiscal years</inline>.—</heading><content>In applying this subsection to a plan year beginning on any date other than January 1, there shall be substituted for the months specified in this subsection, the months which correspond thereto.<page identifier="/us/stat/128/1111">128 STAT. 1111</page></content></subparagraph> <subparagraph class="fontsize10" id="ye914ad0a-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><sidenote>Regulations.</sidenote><heading class="fontsize10"><inline class="smallCaps">Short plan year</inline>.—</heading><content>This subsection shall be applied to plan years of less than 12 months in accordance with regulations prescribed by the Secretary of the Treasury.</content></subparagraph> </paragraph> </subsection> <subsection class="firstIndent0 fontsize10" id="ye914ad0c-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="g">“(g) </num><heading class="fontsize10"><inline class="smallCaps">Imposition of Lien Where Failure To Make Required Contributions</inline>.—</heading><paragraph class="fontsize10" id="ye914ad0d-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="1">“(1) </num><sidenote>Applicability.</sidenote><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><chapeau>In the case of a plan to which this section applies, if—</chapeau><subparagraph class="fontsize10" id="ye914ad0f-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><content>any person fails to make a required installment under subsection (f) or any other payment required under this section before the due date for such installment or other payment, and</content></subparagraph> <subparagraph class="fontsize10" id="ye914ad10-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><content>the unpaid balance of such installment or other payment (including interest), when added to the aggregate unpaid balance of all preceding such installments or other payments for which payment was not made before the due date (including interest), exceeds $1,000,000,</content></subparagraph> <continuation class="firstIndent1 fontsize10" id="xe914ad11-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122">then there shall be a lien in favor of the plan in the amount determined under paragraph (3) upon all property and rights to property, whether real or personal, belonging to such person and any other person who is a member of the same controlled group of which such person is a member.</continuation></paragraph> <paragraph class="fontsize10" id="ye914ad12-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="2">“(2) </num><heading class="fontsize10"><inline class="smallCaps">Plans to which subsection applies</inline>.—</heading><content>This subsection shall apply to a CSEC plan for any plan year for which the funded current liability percentage of such plan is less than 100 percent. This subsection shall not apply to any plan to which section 4021 does not apply (as such section is in effect on the date of the enactment of the Retirement Protection Act of 1994).</content></paragraph> <paragraph class="fontsize10" id="ye914ad13-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="3">“(3) </num><heading class="fontsize10"><inline class="smallCaps">Amount of lien</inline>.—</heading><chapeau>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)—</chapeau><subparagraph class="fontsize10" id="ye914ad14-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><content>for plan years beginning after 1987, and</content></subparagraph> <subparagraph class="fontsize10" id="ye914ad15-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><content>for which payment has not been made before the due date.</content></subparagraph> </paragraph> <paragraph class="fontsize10" id="ye914ad16-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="4">“(4) </num><heading class="fontsize10"><inline class="smallCaps">Notice of failure; lien</inline>.—</heading><subparagraph class="fontsize10" id="ye914ad17-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><heading class="fontsize10"><inline class="smallCaps">Notice of failure</inline>.—</heading><content>A person committing a failure described in paragraph (1) shall notify the Pension Benefit Guaranty Corporation of such failure within 10 days of the due date for the required installment or other payment.</content></subparagraph> <subparagraph class="fontsize10" id="ye914ad18-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><heading class="fontsize10"><inline class="smallCaps">Period of lien</inline>.—</heading><content>The lien imposed by paragraph (1) shall arise on the due date for the required installment or other payment and shall continue until the last day of the first plan year in which the plan ceases to be described in paragraph (1)(B). Such lien shall continue to run without regard to whether such plan continues to be described in paragraph (2) during the period referred to in the preceding sentence.</content></subparagraph> <subparagraph class="fontsize10" id="ye914ad19-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="C">“(C) </num><heading class="fontsize10"><inline class="smallCaps">Certain rules to apply</inline>.—</heading><content>Any amount with respect to which a lien is imposed under paragraph (1) shall be treated as taxes due and owing the United States and rules similar to the rules of subsections (c), (d), and (e) of section 4068 shall apply with respect to a lien imposed by subsection (a) and the amount with respect to such lien.<page identifier="/us/stat/128/1112">128 STAT. 1112</page></content></subparagraph> </paragraph> <paragraph class="fontsize10" id="ye914ad1a-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="5">“(5) </num><heading class="fontsize10"><inline class="smallCaps">Enforcement</inline>.—</heading><content>Any lien created under paragraph (1) may be perfected and enforced only by the Pension Benefit Guaranty Corporation, or at the direction of the Pension Benefit Guaranty Corporation, by any contributing employer (or any member of the controlled group of the contributing employer).</content></paragraph> <paragraph class="fontsize10" id="ye914ad1b-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="6">“(6) </num><heading class="fontsize10"><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>For purposes of this subsection—</chapeau><subparagraph class="fontsize10" id="ye914ad1c-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><heading class="fontsize10"><inline class="smallCaps">Due date; required installment</inline>.—</heading><content>The terms ‘due date’ and ‘required installment’ have the meanings given such terms by subsection (f), except that in the case of a payment other than a required installment, the due date shall be the date such payment is required to be made under this section.</content></subparagraph> <subparagraph class="fontsize10" id="ye914ad1d-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><heading class="fontsize10"><inline class="smallCaps">Controlled group</inline>.—</heading><content>The term ‘<term>controlled group</term>’ means any group treated as a single employer under subsections (b), (c), (m), and (o) of section 414 of the Internal Revenue Code of 1986.</content></subparagraph> </paragraph> </subsection> <subsection class="firstIndent0 fontsize10" id="ye914ad1e-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="h">“(h) </num><heading class="fontsize10"><inline class="smallCaps">Current Liability</inline>.—</heading><chapeau>For purposes of this section—</chapeau><paragraph class="fontsize10" id="ye914ad1f-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="1">“(1) </num><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><content>The term ‘<term>current liability</term>’ means all liabilities to employees and their beneficiaries under the plan.</content></paragraph> <paragraph class="fontsize10" id="ye914ad20-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="2">“(2) </num><heading class="fontsize10"><inline class="smallCaps">Treatment of unpredictable contingent event benefits</inline>.—</heading><subparagraph class="fontsize10" id="ye914ad21-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><content>For purposes of paragraph (1), any unpredictable contingent event benefit shall not be taken into account until the event on which the benefit is contingent occurs.</content></subparagraph> <subparagraph class="fontsize10" id="ye914ad22-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><heading class="fontsize10"><inline class="smallCaps">Unpredictable contingent event benefit</inline>.—</heading><chapeau>The term ‘<term>unpredictable contingent event benefit</term>’ means any benefit contingent on an event other than—</chapeau><clause class="fontsize10" id="ye914ad23-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><content>age, service, compensation, death, or disability, or</content></clause> <clause class="fontsize10" id="ye914ad24-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>an event which is reasonably and reliably predictable (as determined by the Secretary of the Treasury).</content></clause> </subparagraph> </paragraph> <paragraph class="fontsize10" id="ye914ad25-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="3">“(3) </num><heading class="fontsize10"><inline class="smallCaps">Interest rate and mortality assumptions used</inline>.—</heading><subparagraph class="fontsize10" id="ye914ad26-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><heading class="fontsize10"><inline class="smallCaps">Interest rate</inline>.—</heading><content>The rate of interest used to determine current liability under this section shall be the third segment rate determined under section 303(h)(2)(C).</content></subparagraph> <subparagraph class="fontsize10" id="ye914ad27-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><heading class="fontsize10"><inline class="smallCaps">Mortality tables</inline>.—</heading><clause class="fontsize10" id="ye914ad28-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><heading class="fontsize10"><inline class="smallCaps">Secretarial authority</inline>.—</heading><content>The Secretary of the Treasury may by regulation prescribe 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 of the Treasury shall take into account results of available independent studies of mortality of individuals covered by pension plans.</content></clause> <clause class="fontsize10" id="ye914ad29-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><sidenote>Regulations.</sidenote><heading class="fontsize10"><inline class="smallCaps">Periodic review</inline>.—</heading><content>The Secretary of the Treasury shall periodically (at least every 5 years) review any tables in effect under this subsection and shall, to the extent the Secretary of the Treasury determines necessary, by regulation update the tables to reflect the actual experience of pension plans and projected trends in such experience.</content></clause> </subparagraph> <subparagraph class="fontsize10" id="ye914ad2b-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="C">“(C) </num><heading class="fontsize10"><inline class="smallCaps">Separate mortality tables for the disabled</inline>.—</heading><chapeau>Notwithstanding subparagraph (B)—<page identifier="/us/stat/128/1113">128 STAT. 1113</page></chapeau><clause class="fontsize10" id="ye914ad2c-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><content>In the case of plan years beginning after December 31, 1995, the Secretary of the Treasury shall establish mortality tables which may be used (in lieu of the tables under subparagraph (B)) to determine current liability under this subsection for individuals who are entitled to benefits under the plan on account of disability. The Secretary of the Treasury 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.</content></clause> <clause class="fontsize10" id="ye914ad2d-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><sidenote>Applicability.</sidenote><heading class="fontsize10"><inline class="smallCaps">Special rule for disabilities occurring after 1994</inline>.—</heading><content>In the case of disabilities occurring in plan years beginning after December 31, 1994, the tables under clause (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.</content></clause> </subparagraph> </paragraph> <paragraph class="fontsize10" id="ye914ad2f-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="4">“(4) </num><heading class="fontsize10"><inline class="smallCaps">Certain service disregarded</inline>.—</heading><subparagraph class="fontsize10" id="ye914ad30-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><sidenote>Applicability.</sidenote><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><content>In the case of a participant to whom this paragraph 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.</content></subparagraph> <subparagraph class="fontsize10" id="ye914ad32-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><heading class="fontsize10"><inline class="smallCaps">Applicable percentage</inline>.—</heading><content>For purposes of this subparagraph, the applicable percentage shall be determined as follows:<?GPOvSpace 04?> <xhtml:table xmlns:xhtml="http://www.w3.org/1999/xhtml" class="Quoted fullWidth" style="border-collapse:collapse; border=0; -uslm-lc: 'c2,L0,tp0,p10,10/12,s150,27'; "><xhtml:colgroup><xhtml:col role="stub" style="min-width: 286pt;"/> <xhtml:col role="figure" style="width:139pt ; max-width:139pt;"/> </xhtml:colgroup><xhtml:thead><xhtml:tr class="header" style="font-size:10pt;-uslm-lc:h1"> <xhtml:th style="min-width: 286.0pt; text-align:left; vertical-align:middle;">“If the years of participation are:</xhtml:th><xhtml:th style="width:139.0pt ; max-width:139.0pt; text-align:right; vertical-align:middle;">The applicable percentage is:</xhtml:th></xhtml:tr> </xhtml:thead><xhtml:tbody style="line-height:12pt; font-size:10pt;"><xhtml:tr style="-uslm-lc:I01"><xhtml:td leaderAlign="bottomLine" leaders="yes" stubHierarchy="1" style=" text-align:left; vertical-align:top;"><inline>1</inline></xhtml:td><xhtml:td leaders="no" style=" text-align:right; vertical-align:bottom;">20</xhtml:td></xhtml:tr> <xhtml:tr style="-uslm-lc:I01"><xhtml:td leaderAlign="bottomLine" leaders="yes" stubHierarchy="1" style=" text-align:left; vertical-align:top;"><inline>2</inline></xhtml:td><xhtml:td leaders="no" style=" text-align:right; vertical-align:bottom;">40</xhtml:td></xhtml:tr> <xhtml:tr style="-uslm-lc:I01"><xhtml:td leaderAlign="bottomLine" leaders="yes" stubHierarchy="1" style=" text-align:left; vertical-align:top;"><inline>3</inline></xhtml:td><xhtml:td leaders="no" style=" text-align:right; vertical-align:bottom;">60</xhtml:td></xhtml:tr> <xhtml:tr style="-uslm-lc:I01"><xhtml:td leaderAlign="bottomLine" leaders="yes" stubHierarchy="1" style=" text-align:left; vertical-align:top;"><inline>4</inline></xhtml:td><xhtml:td leaders="no" style=" text-align:right; vertical-align:bottom;">80</xhtml:td></xhtml:tr> <xhtml:tr style="-uslm-lc:I01"><xhtml:td leaderAlign="bottomLine" leaders="yes" stubHierarchy="1" style=" text-align:left; vertical-align:top;"><inline>5 or more</inline></xhtml:td><xhtml:td leaders="no" style=" text-align:right; vertical-align:bottom;">100.</xhtml:td></xhtml:tr> </xhtml:tbody></xhtml:table><?GPOvSpace 04?></content></subparagraph> <subparagraph class="fontsize10" id="ye914ad33-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="C">“(C) </num><heading class="fontsize10"><inline class="smallCaps">Participants to whom paragraph applies</inline>.—</heading><chapeau>This subparagraph shall apply to any participant who, at the time of becoming a participant—</chapeau><clause class="fontsize10" id="ye914ad34-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><content>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,</content></clause> <clause class="fontsize10" id="ye914ad35-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>who first becomes a participant under the plan in a plan year beginning after December 31, 1987, and</content></clause> <clause class="fontsize10" id="ye914ad36-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="iii">“(iii) </num><content>has years of service greater than the minimum years of service necessary for eligibility to participate in the plan.</content></clause> </subparagraph> <subparagraph class="fontsize10" id="ye914ad37-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="D">“(D) </num><heading class="fontsize10"><inline class="smallCaps">Election</inline>.—</heading><content>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 of the Treasury.<page identifier="/us/stat/128/1114">128 STAT. 1114</page></content></subparagraph> </paragraph> </subsection> <subsection class="firstIndent0 fontsize10" id="ye914ad38-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><sidenote>Definition.</sidenote><heading class="fontsize10"><inline class="smallCaps">Funded Current Liability Percentage</inline>.—</heading><chapeau>For purposes of this section, the term ‘<term>funded current liability percentage</term>’ means, with respect to any plan year, the percentage which—</chapeau><paragraph class="fontsize10" id="ye914ad3a-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="1">“(1) </num><content>the value of the plan’s assets determined under subsection (c)(2), is of</content></paragraph> <paragraph class="fontsize10" id="ye914ad3b-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="2">“(2) </num><content>the current liability under the plan.</content></paragraph> </subsection> <subsection class="firstIndent0 fontsize10" id="ye914ad3c-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="j">“(j) </num><heading class="fontsize10"><inline class="smallCaps">Funding Restoration Status</inline>.—</heading><chapeau>Notwithstanding any other provisions of this section—</chapeau><paragraph class="fontsize10" id="ye914ad3d-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="1">“(1) </num><heading class="fontsize10"><inline class="smallCaps">Normal cost payment</inline>.—</heading><subparagraph class="fontsize10" id="ye914ad3e-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><sidenote>Definitions.</sidenote><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><chapeau>In the case of a CSEC plan that is in funding restoration status for a plan year, for purposes of section 302, the term ‘<term>accumulated funding deficiency</term>’ means, for such plan year, the greater of—</chapeau><clause class="fontsize10" id="ye914ad40-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><content>the amount described in subsection (a), or</content></clause> <clause class="fontsize10" id="ye914ad41-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>the excess of the normal cost of the plan for the plan year over the amount actually contributed to or under the plan for the plan year.</content></clause> </subparagraph> <subparagraph class="fontsize10" id="ye914ad42-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><heading class="fontsize10"><inline class="smallCaps">Normal cost</inline>.—</heading><content>In the case of a CSEC plan that uses a spread gain funding method, for purposes of this subsection, the term ‘<term>normal cost</term>’ means normal cost as determined under the entry age normal funding method.</content></subparagraph> </paragraph> <paragraph class="fontsize10" id="ye914ad43-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="2">“(2) </num><heading class="fontsize10"><inline class="smallCaps">Plan amendments</inline>.—</heading><content>In the case of a CSEC plan that is in funding restoration status for a plan year, no amendment to such plan may take effect during such plan year if such amendment has the effect of increasing liabilities of the plan by means of increases in benefits, establishment of new benefits, changing the rate of benefit accrual, or changing the rate at which benefits become nonforfeitable. This paragraph shall not apply to any plan amendment that is required to comply with any applicable <sidenote>Termination date.</sidenote>law. This paragraph shall cease to apply with respect to any plan year, effective as of the first day of the plan year (or if later, the effective date of the amendment) upon payment by the plan sponsor of a contribution to the plan (in addition to any contribution required under this section without regard to this paragraph) in an amount equal to the increase in the funding liability of the plan attributable to the plan amendment.</content></paragraph> <paragraph class="fontsize10" id="ye914ad45-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="3">“(3) </num><sidenote>Deadline.Certification.</sidenote><heading class="fontsize10"><inline class="smallCaps">Funding restoration plan</inline>.—</heading><content>The sponsor of a CSEC plan shall establish a written funding restoration plan within 180 days of the receipt by the plan sponsor of a certification from the plan actuary that the plan is in funding restoration status for a plan year. Such funding restoration plan shall consist of actions that are calculated, based on reasonably anticipated experience and reasonable actuarial assumptions, to increase the plan’s funded percentage to 100 percent over a period that is not longer than the greater of 7 years or the shortest amount of time practicable. Such funding restoration plan shall take into account contributions required under this section (without regard to this paragraph). If a plan remains in funding restoration status for 2 or more years, such funding restoration plan shall be updated each year after the 1st such year within 180 days of receipt by the plan sponsor of a certification from the plan actuary that the plan remains in funding restoration status for the plan year.</content></paragraph> <paragraph class="fontsize10" id="ye914d358-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="4">“(4) </num><sidenote>Deadline.</sidenote><heading class="fontsize10"><inline class="smallCaps">Annual certification by plan actuary</inline>.—</heading><chapeau>Not later than the 90th day of each plan year of a CSEC plan, the plan actuary shall certify to the plan sponsor whether or not <page identifier="/us/stat/128/1115">128 STAT. 1115</page> the plan is in funding restoration status for the plan year, based on the plan’s funded percentage as of the beginning of the plan year. For this purpose, the actuary may conclusively rely on an estimate of—</chapeau><subparagraph class="fontsize10" id="ye914d35a-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><content>the plan’s funding liability, based on the funding liability of the plan for the preceding plan year and on reasonable actuarial estimates, assumptions, and methods, and</content></subparagraph> <subparagraph class="fontsize10" id="ye914d35b-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><content>the amount of any contributions reasonably anticipated to be made for the preceding plan year.</content></subparagraph> <continuation class="firstIndent1 fontsize10" id="xe914d35c-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122">Contributions described in subparagraph (B) shall be taken into account in determining the plan’s funded percentage as of the beginning of the plan year.</continuation></paragraph> <paragraph class="fontsize10" id="ye914d35d-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="5">“(5) </num><heading class="fontsize10"><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>For purposes of this subsection—</chapeau><subparagraph class="fontsize10" id="ye914d35e-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><heading class="fontsize10"><inline class="smallCaps">Funding restoration status</inline>.—</heading><content>A CSEC plan shall be treated as in funding restoration status for a plan year if the plan’s funded percentage as of the beginning of such plan year is less than 80 percent.</content></subparagraph> <subparagraph class="fontsize10" id="ye914d35f-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><heading class="fontsize10"><inline class="smallCaps">Funded percentage</inline>.—</heading><chapeau>The term ‘<term>funded percentage</term>’ means the ratio (expressed as a percentage) which—</chapeau><clause class="fontsize10" id="ye914d360-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><content>the value of plan assets (as determined under subsection (c)(2)), bears to</content></clause> <clause class="fontsize10" id="ye914d361-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>the plan’s funding liability.</content></clause> </subparagraph> <subparagraph class="fontsize10" id="ye914d362-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="C">“(C) </num><heading class="fontsize10"><inline class="smallCaps">Funding liability</inline>.—</heading><content>The term ‘<term>funding liability</term>’ for a plan year means the present value of all benefits accrued or earned under the plan as of the beginning of the plan year, based on the assumptions used by the plan pursuant to this section, including the interest rate described in subsection (b)(5)(A) (without regard to subsection (b)(5)(B)).</content></subparagraph> <subparagraph class="fontsize10" id="ye914d363-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="D">“(D) </num><heading class="fontsize10"><inline class="smallCaps">Spread gain funding method</inline>.—</heading><content>The term ‘<term>spread gain funding method</term>’ has the meaning given such term under rules and forms issued by the Secretary of the Treasury.”</content></subparagraph> </paragraph> </subsection> </section> </quotedContent>.</content></subsection> <subsection class="firstIndent0 fontsize10" id="ye914d364-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/b" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="b">(b) </num><heading class="fontsize10"><inline class="smallCaps">Separate Rules for CSEC Plans</inline>.—</heading><paragraph class="fontsize10" id="ye914d365-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/b/1" role="instruction" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="1">(1) </num><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><content>Paragraph (2) of section 302(a) of the Employee Retirement Income Security Act of 1974 (<ref href="/us/usc/t29/s1082/a">29 U.S.C. 1082(a)</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="delete">striking</amendingAction> “<quotedText>and</quotedText>” at the end of subparagraph (B), by <amendingAction type="delete">striking</amendingAction> the period at the end of subparagraph (C) and <amendingAction type="insert">inserting</amendingAction> “<quotedText>, and</quotedText>”, and by <amendingAction type="insert">inserting</amendingAction> at the end thereof the following new subparagraph:<quotedContent><subparagraph class="fontsize10" id="ye914d366-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="D">“(D) </num><content>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 306 as of the end of the plan year.”</content></subparagraph> </quotedContent>.</content></paragraph> <paragraph class="fontsize10" id="ye914d367-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/b/2" role="instruction" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="2">(2) </num><heading class="fontsize10"><inline class="smallCaps">Conforming amendments</inline>.—</heading><chapeau>Section 302 of the Employee Retirement Income Security Act of 1974 (<ref href="/us/usc/t29/s1082">29 U.S.C. 1082</ref>) <amendingAction type="amend">is amended</amendingAction>—</chapeau><subparagraph class="fontsize10" id="ye914d368-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/b/2/A" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">(A) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>multiemployer plan</quotedText>” 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 <amendingAction type="insert">inserting</amendingAction> “<quotedText>multiemployer plan or a CSEC plan</quotedText>”,</content></subparagraph> <subparagraph class="fontsize10" id="ye914d369-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/b/2/B" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">(B) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>303(j)</quotedText>” in paragraph (1) of subsection (b) and <amendingAction type="insert">inserting</amendingAction> “<quotedText>303(j) or under section 306(f)</quotedText>”,</content></subparagraph> <subparagraph class="fontsize10" id="ye914d36a-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/b/2/C" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="C">(C)</num><clause class="inline" id="ye914d36b-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/b/2/C/i"><num value="i">(i) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>and</quotedText>” at the end of clause (i) of subsection (c)(1)(B),<page identifier="/us/stat/128/1116">128 STAT. 1116</page></content></clause> <clause class="indentUp0 fontsize10" id="ye914d36c-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/b/2/C/ii" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">(ii) </num><content>by <amendingAction type="delete">striking</amendingAction> the period at the end of clause (ii) of subsection (c)(1)(B), and <amendingAction type="insert">inserting</amendingAction> “<quotedText>, and</quotedText>”, and</content></clause> <clause class="indentUp0 fontsize10" id="ye914d36d-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/b/2/C/iii" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="iii">(iii) </num><content>by <amendingAction type="insert">inserting</amendingAction> the following new clause after clause (ii) of subsection (c)(1)(B):<quotedContent><subsection class="indentUp1 fontsize10" id="ye914d36e-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="iii">“(iii)</num><content> in the case of a CSEC plan, the funding standard account shall be credited under section 306(b)(3)(C) with the amount of the waived funding deficiency and such amount shall be amortized as required under section 306(b)(2)(C).”</content></subsection> </quotedContent>,</content></clause> </subparagraph> <subparagraph class="fontsize10" id="ye914d36f-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/b/2/D" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="D">(D) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>under paragraph (1)</quotedText>” in clause (i) of subsection (c)(4)(A) and <amendingAction type="insert">inserting</amendingAction> “<quotedText>under paragraph (1) or for granting an extension under section 306(d)</quotedText>”,</content></subparagraph> <subparagraph class="fontsize10" id="ye914d370-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/b/2/E" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="E">(E) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>waiver under this subsection</quotedText>” in subparagraph (B) of subsection (c)(4) and <amendingAction type="insert">inserting</amendingAction> “<quotedText>waiver under this subsection or an extension under 306(d)</quotedText>”,</content></subparagraph> <subparagraph class="fontsize10" id="ye914d371-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/b/2/F" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="F">(F) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>waiver or modification</quotedText>” in subclause (I) of subsection (c)(4)(B)(i) and <amendingAction type="insert">inserting</amendingAction> “<quotedText>waiver, modification, or extension</quotedText>”,</content></subparagraph> <subparagraph class="fontsize10" id="ye914d372-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/b/2/G" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="G">(G) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>waivers</quotedText>” in the heading of subsection (c)(4)(C) and of clause (ii) of subsection (c)(4)(C) and <amendingAction type="insert">inserting</amendingAction> “<quotedText>waivers or extensions</quotedText>”,</content></subparagraph> <subparagraph class="fontsize10" id="ye914d373-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/b/2/H" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="H">(H) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>section 304(d)</quotedText>” in subparagraph (A) of subsection (c)(7) and in paragraph (2) of subsection (d) and <amendingAction type="insert">inserting</amendingAction> “<quotedText>section 304(d) or section 306(d)</quotedText>”,</content></subparagraph> <subparagraph class="fontsize10" id="ye914d374-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/b/2/I" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="I">(I) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>and</quotedText>” at the end of subclause (I) of subsection (c)(4)(C)(i) and <amendingAction type="add">adding</amendingAction> “<quotedText>or the accumulated funding deficiency under section 306, whichever is applicable,</quotedText>”,</content></subparagraph> <subparagraph class="fontsize10" id="ye914d375-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/b/2/J" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="J">(J) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>303(e)(2),</quotedText>” in subclause (II) of subsection (c)(4)(C)(i) and <amendingAction type="insert">inserting</amendingAction> “<quotedText>303(e)(2) or 306(b)(2)(C), whichever is applicable, and</quotedText>”,</content></subparagraph> <subparagraph class="fontsize10" id="ye914d376-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/b/2/K" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="K">(K) </num><content>by <amendingAction type="add">adding</amendingAction> immediately after subclause (II) of subsection (c)(4)(C)(i) the following new subclause:<quotedContent><subclause class="indentUp2 fontsize10" id="ye914fa87-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658128"><num class="fontsize10" style="-uslm-lc:emspace2" value="III">“(III) </num><content>the total amounts not paid by reason of an extension in effect under section 306(d),”</content></subclause> </quotedContent>,</content></subparagraph> <subparagraph class="fontsize10" id="ye914fa88-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/b/2/L" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="L">(L) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>for waivers of</quotedText>” in clause (ii) of subsection (c)(4)(C) and <amendingAction type="insert">inserting</amendingAction> “<quotedText>for waivers or extensions with respect to</quotedText>”, and</content></subparagraph> <subparagraph class="fontsize10" id="ye914fa89-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/b/2/M" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="M">(M) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>single-employer plan</quotedText>” in subparagraph (A) of subsection (a)(2) and in clause (i) of subsection (c)(1)(B) and <amendingAction type="insert">inserting</amendingAction> “<quotedText>single-employer plan (other than a CSEC plan)</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="fontsize10" id="ye914fa8a-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/b/3" role="instruction" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="3">(3) </num><heading class="fontsize10"><inline class="smallCaps">Benefit restrictions</inline>.—</heading><content>Subsection (g) of section 206 of the Employee Retirement Income Security Act of 1974 (<ref href="/us/usc/t29/s1056">29 U.S.C. 1056</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end thereof the following new paragraph:<quotedContent><paragraph class="indentUp0 fontsize10" id="ye914fa8b-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="12">“(12) </num><heading class="fontsize10"><inline class="smallCaps">CSEC plans</inline>.—</heading><content>This subsection shall not apply to a CSEC plan (as defined in section 210(f)).”</content></paragraph> </quotedContent>.</content></paragraph> <paragraph class="fontsize10" id="ye914fa8c-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/b/4" role="instruction" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="4">(4) </num><heading class="fontsize10"><inline class="smallCaps">Benefit increases</inline>.—</heading><content>Paragraph (3) of section 204(i) of the Employee Retirement Income Security Act of 1974 (<ref href="/us/usc/t29/s1054/i">29 U.S.C. 1054(i)</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="delete">striking</amendingAction> “<quotedText>multiemployer plans</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>multiemployer plans or CSEC plans</quotedText>”.</content></paragraph> <paragraph class="fontsize10" id="ye914fa8d-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/b/5" role="instruction" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="5">(5) </num><heading class="fontsize10"><inline class="smallCaps">Section 103</inline>.—</heading><content>Subparagraph (B) of section 103(d)(8) of the Employee Retirement Income Security Act of 1974 (<ref href="/us/usc/t29/s1023/d/8">29 U.S.C. 1023(d)(8)</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="delete">striking</amendingAction> “<quotedText>303(h) and 304(c)(3)</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>303(h), 304(c)(3), and 306(c)(3)</quotedText>”.<page identifier="/us/stat/128/1117">128 STAT. 1117</page></content></paragraph> <paragraph class="fontsize10" id="ye914fa8e-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/b/6" role="instruction" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="6">(6) </num><heading class="fontsize10"><inline class="smallCaps">Section 502</inline>.—</heading><chapeau>Subsection (c) of section 502 of the Employee Retirement Income Security Act of <sidenote><ref href="/us/usc/t29/s1132">29 USC 1132</ref>.</sidenote>1974 <amendingAction type="amend">is amended</amendingAction>—</chapeau><subparagraph class="fontsize10" id="ye914fa90-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/b/6/A" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">(A) </num><content>by <amendingAction type="redesignate">redesignating</amendingAction> the last paragraph as paragraph (11), and</content></subparagraph> <subparagraph class="fontsize10" id="ye914fa91-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/b/6/B" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">(B) </num><content>by <amendingAction type="add">adding</amendingAction> at the end the following new paragraph:<quotedContent><paragraph class="indentDown1 fontsize10" id="ye914fa92-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="12">“(12) </num><content>The Secretary may assess a civil penalty against any sponsor of a CSEC plan of up to $100 a day from the date of the plan sponsor’s failure to comply with the requirements of section 306(j)(3) to establish or update a funding restoration plan.”</content></paragraph> </quotedContent>.</content></subparagraph> </paragraph> <paragraph class="fontsize10" id="ye914fa93-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/b/7" role="instruction" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="7">(7) </num><heading class="fontsize10"><inline class="smallCaps">Section 4003</inline>.—</heading><content>Subparagraph (B) of section 4003(e)(1) of the Employee Retirement Income Security Act of 1974 (<ref href="/us/usc/t29/s1303/e/1">29 U.S.C. 1303(e)(1)</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="delete">striking</amendingAction> “<quotedText>303(k)(1)(A) and (B) of this Act or section 430(k)(1)(A) and (B) of the Internal Revenue Code of 1986</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>303(k)(1)(A) and (B) or 306(g)(1)(A) and (B) of this Act or section 430(k)(1)(A) and (B) or 433(g)(1)(A) and (B) of the Internal Revenue Code of 1986</quotedText>”.</content></paragraph> <paragraph class="fontsize10" id="ye914fa94-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/b/8" role="instruction" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="8">(8) </num><heading class="fontsize10"><inline class="smallCaps">Section 4010</inline>.—</heading><content>Paragraph (2) of section 4010(b) of the Employee Retirement Income Security Act of 1974 (<ref href="/us/usc/t29/s1310/b">29 U.S.C. 1310(b)</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="delete">striking</amendingAction> “<quotedText>303(k)(1)(A) and (B) of this Act or section 430(k)(1)(A) and (B) of the Internal Revenue Code of 1986</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>303(k)(1)(A) and (B) or 306(g)(1)(A) and (B) of this Act or section 430(k)(1)(A) and (B) or 433(g)(1)(A) and (B) of the Internal Revenue Code of 1986</quotedText>”.</content></paragraph> <paragraph class="fontsize10" id="ye914fa95-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/b/9" role="instruction" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="9">(9) </num><heading class="fontsize10"><inline class="smallCaps">Section 4071</inline>.—</heading><content>Section 4071 of the Employee Retirement Income Security Act of 1974 (<ref href="/us/usc/t29/s1371">29 U.S.C. 1371</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="delete">striking</amendingAction> “<quotedText>section 303(k)(4)</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>section 303(k)(4) or 306(g)(4)</quotedText>”.</content></paragraph> </subsection> </section> <section id="d355206e2398" identifier="/us/pl/113/97/tI/s103" style="-uslm-lc:I658143"><num class="fontsize12" value="103">SEC. 103. </num><heading>ELECTIONS.</heading><subsection class="firstIndent0 fontsize10" id="ye915bde6-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s103/a" role="instruction" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="a">(a) </num><heading class="fontsize10"><inline class="smallCaps">Election Not To Be Treated as a CSEC Plan</inline>.—</heading><content>Subsection (f) of section 210 of the Employee Retirement Income Security Act of 1974, as added by section 101, <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following new paragraph:<quotedContent><paragraph class="fontsize10" id="ye915bde7-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="3">“(3) </num><heading class="fontsize10"><inline class="smallCaps">Election</inline>.—</heading><subparagraph class="fontsize10" id="ye915bde8-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><sidenote>Deadline.</sidenote><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><content>If a plan falls within the definition of a CSEC plan under this subsection (without regard to this paragraph), such plan shall be a CSEC plan unless the plan sponsor elects not later than the close of the first plan year of the plan beginning after December 31, 2013, not to be treated as a CSEC plan. An election under the preceding sentence shall take effect for such plan year and, once made, may be revoked only with the consent of the Secretary of the Treasury.</content></subparagraph> <subparagraph class="fontsize10" id="ye915bdea-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><heading class="fontsize10"><inline class="smallCaps">Special rule</inline>.—</heading><content>If a plan described in subparagraph (A) is treated as a CSEC plan, section 104 of the Pension Protection Act of 2006, as amended by the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010, shall cease to apply to such plan as of the first date as of which such plan is treated as a CSEC plan.”</content></subparagraph> </paragraph> </quotedContent>.</content></subsection> <subsection class="firstIndent0 fontsize10" id="ye915bdeb-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s103/b" role="instruction" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="b">(b) </num><heading class="fontsize10"><inline class="smallCaps">Election To Cease To Be Treated as an Eligible Charity Plan</inline>.—</heading><chapeau>Subsection (d) of section 104 of the Pension Protection Act of 2006, as added by section 202 of the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of <sidenote><ref href="/us/usc/t26/s401">26 USC 401 note</ref>.</sidenote>2010, <amendingAction type="amend">is amended</amendingAction>—</chapeau><page identifier="/us/stat/128/1118">128 STAT. 1118</page> <paragraph class="fontsize10" id="ye915bded-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s103/b/1" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="1">(1) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>For purposes of</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>(1) <headingText class="smallCaps">In general.—</headingText>For purposes of</quotedText>”, and</content></paragraph> <paragraph class="fontsize10" id="ye915bdee-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s103/b/2" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="2">(2) </num><content>by <amendingAction type="add">adding</amendingAction> at the end the following:<quotedContent><paragraph class="indentUp0 fontsize10" id="ye9165a2f-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="2">“(2) </num><heading class="fontsize10"><inline class="smallCaps">Election not to be an eligible charity plan</inline>.—</heading><content>A plan sponsor may elect for a plan to cease to be treated as an eligible charity plan for plan years beginning after December 31, 2013. Such election shall be made at such time and in such form and manner as shall be prescribed by the Secretary of the Treasury. Any such election may be revoked only with the consent of the Secretary of the Treasury.</content></paragraph> <paragraph class="indentUp0 fontsize10" id="ye9165a30-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="3">“(3) </num><heading class="fontsize10"><inline class="smallCaps">Election to use funding options available to other plan sponsors</inline>.—</heading><subparagraph class="fontsize10" id="ye9165a31-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><content>A plan sponsor that makes the election described in paragraph (2) may elect for a plan to apply the rules described in subparagraphs (B), (C), and (D) for plan years beginning after December 31, 2013. Such election shall be made at such time and in such form and manner as shall be prescribed by the Secretary of the Treasury. Any such election may be revoked only with the consent of the Secretary of the Treasury.</content></subparagraph> <subparagraph class="fontsize10" id="ye9165a32-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><chapeau>Under the rules described in this subparagraph, for the first plan year beginning after December 31, 2013, a plan has—</chapeau><clause class="fontsize10" id="ye9165a33-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><content>an 11-year shortfall amortization base,</content></clause> <clause class="fontsize10" id="ye9165a34-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>a 12-year shortfall amortization base, and</content></clause> <clause class="fontsize10" id="ye9165a35-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="iii">“(iii) </num><content>a 7-year shortfall amortization base.</content></clause> </subparagraph> <subparagraph class="fontsize10" id="ye9165a36-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="C">“(C) </num><sidenote>Applicability.</sidenote><chapeau>Under the rules described in this subparagraph, section 303(c)(2)(A) and (B) of the Employee Retirement Income Security Act of 1974, and section 430(c)(2)(A) and (B) of the Internal Revenue Code of 1986 shall be applied by—</chapeau><clause class="fontsize10" id="ye9165a38-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><content>in the case of an 11-year shortfall amortization base, substituting ‘11-plan-year period’ for ‘7-plan-year period’ wherever such phrase appears, and</content></clause> <clause class="fontsize10" id="ye9165a39-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>in the case of a 12-year shortfall amortization base, substituting ‘12-plan-year period’ for ‘7-plan-year period’ wherever such phrase appears.</content></clause> </subparagraph> <subparagraph class="fontsize10" id="ye9165a3a-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="D">“(D) </num><sidenote>Applicability.</sidenote><chapeau>Under the rules described in this subparagraph, section 303(c)(7) of the Employee Retirement Income Security Act of 1974 and section 430(c)(7) of the Internal Revenue Code of 1986 shall apply to a plan for which an election has been made under subparagraph (A). Such provisions shall apply in the following manner:</chapeau><clause class="fontsize10" id="ye9165a3c-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><content>The first plan year beginning after December 31, 2013, shall be treated as an election year, and no other plan years shall be so treated.</content></clause> <clause class="fontsize10" id="ye9165a3d-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>All references in section 303(c)(7) of such Act and section 430(c)(7) of such Code to ‘February 28, 2010’ or ‘March 1, 2010’ shall be treated as references to ‘February 28, 2013’ or ‘March 1, 2013’, respectively.</content></clause> </subparagraph> <subparagraph class="fontsize10" id="ye9165a3e-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="E">“(E) </num><chapeau>For purposes of this paragraph, the 11-year amortization base is an amount, determined for the first plan year beginning after December 31, 2013, equal to the unamortized principal amount of the shortfall amortization base (as defined in section 303(c)(3) of the Employee Retirement Income Security Act of 1974 and section 430(c)(3) of the Internal Revenue Code of 1986) that would <page identifier="/us/stat/128/1119">128 STAT. 1119</page> have applied to the plan for the first plan beginning after December 31, 2009, if—</chapeau><clause class="fontsize10" id="ye9165a3f-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><content>the plan had never been an eligible charity plan,</content></clause> <clause class="fontsize10" id="ye9165a40-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><sidenote>Applicability.</sidenote><content>the plan sponsor had made the election described in section 303(c)(2)(D)(i) of the Employee Retirement Income Security Act of 1974 and in section 430(c)(2)(D)(i) of the Internal Revenue Code of 1986 to have section 303(c)(2)(D)(i) of such Act and section 430(c)(2)(D)(iii) of such Code apply with respect to the shortfall amortization base for the first plan year beginning after December 31, 2009, and</content></clause> <clause class="fontsize10" id="ye9165a42-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="iii">“(iii) </num><content>no event had occurred under paragraph (6) or (7) of section 303(c) of such Act or paragraph (6) or (7) of section 430(c) of such Code that, as of the first day of the first plan year beginning after December 31, 2013, would have modified the shortfall amortization base or the shortfall amortization installments with respect to the first plan year beginning after December 31, 2009.</content></clause> </subparagraph> <subparagraph class="fontsize10" id="ye9165a43-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="F">“(F) </num><sidenote>Applicability.</sidenote><chapeau>For purposes of this paragraph, the 12-year amortization base is an amount, determined for the first plan year beginning after December 31, 2013, equal to the unamortized principal amount of the shortfall amortization base (as defined in section 303(c)(3) of the Employee Retirement Income Security Act of 1974 and section 430(c)(3) of the Internal Revenue Code of 1986) that would have applied to the plan for the first plan beginning after December 31, 2010, if—</chapeau><clause class="fontsize10" id="ye9168155-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><content>the plan had never been an eligible charity plan,</content></clause> <clause class="fontsize10" id="ye9168156-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>the plan sponsor had made the election described in section 303(c)(2)(D)(i) of the Employee Retirement Income Security Act of 1974 and in section 430(c)(2)(D)(i) of the Internal Revenue Code of 1986 to have section 303(c)(2)(D)(i) of such Act and section 430(c)(2)(D)(iii) of such Code apply with respect to the shortfall amortization base for the first plan year beginning after December 31, 2010, and</content></clause> <clause class="fontsize10" id="ye9168157-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="iii">“(iii) </num><content>no event had occurred under paragraph (6) or (7) of section 303(c) of such Act or paragraph (6) or (7) of section 430(c) of such Code that, as of the first day of the first plan year beginning after December 31, 2013, would have modified the shortfall amortization base or the shortfall amortization installments with respect to the first plan year beginning after December 31, 2010.</content></clause> </subparagraph> <subparagraph class="fontsize10" id="ye9168158-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="G">“(G) </num><chapeau>For purposes of this paragraph, the 7-year shortfall amortization base is an amount, determined for the first plan year beginning after December 31, 2013, equal to—</chapeau><clause class="fontsize10" id="ye9168159-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><content>the shortfall amortization base for the first plan year beginning after December 31, 2013, without regard to this paragraph, minus</content></clause> <clause class="fontsize10" id="ye916815a-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>the sum of the 11-year shortfall amortization base and the 12-year shortfall amortization base.<page identifier="/us/stat/128/1120">128 STAT. 1120</page></content></clause> </subparagraph> </paragraph> <paragraph class="indentUp0 fontsize10" id="ye916815b-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="4">“(4) </num><sidenote>Deadline.</sidenote><heading class="fontsize10"><inline class="smallCaps">Retroactive election</inline>.—</heading><content>Not later than December 31, 2014, a plan sponsor may make a one-time, irrevocable, retroactive election to not be treated as an eligible charity plan. Such<sidenote>Effective date.</sidenote> election shall be effective for plan years beginning after December 31, 2007, and shall be made by providing reasonable notice to the Secretary of the Treasury.”</content></paragraph> </quotedContent>.</content></paragraph> </subsection> <subsection class="firstIndent0 fontsize10" id="ye916815e-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s103/c" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="c">(c) </num><sidenote><ref href="/us/usc/t26/s410">26 USC 410 note</ref>.</sidenote><heading class="fontsize10"><inline class="smallCaps">Deemed Election</inline>.—</heading><chapeau>For purposes of the Internal Revenue Code of 1986, sections 4(b)(2) and 4021(b)(3) of the Employee Retirement Income Security Act of 1974, and all other purposes, a plan shall be deemed to have made an irrevocable election under section 410(d) of the Internal Revenue Code of 1986 if—</chapeau><paragraph class="fontsize10" id="ye9168160-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s103/c/1" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="1">(1) </num><content>the plan was established before January 1, 2014;</content></paragraph> <paragraph class="fontsize10" id="ye9168161-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s103/c/2" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="2">(2) </num><content>the plan falls within the definition of a CSEC plan;</content></paragraph> <paragraph class="fontsize10" id="ye9168162-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s103/c/3" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="3">(3) </num><content>the plan sponsor does not make an election under section 210(f)(3)(A) of the Employee Retirement Income Security Act of 1974 and section 414(y)(3)(A) of the Internal Revenue Code of 1986, as added by this Act; and</content></paragraph> <paragraph class="fontsize10" id="ye9168163-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s103/c/4" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="4">(4) </num><content>the plan, plan sponsor, administrator, or fiduciary remits one or more premium payments for the plan to the Pension Benefit Guaranty Corporation for a plan year beginning after December 31, 2013.</content></paragraph> </subsection> <subsection class="firstIndent0 fontsize10" id="ye9168164-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s103/d" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="d">(d) </num><sidenote><ref href="/us/usc/t26/s1060">26 USC 1060 note</ref>.</sidenote><heading class="fontsize10"><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply as of the date of enactment of this Act.</content></subsection> </section> <section id="d355206e2710" identifier="/us/pl/113/97/tI/s104" style="-uslm-lc:I658143"><num class="fontsize12" value="104">SEC. 104. </num><heading>TRANSPARENCY.</heading><subsection class="firstIndent0 fontsize10" id="ye916cf86-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s104/a" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="a">(a) </num><heading class="fontsize10"><inline class="smallCaps">Notice to Participants</inline>.—</heading><paragraph class="fontsize10" id="ye916cf87-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s104/a/1" role="instruction" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="1">(1) </num><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><content>Paragraph (2) of section 101(f) of the Employee Retirement Income Security Act of 1974 (<ref href="/us/usc/t29/s1021/f">29 U.S.C. 1021(f)</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following new subparagraph:<quotedContent><subparagraph class="fontsize10" id="ye916f698-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="E">“(E) </num><heading class="fontsize10"><inline class="smallCaps">Effect of csec plan rules on plan funding</inline>.—</heading><chapeau>In the case of a CSEC plan, each notice under paragraph (1) shall include—</chapeau><clause class="fontsize10" id="ye916f699-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><content>a statement that different rules apply to CSEC plans than apply to single-employer plans,</content></clause> <clause class="fontsize10" id="ye916f69a-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>for the first 2 plan years beginning after December 31, 2013, a statement that, as a result of changes in the law made by the Cooperative and Small Employer Charity Pension Flexibility Act, the contributions to the plan may have changed, and</content></clause> <clause class="fontsize10" id="ye916f69b-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="iii">“(iii) </num><content>in the case of a CSEC plan that is in funding restoration status for the plan year, a statement that the plan is in funding restoration status for such plan year.</content></clause> <continuation class="firstIndent1 fontsize10" id="xe916f69c-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124">A copy of the statement required under clause (iii) shall be provided to the Secretary, the Secretary of the Treasury, and the Director of the Pension Benefit Guaranty Corporation.”</continuation></subparagraph> </quotedContent>.</content></paragraph> <paragraph class="fontsize10" id="ye916f69d-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s104/a/2" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="2">(2) </num><sidenote><ref href="/us/usc/t29/s1021">29 USC 1021 note</ref>.</sidenote><heading class="fontsize10"><inline class="smallCaps">Model notice</inline>.—</heading><content>The Secretary of Labor may modify the model notice required to be published under section 501(c) of the Pension Protection Act of 2006 to include the information described in section 101(f)(2)(E) of the Employee Retirement Income Security Act of 1974, as added by this subsection.</content></paragraph> </subsection> <subsection class="firstIndent0 fontsize10" id="ye916f69f-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s104/b" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="b">(b) </num><heading class="fontsize10"><inline class="smallCaps">Notice of Failure To Meet Minimum Funding Standards</inline>.—</heading><paragraph class="fontsize10" id="ye916f6a0-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s104/b/1" role="instruction" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="1">(1) </num><heading class="fontsize10"><inline class="smallCaps">Pending waivers</inline>.—</heading><content>Paragraph (2) of section 101(d) of the Employee Retirement Income Security Act of 1974 (29 <page identifier="/us/stat/128/1121">128 STAT. 1121</page> U.S.C. 1021(d)) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="delete">striking</amendingAction> “<quotedText>303</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>303 or 306</quotedText>”.</content></paragraph> <paragraph class="fontsize10" id="ye916f6a1-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s104/b/2" role="instruction" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="2">(2) </num><heading class="fontsize10"><inline class="smallCaps">Definitions</inline>.—</heading><content>Paragraph (3) of section 101(d) of the Employee Retirement Income Security Act of 1974 (<ref href="/us/usc/t21/s1021/d">21 U.S.C. 1021(d)</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="delete">striking</amendingAction> “<quotedText>303(j)</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>303(j) or 306(f), whichever is applicable</quotedText>”.</content></paragraph> </subsection> <subsection class="firstIndent0 fontsize10" id="ye916f6a2-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s104/c" role="instruction" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="c">(c) </num><heading class="fontsize10"><inline class="smallCaps">Additional Reporting Requirements</inline>.—</heading><content>Section 103 of the Employee Retirement Income Security Act of 1974 (<ref href="/us/usc/t29/s1023">29 U.S.C. 1023</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following new subsection:<quotedContent><subsection class="firstIndent0 fontsize10" id="ye916f6a3-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="g">“(g) </num><heading class="fontsize10"><inline class="smallCaps">Additional Information With Respect to Multiple Employer Plans</inline>.—</heading><content>With respect to any multiple employer plan, an annual report under this section for a plan year shall include a list of participating employers and a good faith estimate of the percentage of total contributions made by such participating employers during the plan year.”</content></subsection> </quotedContent>.</content></subsection> </section> <section id="d355206e2867" identifier="/us/pl/113/97/tI/s105" style="-uslm-lc:I658143"><num class="fontsize12" value="105">SEC. 105. </num><sidenote><ref href="/us/usc/t29/s1304a">29 USC 1304a</ref>.</sidenote><heading>SPONSOR EDUCATION AND ASSISTANCE.</heading><subsection class="firstIndent0 fontsize10" id="ye9171db5-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s105/a" role="definitions" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="a">(a) </num><heading class="fontsize10"><inline class="smallCaps">Definition</inline>.—</heading><content>In this section, the term “<term>CSEC plan</term>” has the meaning given that term in subsection (f)(1) of section 210 of the Employee Retirement Income Security Act of 1974 (<ref href="/us/usc/t29/s1060/f/1">29 U.S.C. 1060(f)(1)</ref>) (as added by this Act).</content></subsection> <subsection class="firstIndent0 fontsize10" id="ye9171db6-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s105/b" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="b">(b) </num><heading class="fontsize10"><inline class="smallCaps">Education</inline>.—</heading><content>The Participant and Plan Sponsor Advocate established under section 4004 of the Employee Retirement Income Security Act of 1974 (<ref href="/us/usc/t29/s1304">29 U.S.C. 1304</ref>) shall make itself available to assist CSEC plan sponsors and participants as part of the duties it performs under the general supervision of the Board of Directors under section 4004(b) of such Act (<ref href="/us/usc/t29/s1304/b">29 U.S.C. 1304(b)</ref>).</content></subsection> </section>

An Act To amend the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code of 1986 to provide for cooperative and small employer charity pension plans.

Apr. 7, 2014

[H.R. 4275]

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Cooperative and Small Employer Charity Pension Flexibility Act.

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.(a)

29 USC 1001 note.

Short Title.—This Act may be cited as the “Cooperative and Small Employer Charity Pension Flexibility Act”. (b) Table of Contents.—The table of contents of this Act is as follows: Sec. 1. Short title; table of contents. Sec. 2. Congressional findings and declarations of policy. Sec. 3. Effective date. TITLE I— AMENDMENTS TO EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974 AND OTHER PROVISIONS Sec. 101. Definition of cooperative and small employer charity pension plans. Sec. 102. Funding rules applicable to cooperative and small employer charity pension plans. Sec. 103. Elections. Sec. 104. Transparency. Sec. 105. Sponsor education and assistance. TITLE II— AMENDMENTS TO INTERNAL REVENUE CODE OF 1986 Sec. 201. Definition of cooperative and small employer charity pension plans. Sec. 202. Funding rules applicable to cooperative and small employer charity pension plans. Sec. 203. Election not to be treated as a CSEC plan.

SEC. 2.

29 USC 1001 note.

CONGRESSIONAL FINDINGS AND DECLARATIONS OF POLICY. Congress finds as follows:(1) Defined benefit pension plans are a cost-effective way for cooperative associations and charities to provide their employees with economic security in retirement. (2) Many cooperative associations and charitable organizations are only able to provide their employees with defined benefit pension plans because those organizations are able to pool their resources using the multiple employer plan structure. (3) The pension funding rules should encourage cooperative associations and charities to continue to provide their employees with pension benefits.

SEC. 3.

29 USC 401 note.

EFFECTIVE DATE. Unless

Applicability.

otherwise specified in this Act, the provisions of this Act shall apply to years beginning after December 31, 2013.128 STAT. 1102

<num value="I">TITLE I—</num><heading>AMENDMENTS TO EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974 AND OTHER PROVISIONS</heading> <section id="d355206e242" identifier="/us/pl/113/97/tI/s101" role="instruction" style="-uslm-lc:I658143"><num class="fontsize12" value="101">SEC. 101. </num><heading>DEFINITION OF COOPERATIVE AND SMALL EMPLOYER CHARITY PENSION PLANS.</heading><content class="firstIndent0 fontsize10" id="xe90d0b53-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658120"> Section 210 of the Employee Retirement Income Security Act of 1974 (<ref href="/us/usc/t29/s1060">29 U.S.C. 1060</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following new subsection:<quotedContent><subsection class="firstIndent0 fontsize10" id="ye90d3264-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="f">“(f) </num><heading class="fontsize10"><inline class="smallCaps">Cooperative and Small Employer Charity Pension Plans</inline>.—</heading><paragraph class="fontsize10" id="ye90d3265-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="1">“(1) </num><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><chapeau>For purposes of this title, except as provided in this subsection, a CSEC plan is an employee pension benefit plan (other than a multiemployer plan) that is a defined benefit plan—</chapeau><subparagraph class="fontsize10" id="ye90d3266-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><sidenote>Applicability.</sidenote><chapeau>to which section 104 of the Pension Protection Act of 2006 applies, without regard to—</chapeau><clause class="fontsize10" id="ye90d3268-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><content>section 104(a)(2) of such Act;</content></clause> <clause class="fontsize10" id="ye90d3269-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>the amendments to such section 104 by section 202(b) of the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010; and</content></clause> <clause class="fontsize10" id="ye90d326a-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="iii">“(iii) </num><content>paragraph (3)(B); or</content></clause> </subparagraph> <subparagraph class="fontsize10" id="ye90d326b-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><content>that, as of June 25, 2010, was maintained by more than one employer and all of the employers were organizations described in section 501(c)(3) of the Internal Revenue Code of 1986.</content></subparagraph> </paragraph> <paragraph class="fontsize10" id="ye90d326c-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="2">“(2) </num><heading class="fontsize10"><inline class="smallCaps">Aggregation</inline>.—</heading><content>All employers that are treated as a single employer under subsection (b) or (c) of section 414 of the Internal Revenue Code of 1986 shall be treated as a single employer for purposes of determining if a plan was maintained by more than one employer under paragraph (1)(B).”</content></paragraph> </subsection> </quotedContent>.</content></section> <section id="d355206e315" identifier="/us/pl/113/97/tI/s102" style="-uslm-lc:I658143"><num class="fontsize12" value="102">SEC. 102. </num><heading>FUNDING RULES APPLICABLE TO COOPERATIVE AND SMALL EMPLOYER CHARITY PENSION PLANS.</heading><subsection class="firstIndent0 fontsize10" id="ye9103fad-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/a" role="instruction" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="a">(a) </num><heading class="fontsize10"><inline class="smallCaps">In General</inline>.—</heading><content>Part 3 of title I of the Employee Retirement Income Security Act of 1974 (<ref href="/us/usc/t29/s1081/etseq">29 U.S.C. 1081 et seq.</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following new section:<quotedContent><section class="centered fontsize12" id="ye9145e5e-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658143"><num class="fontsize12" value="306">“SEC. 306. </num><sidenote><ref href="/us/usc/t29/s1085a">29 USC 1085a</ref>.</sidenote><heading class="fontsize12">MINIMUM FUNDING STANDARDS.</heading><subsection class="firstIndent0 fontsize10" id="ye9145e60-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="a">“(a) </num><heading class="fontsize10"><inline class="smallCaps">General</inline><sidenote>Definition.</sidenote> Rule.—</heading><content>For purposes of section 302, the term ‘<term>accumulated funding deficiency</term>’ for a CSEC plan means the excess of the total charges to the funding standard account for all plan years (beginning with the first plan year to which section 302 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.</content></subsection> <subsection class="firstIndent0 fontsize10" id="ye9145e62-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="b">“(b) </num><heading class="fontsize10"><inline class="smallCaps">Funding Standard Account</inline>.—</heading><paragraph class="fontsize10" id="ye9145e63-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="1">“(1) </num><heading class="fontsize10"><inline class="smallCaps">Account required</inline>.—</heading><content>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.</content></paragraph> <paragraph class="fontsize10" id="ye9145e64-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="2">“(2) </num><heading class="fontsize10"><inline class="smallCaps">Charges to account</inline>.—</heading><chapeau>For a plan year, the funding standard account shall be charged with the sum of—</chapeau><subparagraph class="fontsize10" id="ye9145e65-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><content>the normal cost of the plan for the plan year,<page identifier="/us/stat/128/1103">128 STAT. 1103</page></content></subparagraph> <subparagraph class="fontsize10" id="ye9145e66-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><chapeau>the amounts necessary to amortize in equal annual installments (until fully amortized)—</chapeau><clause class="fontsize10" id="ye9145e67-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><content>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 section 302 applies, over a period of 40 plan years,</content></clause> <clause class="fontsize10" id="ye9145e68-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>in the case of a plan which comes into existence after January 1, 1974, but before the first day of the first plan year beginning after December 31, 2013, the unfunded past service liability under the plan on the first day of the first plan year to which section 302 applies, over a period of 30 plan years,</content></clause> <clause class="fontsize10" id="ye9145e69-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="iii">“(iii) </num><content>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 15 plan years,</content></clause> <clause class="fontsize10" id="ye9145e6a-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="iv">“(iv) </num><content>separately, with respect to each plan year, the net experience loss (if any) under the plan, over a period of 5 plan years, and</content></clause> <clause class="fontsize10" id="ye9145e6b-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="v">“(v) </num><content>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 10 plan years,</content></clause> </subparagraph> <subparagraph class="fontsize10" id="ye9145e6c-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="C">“(C) </num><content>the amount necessary to amortize each waived funding deficiency (within the meaning of section 302(c)(3)) for each prior plan year in equal annual installments (until fully amortized) over a period of 5 plan years,</content></subparagraph> <subparagraph class="fontsize10" id="ye9145e6d-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="D">“(D) </num><content>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), and</content></subparagraph> <subparagraph class="fontsize10" id="ye9145e6e-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="E">“(E) </num><content>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 section 302(c)(7)(A)(i)(I) (as in effect on the day before the enactment of the Pension Protection Act of 2006).</content></subparagraph> </paragraph> <paragraph class="fontsize10" id="ye9145e6f-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="3">“(3) </num><heading class="fontsize10"><inline class="smallCaps">Credits to account</inline>.—</heading><chapeau>For a plan year, the funding standard account shall be credited with the sum of—</chapeau><subparagraph class="fontsize10" id="ye9145e70-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><content>the amount considered contributed by the employer to or under the plan for the plan year,</content></subparagraph> <subparagraph class="fontsize10" id="ye9145e71-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><chapeau>the amount necessary to amortize in equal annual installments (until fully amortized)—</chapeau><clause class="fontsize10" id="ye9145e72-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><content>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 15 plan years,</content></clause> <clause class="fontsize10" id="ye9145e73-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>separately, with respect to each plan year, the net experience gain (if any) under the plan, over a period of 5 plan years, and</content></clause> <clause class="fontsize10" id="ye9145e74-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="iii">“(iii) </num><content>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 10 plan years,</content></clause> </subparagraph> <subparagraph class="fontsize10" id="ye9145e75-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="C">“(C) </num><content>the amount of the waived funding deficiency (within the meaning of section 302(c)(3)) for the plan year, and<page identifier="/us/stat/128/1104">128 STAT. 1104</page></content></subparagraph> <subparagraph class="fontsize10" id="ye9145e76-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="D">“(D) </num><content>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.</content></subparagraph> </paragraph> <paragraph class="fontsize10" id="ye9145e77-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="4">“(4) </num><heading class="fontsize10"><inline class="smallCaps">Combining and offsetting amounts to be amortized</inline>.—</heading><chapeau>Under<sidenote>Regulations.</sidenote> regulations prescribed by the Secretary of the Treasury, amounts required to be amortized under paragraph (2) or paragraph (3), as the case may be—</chapeau><subparagraph class="fontsize10" id="ye9145e79-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><content>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</content></subparagraph> <subparagraph class="fontsize10" id="ye9145e7a-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><content>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.</content></subparagraph> </paragraph> <paragraph class="fontsize10" id="ye9145e7b-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="5">“(5) </num><heading class="fontsize10"><inline class="smallCaps">Interest</inline>.—</heading><subparagraph class="fontsize10" id="ye9145e7c-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided in subparagraph (B), the funding standard account (and items therein) shall be charged or credited (as determined under regulations prescribed by the Secretary of the Treasury) with interest at the appropriate rate consistent with the rate or rates of interest used under the plan to determine costs.</content></subparagraph> <subparagraph class="fontsize10" id="ye9145e7d-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><heading class="fontsize10"><inline class="smallCaps">Exception</inline>.—</heading><chapeau>The interest rate used for purposes of computing the amortization charge described in subsection (b)(2)(C) or for purposes of any arrangement under subsection (d) for any plan year shall be the greater of—</chapeau><clause class="fontsize10" id="ye9145e7e-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><content>150 percent of the Federal mid-term rate (as in effect under section 1274 of the Internal Revenue Code of 1986 for the 1st month of such plan year), or</content></clause> <clause class="fontsize10" id="ye9145e7f-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>the rate of interest determined under subparagraph (A).</content></clause> </subparagraph> </paragraph> <paragraph class="fontsize10" id="ye9145e80-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="6">“(6) </num><heading class="fontsize10"><inline class="smallCaps">Amortization schedules in effect</inline>.—</heading><content>Amortization schedules for amounts described in paragraphs (2) and (3) that are in effect as of the last day of the last plan year beginning before January 1, 2014, by reason of section 104 of the Pension Protection Act of 2006 shall remain in effect pursuant to their terms and this section, except that such amounts shall not be amortized again under this section.</content></paragraph> </subsection> <subsection class="firstIndent0 fontsize10" id="ye9145e81-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="c">“(c) </num><heading class="fontsize10"><inline class="smallCaps">Special Rules</inline>.—</heading><paragraph class="fontsize10" id="ye9145e82-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="1">“(1) </num><heading class="fontsize10"><inline class="smallCaps">Determinations to be made under funding method</inline>.—</heading><content>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.</content></paragraph> <paragraph class="fontsize10" id="ye9145e83-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="2">“(2) </num><heading class="fontsize10"><inline class="smallCaps">Valuation of assets</inline>.—</heading><subparagraph class="fontsize10" id="ye9145e84-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><sidenote>Regulations.</sidenote><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><content>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 <page identifier="/us/stat/128/1105">128 STAT. 1105</page> takes into account fair market value and which is permitted under regulations prescribed by the Secretary of the Treasury.</content></subparagraph> <subparagraph class="fontsize10" id="ye9145e86-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><heading class="fontsize10"><inline class="smallCaps">Dedicated bond portfolio</inline>.—</heading><content>The Secretary of the Treasury may by regulations provide that the value of any dedicated bond portfolio of a plan shall be determined by using the interest rate under section 302(b)(5) (as in effect on the day before the enactment of the Pension Protection Act of 2006).</content></subparagraph> </paragraph> <paragraph class="fontsize10" id="ye9145e87-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="3">“(3) </num><sidenote>Determination.</sidenote><heading class="fontsize10"><inline class="smallCaps">Actuarial assumptions must be reasonable</inline>.—</heading><chapeau>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—</chapeau><subparagraph class="fontsize10" id="ye9145e89-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><content>each of which is reasonable (taking into account the experience of the plan and reasonable expectations), and</content></subparagraph> <subparagraph class="fontsize10" id="ye9145e8a-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><content>which, in combination, offer the actuary’s best estimate of anticipated experience under the plan.</content></subparagraph> </paragraph> <paragraph class="fontsize10" id="ye9145e8b-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="4">“(4) </num><heading class="fontsize10"><inline class="smallCaps">Treatment of certain changes as experience gain or loss</inline>.—</heading><chapeau>For purposes of this section, if—</chapeau><subparagraph class="fontsize10" id="ye9145e8c-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><content>a change in benefits under the Social Security Act or in other retirement benefits created under Federal or State law, or</content></subparagraph> <subparagraph class="fontsize10" id="ye9145e8d-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><content>a change in the definition of the term ‘<term>wages</term>’ under section 3121 of the Internal Revenue Code of 1986 or a change in the amount of such wages taken into account under regulations prescribed for purposes of section 401(a)(5) of such Code,</content></subparagraph> <continuation class="firstIndent1 fontsize10" id="xe9145e8e-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122">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.</continuation></paragraph> <paragraph class="fontsize10" id="ye9145e8f-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="5">“(5) </num><heading class="fontsize10"><inline class="smallCaps">Funding method and plan year</inline>.—</heading><subparagraph class="fontsize10" id="ye9145e90-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><heading class="fontsize10"><inline class="smallCaps">Funding methods available</inline>.—</heading><content>All funding methods available to CSEC plans under section 302 (as in effect on the day before the enactment of the Pension Protection Act of 2006) shall continue to be available under this section.</content></subparagraph> <subparagraph class="fontsize10" id="ye9145e91-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><heading class="fontsize10"><inline class="smallCaps">Changes</inline>.—</heading><content>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 of the Treasury. 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 of the Treasury.</content></subparagraph> <subparagraph class="fontsize10" id="ye9145e92-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="C">“(C) </num><heading class="fontsize10"><inline class="smallCaps">Approval required for certain changes in assumptions by certain single-employer plans subject to additional funding requirement</inline>.—</heading><clause class="fontsize10" id="ye9145e93-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><content>No actuarial assumption (other than the assumptions described in subsection (h)(3)) used to determine the current liability for a plan to which this subparagraph applies may be changed without the approval of the Secretary of the Treasury.</content></clause> <clause class="fontsize10" id="ye9145e94-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><heading class="fontsize10"><inline class="smallCaps">Plans to which subparagraph applies</inline>.—</heading><chapeau>This subparagraph shall apply to a plan only if—</chapeau><subclause class="fontsize10" id="ye9145e95-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658128"><num class="fontsize10" style="-uslm-lc:emspace2" value="I">“(I) </num><content>the plan is a CSEC plan,<page identifier="/us/stat/128/1106">128 STAT. 1106</page></content></subclause> <subclause class="fontsize10" id="ye9145e96-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658128"><num class="fontsize10" style="-uslm-lc:emspace2" value="II">“(II) </num><content>the aggregate unfunded vested benefits as of the close of the preceding plan year (as determined under section 4006(a)(3)(E)(iii)) of such plan and all other plans maintained by the contributing sponsors (as defined in section 4001(a)(13)) and members of such sponsors’ controlled groups (as defined in section 4001(a)(14)) which are covered by title IV (disregarding plans with no unfunded vested benefits) exceed $50,000,000, and</content></subclause> <subclause class="fontsize10" id="ye9145e97-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658128"><num class="fontsize10" style="-uslm-lc:emspace2" value="III">“(III) </num><content>the change in assumptions (determined after taking into account any changes in interest rate and mortality table) results in a decrease in the funding shortfall 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.</content></subclause> </clause> </subparagraph> </paragraph> <paragraph class="fontsize10" id="ye9145e98-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="6">“(6) </num><heading class="fontsize10"><inline class="smallCaps">Full funding</inline>.—</heading><chapeau>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 (e)) in excess of the full funding limitation—</chapeau><subparagraph class="fontsize10" id="ye9145e99-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><content>the funding standard account shall be credited with the amount of such excess, and</content></subparagraph> <subparagraph class="fontsize10" id="ye9145e9a-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><content>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.</content></subparagraph> </paragraph> <paragraph class="fontsize10" id="ye9145e9b-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="7">“(7) </num><heading class="fontsize10"><inline class="smallCaps">Full-funding limitation</inline>.—</heading><chapeau>For purposes of paragraph (6), the term ‘<term>full-funding limitation</term>’ means the excess (if any) of—</chapeau><subparagraph class="fontsize10" id="ye9145e9c-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><content>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</content></subparagraph> <subparagraph class="fontsize10" id="ye9145e9d-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><chapeau>the lesser of—</chapeau><clause class="fontsize10" id="ye9145e9e-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><content>the fair market value of the plan’s assets, or</content></clause> <clause class="fontsize10" id="ye9145e9f-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>the value of such assets determined under paragraph (2).</content></clause> </subparagraph> <subparagraph class="fontsize10" id="ye9145ea0-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="C">“(C) </num><heading class="fontsize10"><inline class="smallCaps">Minimum amount</inline>.—</heading><clause class="fontsize10" id="ye9145ea1-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><chapeau>In no event shall the full-funding limitation determined under subparagraph (A) be less than the excess (if any) of—</chapeau><subclause class="fontsize10" id="ye9145ea2-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658128"><num class="fontsize10" style="-uslm-lc:emspace2" value="I">“(I) </num><content>90 percent of the current liability (determined without regard to paragraph (4) of subsection (h)) of the plan (including the expected increase in such current liability due to benefits accruing during the plan year), over</content></subclause> <subclause class="fontsize10" id="ye91485b3-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658128"><num class="fontsize10" style="-uslm-lc:emspace2" value="II">“(II) </num><content>the value of the plan’s assets determined under paragraph (2).</content></subclause> </clause> <clause class="fontsize10" id="ye91485b4-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><heading class="fontsize10"><inline class="smallCaps">Assets</inline>.—</heading><content>For purposes of clause (i), assets shall not be reduced by any credit balance in the funding standard account.</content></clause> </subparagraph> </paragraph> <paragraph class="fontsize10" id="ye91485b5-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="8">“(8) </num><heading class="fontsize10"><inline class="smallCaps">Annual valuation</inline>.—</heading><subparagraph class="fontsize10" id="ye91485b6-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><sidenote>Regulations.</sidenote><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><content>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 <page identifier="/us/stat/128/1107">128 STAT. 1107</page> 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 of the Treasury.</content></subparagraph> <subparagraph class="fontsize10" id="ye91485b8-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><heading class="fontsize10"><inline class="smallCaps">Valuation date</inline>.—</heading><clause class="fontsize10" id="ye91485b9-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><heading class="fontsize10"><inline class="smallCaps">Current year</inline>.—</heading><content>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.</content></clause> <clause class="fontsize10" id="ye91485ba-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><heading class="fontsize10"><inline class="smallCaps">Use of prior year valuation</inline>.—</heading><content>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 100 percent of the plan’s current liability.</content></clause> <clause class="fontsize10" id="ye91485bb-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="iii">“(iii) </num><heading class="fontsize10"><inline class="smallCaps">Adjustments</inline>.—</heading><content>Information under clause (ii) shall, in accordance with regulations, be actuarially adjusted to reflect significant differences in participants.</content></clause> <clause class="fontsize10" id="ye91485bc-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="iv">“(iv) </num><heading class="fontsize10"><inline class="smallCaps">Limitation</inline>.—</heading><content>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.</content></clause> </subparagraph> </paragraph> <paragraph class="fontsize10" id="ye91485bd-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="9">“(9) </num><heading class="fontsize10"><inline class="smallCaps">Time when certain contributions deemed made</inline>.—</heading><chapeau>For purposes of this section, any contributions for a plan year made by an employer during the period—</chapeau><subparagraph class="fontsize10" id="ye91485be-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><content>beginning on the day after the last day of such plan year, and</content></subparagraph> <subparagraph class="fontsize10" id="ye91485bf-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><content>ending on the day which is 8½ months after the close of the plan year,</content></subparagraph> <continuation class="firstIndent1 fontsize10" id="xe91485c0-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122">shall be deemed to have been made on such last day.</continuation></paragraph> <paragraph class="fontsize10" id="ye91485c1-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="10">“(10) </num><heading class="fontsize10"><inline class="smallCaps">Anticipation of benefit increases effective in the future</inline>.—</heading><content>In determining projected benefits, the funding method of a collectively bargained CSEC plan described in section 413(a) of the Internal Revenue Code of 1986 shall anticipate benefit increases scheduled to take effect during the term of the collective bargaining agreement applicable to the plan.</content></paragraph> </subsection> <subsection class="firstIndent0 fontsize10" id="ye91485c2-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="d">“(d) </num><heading class="fontsize10"><inline class="smallCaps">Extension of Amortization Periods</inline>.—</heading><chapeau>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 the Treasury for a period of time (not in excess of 10 years) if such Secretary determines that such extension would carry out the purposes of this Act and provide adequate protection for participants under the plan and their beneficiaries, and if such Secretary determines that the failure to permit such extension would result in—</chapeau><paragraph class="fontsize10" id="ye91485c3-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="1">“(1) </num><content>a substantial risk to the voluntary continuation of the plan, or</content></paragraph> <paragraph class="fontsize10" id="ye91485c4-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="2">“(2) </num><content>a substantial curtailment of pension benefit levels or employee compensation.</content></paragraph> </subsection> <subsection class="firstIndent0 fontsize10" id="ye91485c5-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="e">“(e) </num><heading class="fontsize10"><inline class="smallCaps">Alternative Minimum Funding Standard</inline>.—</heading><paragraph class="fontsize10" id="ye91485c6-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="1">“(1) </num><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><content>A CSEC plan which uses a funding method that requires contributions in all years not less than <page identifier="/us/stat/128/1108">128 STAT. 1108</page> 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.</content></paragraph> <paragraph class="fontsize10" id="ye91485c7-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="2">“(2) </num><heading class="fontsize10"><inline class="smallCaps">Charges and credits to account</inline>.—</heading><chapeau>For a plan year the alternative minimum funding standard account shall be—</chapeau><subparagraph class="fontsize10" id="ye91485c8-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><chapeau>charged with the sum of—</chapeau><clause class="fontsize10" id="ye91485c9-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><content>the lesser of normal cost under the funding method used under the plan or normal cost determined under the unit credit method,</content></clause> <clause class="fontsize10" id="ye91485ca-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>the excess, if any, of the present value of accrued benefits under the plan over the fair market value of the assets, and</content></clause> <clause class="fontsize10" id="ye91485cb-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="iii">“(iii) </num><content>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</content></clause> </subparagraph> <subparagraph class="fontsize10" id="ye91485cc-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><content>credited with the amount considered contributed by the employer to or under the plan for the plan year.</content></subparagraph> </paragraph> <paragraph class="fontsize10" id="ye91485cd-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="3">“(3) </num><heading class="fontsize10"><inline class="smallCaps">Interest</inline>.—</heading><content>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.</content></paragraph> </subsection> <subsection class="firstIndent0 fontsize10" id="ye91485ce-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="f">“(f) </num><heading class="fontsize10"><inline class="smallCaps">Quarterly Contributions Required</inline>.—</heading><paragraph class="fontsize10" id="ye91485cf-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="1">“(1) </num><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><chapeau>If a CSEC plan which has a funded current liability percentage for the preceding plan year of less than 100 percent fails to pay the full amount of a required installment for the plan year, then the rate of interest charged to the funding standard account under subsection (b)(5) with respect to the amount of the underpayment for the period of the underpayment shall be equal to the greater of—</chapeau><subparagraph class="fontsize10" id="ye91485d0-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><content>175 percent of the Federal mid-term rate (as in effect under section 1274 of the Internal Revenue Code of 1986 for the 1st month of such plan year), or</content></subparagraph> <subparagraph class="fontsize10" id="ye91485d1-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><content>the rate of interest used under the plan in determining costs.</content></subparagraph> </paragraph> <paragraph class="fontsize10" id="ye91485d2-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="2">“(2) </num><heading class="fontsize10"><inline class="smallCaps">Amount of underpayment, period of underpayment</inline>.—</heading><chapeau>For purposes of paragraph (1)—</chapeau><subparagraph class="fontsize10" id="ye91485d3-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><heading class="fontsize10"><inline class="smallCaps">Amount</inline>.—</heading><chapeau>The amount of the underpayment shall be the excess of—</chapeau><clause class="fontsize10" id="ye91485d4-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><content>the required installment, over</content></clause> <clause class="fontsize10" id="ye91485d5-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>the amount (if any) of the installment contributed to or under the plan on or before the due date for the installment.</content></clause> </subparagraph> <subparagraph class="fontsize10" id="ye91485d6-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><heading class="fontsize10"><inline class="smallCaps">Period of underpayment</inline>.—</heading><content>The period for which interest is charged under this subsection with regard to any portion of the underpayment shall run from the due date for the installment to the date on which such portion is contributed to or under the plan (determined without regard to subsection (c)(9)).</content></subparagraph> <subparagraph class="fontsize10" id="ye91485d7-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="C">“(C) </num><heading class="fontsize10"><inline class="smallCaps">Order of crediting contributions</inline>.—</heading><content>For purposes of subparagraph (A)(ii), contributions shall be credited against unpaid required installments in the order in which such installments are required to be paid.</content></subparagraph> </paragraph> <paragraph class="fontsize10" id="ye91485d8-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="3">“(3) </num><heading class="fontsize10"><inline class="smallCaps">Number of required installments; due dates</inline>.—</heading><chapeau>For purposes of this subsection—<page identifier="/us/stat/128/1109">128 STAT. 1109</page></chapeau><subparagraph class="fontsize10" id="ye91485d9-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><heading class="fontsize10"><inline class="smallCaps">Payable in 4 installments</inline>.—</heading><content>There shall be 4 required installments for each plan year.</content></subparagraph> <subparagraph class="fontsize10" id="ye91485da-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><heading class="fontsize10"><inline class="smallCaps">Time for payment of installments</inline>.—</heading><content><?GPOvSpace 04?> <xhtml:table xmlns:xhtml="http://www.w3.org/1999/xhtml" class="Quoted fullWidth" style="border-collapse:collapse; border=0; -uslm-lc: 'c2,L0,tp0,p10,10/12,s150,xl150R'; "><xhtml:colgroup><xhtml:col role="stub" style="min-width: 212pt;"/> <xhtml:col role="reading" style="min-width: 212pt;"/> </xhtml:colgroup><xhtml:thead><xhtml:tr class="header" style="font-size:10pt;-uslm-lc:h1"> <xhtml:th style="min-width: 212.0pt; text-align:left; vertical-align:middle;">“In the case of the following required installments:</xhtml:th><xhtml:th style="min-width: 212.0pt; text-align:right; vertical-align:middle;">The due date is:</xhtml:th></xhtml:tr> </xhtml:thead><xhtml:tbody style="line-height:12pt; font-size:10pt;"><xhtml:tr style="-uslm-lc:I01"><xhtml:td leaders="yes" stubHierarchy="1" style=" text-align:left; vertical-align:top;"><inline>1st</inline></xhtml:td><xhtml:td style=" text-align:right; vertical-align:top;">April 15 </xhtml:td></xhtml:tr> <xhtml:tr style="-uslm-lc:I01"><xhtml:td leaders="yes" stubHierarchy="1" style=" text-align:left; vertical-align:top;"><inline>2nd</inline></xhtml:td><xhtml:td style=" text-align:right; vertical-align:top;">July 15 </xhtml:td></xhtml:tr> <xhtml:tr style="-uslm-lc:I01"><xhtml:td leaders="yes" stubHierarchy="1" style=" text-align:left; vertical-align:top;"><inline>3rd</inline></xhtml:td><xhtml:td style=" text-align:right; vertical-align:top;">October 15 </xhtml:td></xhtml:tr> <xhtml:tr style="-uslm-lc:I01"><xhtml:td leaders="yes" stubHierarchy="1" style=" text-align:left; vertical-align:top;"><inline>4th</inline></xhtml:td><xhtml:td style=" text-align:right; vertical-align:top;">January 15 of the following year.</xhtml:td></xhtml:tr> </xhtml:tbody></xhtml:table><?GPOvSpace 04?></content></subparagraph> </paragraph> <paragraph class="fontsize10" id="ye91485db-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="4">“(4) </num><heading class="fontsize10"><inline class="smallCaps">Amount of required installment</inline>.—</heading><chapeau>For purposes of this subsection—</chapeau><subparagraph class="fontsize10" id="ye91485dc-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><content>The amount of any required installment shall be 25 percent of the required annual payment.</content></subparagraph> <subparagraph class="fontsize10" id="ye91485dd-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><heading class="fontsize10"><inline class="smallCaps">Required annual payment</inline>.—</heading><chapeau>For purposes of subparagraph (A), the term ‘<term>required annual payment</term>’ means the lesser of—</chapeau><clause class="fontsize10" id="ye91485de-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><content>90 percent of the amount required to be contributed to or under the plan by the employer for the plan year under section 302 (without regard to any waiver under subsection (c) thereof), or</content></clause> <clause class="fontsize10" id="ye91485df-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>100 percent of the amount so required for the preceding plan year.</content></clause> <continuation class="firstIndent1 fontsize10" id="xe91485e0-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124">Clause (ii) shall not apply if the preceding plan year was not a year of 12 months.</continuation></subparagraph> </paragraph> <paragraph class="fontsize10" id="ye91485e1-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="5">“(5) </num><heading class="fontsize10"><inline class="smallCaps">Liquidity requirement</inline>.—</heading><subparagraph class="fontsize10" id="ye91485e2-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><sidenote>Applicability.</sidenote><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><content>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).</content></subparagraph> <subparagraph class="fontsize10" id="ye91485e4-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><heading class="fontsize10"><inline class="smallCaps">Plans to which paragraph applies</inline>.—</heading><chapeau>This paragraph shall apply to a CSEC plan other than a plan described in section 302(d)(6)(A) (as in effect on the day before the enactment of the Pension Protection Act of 2006) which—</chapeau><clause class="fontsize10" id="ye91485e5-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><content>is required to pay installments under this subsection for a plan year, and</content></clause> <clause class="fontsize10" id="ye91485e6-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>has a liquidity shortfall for any quarter during such plan year.</content></clause> </subparagraph> <subparagraph class="fontsize10" id="ye91485e7-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="C">“(C) </num><heading class="fontsize10"><inline class="smallCaps">Period of underpayment</inline>.—</heading><content>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.</content></subparagraph> <subparagraph class="fontsize10" id="ye91485e8-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="D">“(D) </num><heading class="fontsize10"><inline class="smallCaps">Limitation on increase</inline>.—</heading><content>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 <page identifier="/us/stat/128/1110">128 STAT. 1110</page> increase in current liability due to benefits accruing during the plan year) to 100 percent.</content></subparagraph> <subparagraph class="fontsize10" id="ye91485e9-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="E">“(E) </num><heading class="fontsize10"><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>For purposes of this paragraph—</chapeau><clause class="fontsize10" id="ye91485ea-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><heading class="fontsize10"><inline class="smallCaps">Liquidity shortfall</inline>.—</heading><content>The term ‘<term>liquidity shortfall</term>’ 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.</content></clause> <clause class="fontsize10" id="ye91485eb-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><heading class="fontsize10"><inline class="smallCaps">Base amount</inline>.—</heading><subclause class="fontsize10" id="ye91485ec-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658128"><num class="fontsize10" style="-uslm-lc:emspace2" value="I">“(I) </num><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><content>The term ‘<term>base amount</term>’ means, with respect to any quarter, an amount equal to 3 times the sum of the adjusted disbursements from the plan for the 12 months ending on the last day of such quarter.</content></subclause> <subclause class="fontsize10" id="ye91485ed-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658128"><num class="fontsize10" style="-uslm-lc:emspace2" value="II">“(II) </num><sidenote>Certification.Determination.</sidenote><heading class="fontsize10"><inline class="smallCaps">Special rule</inline>.—</heading><content>If the amount determined under subclause (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 of the Treasury 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.</content></subclause> </clause> <clause class="fontsize10" id="ye91485f0-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="iii">“(iii) </num><heading class="fontsize10"><inline class="smallCaps">Disbursements from the plan</inline>.—</heading><content>The term ‘<term>disbursements from the plan</term>’ means all disbursements from the trust, including purchases of annuities, payments of single sums and other benefits, and administrative expenses.</content></clause> <clause class="fontsize10" id="ye91485f1-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="iv">“(iv) </num><heading class="fontsize10"><inline class="smallCaps">Adjusted disbursements</inline>.—</heading><chapeau>The term ‘<term>adjusted disbursements</term>’ means disbursements from the plan reduced by the product of—</chapeau><subclause class="fontsize10" id="ye91485f2-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658128"><num class="fontsize10" style="-uslm-lc:emspace2" value="I">“(I) </num><content>the plan’s funded current liability percentage for the plan year, and</content></subclause> <subclause class="fontsize10" id="ye91485f3-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658128"><num class="fontsize10" style="-uslm-lc:emspace2" value="II">“(II) </num><content>the sum of the purchases of annuities, payments of single sums, and such other disbursements as the Secretary of the Treasury shall provide in regulations.</content></subclause> </clause> <clause class="fontsize10" id="ye91485f4-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="v">“(v) </num><heading class="fontsize10"><inline class="smallCaps">Liquid assets</inline>.—</heading><content>The term ‘<term>liquid assets</term>’ means cash, marketable securities and such other assets as specified by the Secretary of the Treasury in regulations.</content></clause> <clause class="fontsize10" id="ye91485f5-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="vi">“(vi) </num><heading class="fontsize10"><inline class="smallCaps">Quarter</inline>.—</heading><content>The term ‘<term>quarter</term>’ means, with respect to any required installment, the 3-month period preceding the month in which the due date for such installment occurs.</content></clause> </subparagraph> <subparagraph class="fontsize10" id="ye91485f6-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="F">“(F) </num><heading class="fontsize10"><inline class="smallCaps">Regulations</inline>.—</heading><content>The Secretary of the Treasury may prescribe such regulations as are necessary to carry out this paragraph.</content></subparagraph> </paragraph> <paragraph class="fontsize10" id="ye91485f7-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="6">“(6) </num><sidenote>Applicability.</sidenote><heading class="fontsize10"><inline class="smallCaps">Fiscal years and short years</inline>.—</heading><subparagraph class="fontsize10" id="ye914ad09-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><heading class="fontsize10"><inline class="smallCaps">Fiscal years</inline>.—</heading><content>In applying this subsection to a plan year beginning on any date other than January 1, there shall be substituted for the months specified in this subsection, the months which correspond thereto.<page identifier="/us/stat/128/1111">128 STAT. 1111</page></content></subparagraph> <subparagraph class="fontsize10" id="ye914ad0a-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><sidenote>Regulations.</sidenote><heading class="fontsize10"><inline class="smallCaps">Short plan year</inline>.—</heading><content>This subsection shall be applied to plan years of less than 12 months in accordance with regulations prescribed by the Secretary of the Treasury.</content></subparagraph> </paragraph> </subsection> <subsection class="firstIndent0 fontsize10" id="ye914ad0c-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="g">“(g) </num><heading class="fontsize10"><inline class="smallCaps">Imposition of Lien Where Failure To Make Required Contributions</inline>.—</heading><paragraph class="fontsize10" id="ye914ad0d-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="1">“(1) </num><sidenote>Applicability.</sidenote><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><chapeau>In the case of a plan to which this section applies, if—</chapeau><subparagraph class="fontsize10" id="ye914ad0f-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><content>any person fails to make a required installment under subsection (f) or any other payment required under this section before the due date for such installment or other payment, and</content></subparagraph> <subparagraph class="fontsize10" id="ye914ad10-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><content>the unpaid balance of such installment or other payment (including interest), when added to the aggregate unpaid balance of all preceding such installments or other payments for which payment was not made before the due date (including interest), exceeds $1,000,000,</content></subparagraph> <continuation class="firstIndent1 fontsize10" id="xe914ad11-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122">then there shall be a lien in favor of the plan in the amount determined under paragraph (3) upon all property and rights to property, whether real or personal, belonging to such person and any other person who is a member of the same controlled group of which such person is a member.</continuation></paragraph> <paragraph class="fontsize10" id="ye914ad12-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="2">“(2) </num><heading class="fontsize10"><inline class="smallCaps">Plans to which subsection applies</inline>.—</heading><content>This subsection shall apply to a CSEC plan for any plan year for which the funded current liability percentage of such plan is less than 100 percent. This subsection shall not apply to any plan to which section 4021 does not apply (as such section is in effect on the date of the enactment of the Retirement Protection Act of 1994).</content></paragraph> <paragraph class="fontsize10" id="ye914ad13-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="3">“(3) </num><heading class="fontsize10"><inline class="smallCaps">Amount of lien</inline>.—</heading><chapeau>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)—</chapeau><subparagraph class="fontsize10" id="ye914ad14-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><content>for plan years beginning after 1987, and</content></subparagraph> <subparagraph class="fontsize10" id="ye914ad15-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><content>for which payment has not been made before the due date.</content></subparagraph> </paragraph> <paragraph class="fontsize10" id="ye914ad16-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="4">“(4) </num><heading class="fontsize10"><inline class="smallCaps">Notice of failure; lien</inline>.—</heading><subparagraph class="fontsize10" id="ye914ad17-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><heading class="fontsize10"><inline class="smallCaps">Notice of failure</inline>.—</heading><content>A person committing a failure described in paragraph (1) shall notify the Pension Benefit Guaranty Corporation of such failure within 10 days of the due date for the required installment or other payment.</content></subparagraph> <subparagraph class="fontsize10" id="ye914ad18-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><heading class="fontsize10"><inline class="smallCaps">Period of lien</inline>.—</heading><content>The lien imposed by paragraph (1) shall arise on the due date for the required installment or other payment and shall continue until the last day of the first plan year in which the plan ceases to be described in paragraph (1)(B). Such lien shall continue to run without regard to whether such plan continues to be described in paragraph (2) during the period referred to in the preceding sentence.</content></subparagraph> <subparagraph class="fontsize10" id="ye914ad19-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="C">“(C) </num><heading class="fontsize10"><inline class="smallCaps">Certain rules to apply</inline>.—</heading><content>Any amount with respect to which a lien is imposed under paragraph (1) shall be treated as taxes due and owing the United States and rules similar to the rules of subsections (c), (d), and (e) of section 4068 shall apply with respect to a lien imposed by subsection (a) and the amount with respect to such lien.<page identifier="/us/stat/128/1112">128 STAT. 1112</page></content></subparagraph> </paragraph> <paragraph class="fontsize10" id="ye914ad1a-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="5">“(5) </num><heading class="fontsize10"><inline class="smallCaps">Enforcement</inline>.—</heading><content>Any lien created under paragraph (1) may be perfected and enforced only by the Pension Benefit Guaranty Corporation, or at the direction of the Pension Benefit Guaranty Corporation, by any contributing employer (or any member of the controlled group of the contributing employer).</content></paragraph> <paragraph class="fontsize10" id="ye914ad1b-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="6">“(6) </num><heading class="fontsize10"><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>For purposes of this subsection—</chapeau><subparagraph class="fontsize10" id="ye914ad1c-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><heading class="fontsize10"><inline class="smallCaps">Due date; required installment</inline>.—</heading><content>The terms ‘due date’ and ‘required installment’ have the meanings given such terms by subsection (f), except that in the case of a payment other than a required installment, the due date shall be the date such payment is required to be made under this section.</content></subparagraph> <subparagraph class="fontsize10" id="ye914ad1d-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><heading class="fontsize10"><inline class="smallCaps">Controlled group</inline>.—</heading><content>The term ‘<term>controlled group</term>’ means any group treated as a single employer under subsections (b), (c), (m), and (o) of section 414 of the Internal Revenue Code of 1986.</content></subparagraph> </paragraph> </subsection> <subsection class="firstIndent0 fontsize10" id="ye914ad1e-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="h">“(h) </num><heading class="fontsize10"><inline class="smallCaps">Current Liability</inline>.—</heading><chapeau>For purposes of this section—</chapeau><paragraph class="fontsize10" id="ye914ad1f-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="1">“(1) </num><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><content>The term ‘<term>current liability</term>’ means all liabilities to employees and their beneficiaries under the plan.</content></paragraph> <paragraph class="fontsize10" id="ye914ad20-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="2">“(2) </num><heading class="fontsize10"><inline class="smallCaps">Treatment of unpredictable contingent event benefits</inline>.—</heading><subparagraph class="fontsize10" id="ye914ad21-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><content>For purposes of paragraph (1), any unpredictable contingent event benefit shall not be taken into account until the event on which the benefit is contingent occurs.</content></subparagraph> <subparagraph class="fontsize10" id="ye914ad22-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><heading class="fontsize10"><inline class="smallCaps">Unpredictable contingent event benefit</inline>.—</heading><chapeau>The term ‘<term>unpredictable contingent event benefit</term>’ means any benefit contingent on an event other than—</chapeau><clause class="fontsize10" id="ye914ad23-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><content>age, service, compensation, death, or disability, or</content></clause> <clause class="fontsize10" id="ye914ad24-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>an event which is reasonably and reliably predictable (as determined by the Secretary of the Treasury).</content></clause> </subparagraph> </paragraph> <paragraph class="fontsize10" id="ye914ad25-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="3">“(3) </num><heading class="fontsize10"><inline class="smallCaps">Interest rate and mortality assumptions used</inline>.—</heading><subparagraph class="fontsize10" id="ye914ad26-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><heading class="fontsize10"><inline class="smallCaps">Interest rate</inline>.—</heading><content>The rate of interest used to determine current liability under this section shall be the third segment rate determined under section 303(h)(2)(C).</content></subparagraph> <subparagraph class="fontsize10" id="ye914ad27-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><heading class="fontsize10"><inline class="smallCaps">Mortality tables</inline>.—</heading><clause class="fontsize10" id="ye914ad28-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><heading class="fontsize10"><inline class="smallCaps">Secretarial authority</inline>.—</heading><content>The Secretary of the Treasury may by regulation prescribe 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 of the Treasury shall take into account results of available independent studies of mortality of individuals covered by pension plans.</content></clause> <clause class="fontsize10" id="ye914ad29-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><sidenote>Regulations.</sidenote><heading class="fontsize10"><inline class="smallCaps">Periodic review</inline>.—</heading><content>The Secretary of the Treasury shall periodically (at least every 5 years) review any tables in effect under this subsection and shall, to the extent the Secretary of the Treasury determines necessary, by regulation update the tables to reflect the actual experience of pension plans and projected trends in such experience.</content></clause> </subparagraph> <subparagraph class="fontsize10" id="ye914ad2b-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="C">“(C) </num><heading class="fontsize10"><inline class="smallCaps">Separate mortality tables for the disabled</inline>.—</heading><chapeau>Notwithstanding subparagraph (B)—<page identifier="/us/stat/128/1113">128 STAT. 1113</page></chapeau><clause class="fontsize10" id="ye914ad2c-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><content>In the case of plan years beginning after December 31, 1995, the Secretary of the Treasury shall establish mortality tables which may be used (in lieu of the tables under subparagraph (B)) to determine current liability under this subsection for individuals who are entitled to benefits under the plan on account of disability. The Secretary of the Treasury 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.</content></clause> <clause class="fontsize10" id="ye914ad2d-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><sidenote>Applicability.</sidenote><heading class="fontsize10"><inline class="smallCaps">Special rule for disabilities occurring after 1994</inline>.—</heading><content>In the case of disabilities occurring in plan years beginning after December 31, 1994, the tables under clause (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.</content></clause> </subparagraph> </paragraph> <paragraph class="fontsize10" id="ye914ad2f-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="4">“(4) </num><heading class="fontsize10"><inline class="smallCaps">Certain service disregarded</inline>.—</heading><subparagraph class="fontsize10" id="ye914ad30-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><sidenote>Applicability.</sidenote><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><content>In the case of a participant to whom this paragraph 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.</content></subparagraph> <subparagraph class="fontsize10" id="ye914ad32-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><heading class="fontsize10"><inline class="smallCaps">Applicable percentage</inline>.—</heading><content>For purposes of this subparagraph, the applicable percentage shall be determined as follows:<?GPOvSpace 04?> <xhtml:table xmlns:xhtml="http://www.w3.org/1999/xhtml" class="Quoted fullWidth" style="border-collapse:collapse; border=0; -uslm-lc: 'c2,L0,tp0,p10,10/12,s150,27'; "><xhtml:colgroup><xhtml:col role="stub" style="min-width: 286pt;"/> <xhtml:col role="figure" style="width:139pt ; max-width:139pt;"/> </xhtml:colgroup><xhtml:thead><xhtml:tr class="header" style="font-size:10pt;-uslm-lc:h1"> <xhtml:th style="min-width: 286.0pt; text-align:left; vertical-align:middle;">“If the years of participation are:</xhtml:th><xhtml:th style="width:139.0pt ; max-width:139.0pt; text-align:right; vertical-align:middle;">The applicable percentage is:</xhtml:th></xhtml:tr> </xhtml:thead><xhtml:tbody style="line-height:12pt; font-size:10pt;"><xhtml:tr style="-uslm-lc:I01"><xhtml:td leaderAlign="bottomLine" leaders="yes" stubHierarchy="1" style=" text-align:left; vertical-align:top;"><inline>1</inline></xhtml:td><xhtml:td leaders="no" style=" text-align:right; vertical-align:bottom;">20</xhtml:td></xhtml:tr> <xhtml:tr style="-uslm-lc:I01"><xhtml:td leaderAlign="bottomLine" leaders="yes" stubHierarchy="1" style=" text-align:left; vertical-align:top;"><inline>2</inline></xhtml:td><xhtml:td leaders="no" style=" text-align:right; vertical-align:bottom;">40</xhtml:td></xhtml:tr> <xhtml:tr style="-uslm-lc:I01"><xhtml:td leaderAlign="bottomLine" leaders="yes" stubHierarchy="1" style=" text-align:left; vertical-align:top;"><inline>3</inline></xhtml:td><xhtml:td leaders="no" style=" text-align:right; vertical-align:bottom;">60</xhtml:td></xhtml:tr> <xhtml:tr style="-uslm-lc:I01"><xhtml:td leaderAlign="bottomLine" leaders="yes" stubHierarchy="1" style=" text-align:left; vertical-align:top;"><inline>4</inline></xhtml:td><xhtml:td leaders="no" style=" text-align:right; vertical-align:bottom;">80</xhtml:td></xhtml:tr> <xhtml:tr style="-uslm-lc:I01"><xhtml:td leaderAlign="bottomLine" leaders="yes" stubHierarchy="1" style=" text-align:left; vertical-align:top;"><inline>5 or more</inline></xhtml:td><xhtml:td leaders="no" style=" text-align:right; vertical-align:bottom;">100.</xhtml:td></xhtml:tr> </xhtml:tbody></xhtml:table><?GPOvSpace 04?></content></subparagraph> <subparagraph class="fontsize10" id="ye914ad33-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="C">“(C) </num><heading class="fontsize10"><inline class="smallCaps">Participants to whom paragraph applies</inline>.—</heading><chapeau>This subparagraph shall apply to any participant who, at the time of becoming a participant—</chapeau><clause class="fontsize10" id="ye914ad34-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><content>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,</content></clause> <clause class="fontsize10" id="ye914ad35-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>who first becomes a participant under the plan in a plan year beginning after December 31, 1987, and</content></clause> <clause class="fontsize10" id="ye914ad36-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="iii">“(iii) </num><content>has years of service greater than the minimum years of service necessary for eligibility to participate in the plan.</content></clause> </subparagraph> <subparagraph class="fontsize10" id="ye914ad37-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="D">“(D) </num><heading class="fontsize10"><inline class="smallCaps">Election</inline>.—</heading><content>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 of the Treasury.<page identifier="/us/stat/128/1114">128 STAT. 1114</page></content></subparagraph> </paragraph> </subsection> <subsection class="firstIndent0 fontsize10" id="ye914ad38-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><sidenote>Definition.</sidenote><heading class="fontsize10"><inline class="smallCaps">Funded Current Liability Percentage</inline>.—</heading><chapeau>For purposes of this section, the term ‘<term>funded current liability percentage</term>’ means, with respect to any plan year, the percentage which—</chapeau><paragraph class="fontsize10" id="ye914ad3a-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="1">“(1) </num><content>the value of the plan’s assets determined under subsection (c)(2), is of</content></paragraph> <paragraph class="fontsize10" id="ye914ad3b-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="2">“(2) </num><content>the current liability under the plan.</content></paragraph> </subsection> <subsection class="firstIndent0 fontsize10" id="ye914ad3c-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="j">“(j) </num><heading class="fontsize10"><inline class="smallCaps">Funding Restoration Status</inline>.—</heading><chapeau>Notwithstanding any other provisions of this section—</chapeau><paragraph class="fontsize10" id="ye914ad3d-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="1">“(1) </num><heading class="fontsize10"><inline class="smallCaps">Normal cost payment</inline>.—</heading><subparagraph class="fontsize10" id="ye914ad3e-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><sidenote>Definitions.</sidenote><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><chapeau>In the case of a CSEC plan that is in funding restoration status for a plan year, for purposes of section 302, the term ‘<term>accumulated funding deficiency</term>’ means, for such plan year, the greater of—</chapeau><clause class="fontsize10" id="ye914ad40-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><content>the amount described in subsection (a), or</content></clause> <clause class="fontsize10" id="ye914ad41-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>the excess of the normal cost of the plan for the plan year over the amount actually contributed to or under the plan for the plan year.</content></clause> </subparagraph> <subparagraph class="fontsize10" id="ye914ad42-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><heading class="fontsize10"><inline class="smallCaps">Normal cost</inline>.—</heading><content>In the case of a CSEC plan that uses a spread gain funding method, for purposes of this subsection, the term ‘<term>normal cost</term>’ means normal cost as determined under the entry age normal funding method.</content></subparagraph> </paragraph> <paragraph class="fontsize10" id="ye914ad43-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="2">“(2) </num><heading class="fontsize10"><inline class="smallCaps">Plan amendments</inline>.—</heading><content>In the case of a CSEC plan that is in funding restoration status for a plan year, no amendment to such plan may take effect during such plan year if such amendment has the effect of increasing liabilities of the plan by means of increases in benefits, establishment of new benefits, changing the rate of benefit accrual, or changing the rate at which benefits become nonforfeitable. This paragraph shall not apply to any plan amendment that is required to comply with any applicable <sidenote>Termination date.</sidenote>law. This paragraph shall cease to apply with respect to any plan year, effective as of the first day of the plan year (or if later, the effective date of the amendment) upon payment by the plan sponsor of a contribution to the plan (in addition to any contribution required under this section without regard to this paragraph) in an amount equal to the increase in the funding liability of the plan attributable to the plan amendment.</content></paragraph> <paragraph class="fontsize10" id="ye914ad45-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="3">“(3) </num><sidenote>Deadline.Certification.</sidenote><heading class="fontsize10"><inline class="smallCaps">Funding restoration plan</inline>.—</heading><content>The sponsor of a CSEC plan shall establish a written funding restoration plan within 180 days of the receipt by the plan sponsor of a certification from the plan actuary that the plan is in funding restoration status for a plan year. Such funding restoration plan shall consist of actions that are calculated, based on reasonably anticipated experience and reasonable actuarial assumptions, to increase the plan’s funded percentage to 100 percent over a period that is not longer than the greater of 7 years or the shortest amount of time practicable. Such funding restoration plan shall take into account contributions required under this section (without regard to this paragraph). If a plan remains in funding restoration status for 2 or more years, such funding restoration plan shall be updated each year after the 1st such year within 180 days of receipt by the plan sponsor of a certification from the plan actuary that the plan remains in funding restoration status for the plan year.</content></paragraph> <paragraph class="fontsize10" id="ye914d358-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="4">“(4) </num><sidenote>Deadline.</sidenote><heading class="fontsize10"><inline class="smallCaps">Annual certification by plan actuary</inline>.—</heading><chapeau>Not later than the 90th day of each plan year of a CSEC plan, the plan actuary shall certify to the plan sponsor whether or not <page identifier="/us/stat/128/1115">128 STAT. 1115</page> the plan is in funding restoration status for the plan year, based on the plan’s funded percentage as of the beginning of the plan year. For this purpose, the actuary may conclusively rely on an estimate of—</chapeau><subparagraph class="fontsize10" id="ye914d35a-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><content>the plan’s funding liability, based on the funding liability of the plan for the preceding plan year and on reasonable actuarial estimates, assumptions, and methods, and</content></subparagraph> <subparagraph class="fontsize10" id="ye914d35b-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><content>the amount of any contributions reasonably anticipated to be made for the preceding plan year.</content></subparagraph> <continuation class="firstIndent1 fontsize10" id="xe914d35c-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122">Contributions described in subparagraph (B) shall be taken into account in determining the plan’s funded percentage as of the beginning of the plan year.</continuation></paragraph> <paragraph class="fontsize10" id="ye914d35d-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="5">“(5) </num><heading class="fontsize10"><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>For purposes of this subsection—</chapeau><subparagraph class="fontsize10" id="ye914d35e-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><heading class="fontsize10"><inline class="smallCaps">Funding restoration status</inline>.—</heading><content>A CSEC plan shall be treated as in funding restoration status for a plan year if the plan’s funded percentage as of the beginning of such plan year is less than 80 percent.</content></subparagraph> <subparagraph class="fontsize10" id="ye914d35f-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><heading class="fontsize10"><inline class="smallCaps">Funded percentage</inline>.—</heading><chapeau>The term ‘<term>funded percentage</term>’ means the ratio (expressed as a percentage) which—</chapeau><clause class="fontsize10" id="ye914d360-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><content>the value of plan assets (as determined under subsection (c)(2)), bears to</content></clause> <clause class="fontsize10" id="ye914d361-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>the plan’s funding liability.</content></clause> </subparagraph> <subparagraph class="fontsize10" id="ye914d362-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="C">“(C) </num><heading class="fontsize10"><inline class="smallCaps">Funding liability</inline>.—</heading><content>The term ‘<term>funding liability</term>’ for a plan year means the present value of all benefits accrued or earned under the plan as of the beginning of the plan year, based on the assumptions used by the plan pursuant to this section, including the interest rate described in subsection (b)(5)(A) (without regard to subsection (b)(5)(B)).</content></subparagraph> <subparagraph class="fontsize10" id="ye914d363-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="D">“(D) </num><heading class="fontsize10"><inline class="smallCaps">Spread gain funding method</inline>.—</heading><content>The term ‘<term>spread gain funding method</term>’ has the meaning given such term under rules and forms issued by the Secretary of the Treasury.”</content></subparagraph> </paragraph> </subsection> </section> </quotedContent>.</content></subsection> <subsection class="firstIndent0 fontsize10" id="ye914d364-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/b" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="b">(b) </num><heading class="fontsize10"><inline class="smallCaps">Separate Rules for CSEC Plans</inline>.—</heading><paragraph class="fontsize10" id="ye914d365-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/b/1" role="instruction" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="1">(1) </num><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><content>Paragraph (2) of section 302(a) of the Employee Retirement Income Security Act of 1974 (<ref href="/us/usc/t29/s1082/a">29 U.S.C. 1082(a)</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="delete">striking</amendingAction> “<quotedText>and</quotedText>” at the end of subparagraph (B), by <amendingAction type="delete">striking</amendingAction> the period at the end of subparagraph (C) and <amendingAction type="insert">inserting</amendingAction> “<quotedText>, and</quotedText>”, and by <amendingAction type="insert">inserting</amendingAction> at the end thereof the following new subparagraph:<quotedContent><subparagraph class="fontsize10" id="ye914d366-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="D">“(D) </num><content>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 306 as of the end of the plan year.”</content></subparagraph> </quotedContent>.</content></paragraph> <paragraph class="fontsize10" id="ye914d367-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/b/2" role="instruction" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="2">(2) </num><heading class="fontsize10"><inline class="smallCaps">Conforming amendments</inline>.—</heading><chapeau>Section 302 of the Employee Retirement Income Security Act of 1974 (<ref href="/us/usc/t29/s1082">29 U.S.C. 1082</ref>) <amendingAction type="amend">is amended</amendingAction>—</chapeau><subparagraph class="fontsize10" id="ye914d368-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/b/2/A" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">(A) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>multiemployer plan</quotedText>” 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 <amendingAction type="insert">inserting</amendingAction> “<quotedText>multiemployer plan or a CSEC plan</quotedText>”,</content></subparagraph> <subparagraph class="fontsize10" id="ye914d369-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/b/2/B" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">(B) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>303(j)</quotedText>” in paragraph (1) of subsection (b) and <amendingAction type="insert">inserting</amendingAction> “<quotedText>303(j) or under section 306(f)</quotedText>”,</content></subparagraph> <subparagraph class="fontsize10" id="ye914d36a-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/b/2/C" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="C">(C)</num><clause class="inline" id="ye914d36b-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/b/2/C/i"><num value="i">(i) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>and</quotedText>” at the end of clause (i) of subsection (c)(1)(B),<page identifier="/us/stat/128/1116">128 STAT. 1116</page></content></clause> <clause class="indentUp0 fontsize10" id="ye914d36c-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/b/2/C/ii" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">(ii) </num><content>by <amendingAction type="delete">striking</amendingAction> the period at the end of clause (ii) of subsection (c)(1)(B), and <amendingAction type="insert">inserting</amendingAction> “<quotedText>, and</quotedText>”, and</content></clause> <clause class="indentUp0 fontsize10" id="ye914d36d-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/b/2/C/iii" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="iii">(iii) </num><content>by <amendingAction type="insert">inserting</amendingAction> the following new clause after clause (ii) of subsection (c)(1)(B):<quotedContent><subsection class="indentUp1 fontsize10" id="ye914d36e-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="iii">“(iii)</num><content> in the case of a CSEC plan, the funding standard account shall be credited under section 306(b)(3)(C) with the amount of the waived funding deficiency and such amount shall be amortized as required under section 306(b)(2)(C).”</content></subsection> </quotedContent>,</content></clause> </subparagraph> <subparagraph class="fontsize10" id="ye914d36f-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/b/2/D" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="D">(D) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>under paragraph (1)</quotedText>” in clause (i) of subsection (c)(4)(A) and <amendingAction type="insert">inserting</amendingAction> “<quotedText>under paragraph (1) or for granting an extension under section 306(d)</quotedText>”,</content></subparagraph> <subparagraph class="fontsize10" id="ye914d370-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/b/2/E" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="E">(E) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>waiver under this subsection</quotedText>” in subparagraph (B) of subsection (c)(4) and <amendingAction type="insert">inserting</amendingAction> “<quotedText>waiver under this subsection or an extension under 306(d)</quotedText>”,</content></subparagraph> <subparagraph class="fontsize10" id="ye914d371-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/b/2/F" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="F">(F) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>waiver or modification</quotedText>” in subclause (I) of subsection (c)(4)(B)(i) and <amendingAction type="insert">inserting</amendingAction> “<quotedText>waiver, modification, or extension</quotedText>”,</content></subparagraph> <subparagraph class="fontsize10" id="ye914d372-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/b/2/G" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="G">(G) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>waivers</quotedText>” in the heading of subsection (c)(4)(C) and of clause (ii) of subsection (c)(4)(C) and <amendingAction type="insert">inserting</amendingAction> “<quotedText>waivers or extensions</quotedText>”,</content></subparagraph> <subparagraph class="fontsize10" id="ye914d373-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/b/2/H" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="H">(H) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>section 304(d)</quotedText>” in subparagraph (A) of subsection (c)(7) and in paragraph (2) of subsection (d) and <amendingAction type="insert">inserting</amendingAction> “<quotedText>section 304(d) or section 306(d)</quotedText>”,</content></subparagraph> <subparagraph class="fontsize10" id="ye914d374-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/b/2/I" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="I">(I) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>and</quotedText>” at the end of subclause (I) of subsection (c)(4)(C)(i) and <amendingAction type="add">adding</amendingAction> “<quotedText>or the accumulated funding deficiency under section 306, whichever is applicable,</quotedText>”,</content></subparagraph> <subparagraph class="fontsize10" id="ye914d375-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/b/2/J" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="J">(J) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>303(e)(2),</quotedText>” in subclause (II) of subsection (c)(4)(C)(i) and <amendingAction type="insert">inserting</amendingAction> “<quotedText>303(e)(2) or 306(b)(2)(C), whichever is applicable, and</quotedText>”,</content></subparagraph> <subparagraph class="fontsize10" id="ye914d376-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/b/2/K" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="K">(K) </num><content>by <amendingAction type="add">adding</amendingAction> immediately after subclause (II) of subsection (c)(4)(C)(i) the following new subclause:<quotedContent><subclause class="indentUp2 fontsize10" id="ye914fa87-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658128"><num class="fontsize10" style="-uslm-lc:emspace2" value="III">“(III) </num><content>the total amounts not paid by reason of an extension in effect under section 306(d),”</content></subclause> </quotedContent>,</content></subparagraph> <subparagraph class="fontsize10" id="ye914fa88-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/b/2/L" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="L">(L) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>for waivers of</quotedText>” in clause (ii) of subsection (c)(4)(C) and <amendingAction type="insert">inserting</amendingAction> “<quotedText>for waivers or extensions with respect to</quotedText>”, and</content></subparagraph> <subparagraph class="fontsize10" id="ye914fa89-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/b/2/M" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="M">(M) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>single-employer plan</quotedText>” in subparagraph (A) of subsection (a)(2) and in clause (i) of subsection (c)(1)(B) and <amendingAction type="insert">inserting</amendingAction> “<quotedText>single-employer plan (other than a CSEC plan)</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="fontsize10" id="ye914fa8a-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/b/3" role="instruction" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="3">(3) </num><heading class="fontsize10"><inline class="smallCaps">Benefit restrictions</inline>.—</heading><content>Subsection (g) of section 206 of the Employee Retirement Income Security Act of 1974 (<ref href="/us/usc/t29/s1056">29 U.S.C. 1056</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end thereof the following new paragraph:<quotedContent><paragraph class="indentUp0 fontsize10" id="ye914fa8b-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="12">“(12) </num><heading class="fontsize10"><inline class="smallCaps">CSEC plans</inline>.—</heading><content>This subsection shall not apply to a CSEC plan (as defined in section 210(f)).”</content></paragraph> </quotedContent>.</content></paragraph> <paragraph class="fontsize10" id="ye914fa8c-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/b/4" role="instruction" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="4">(4) </num><heading class="fontsize10"><inline class="smallCaps">Benefit increases</inline>.—</heading><content>Paragraph (3) of section 204(i) of the Employee Retirement Income Security Act of 1974 (<ref href="/us/usc/t29/s1054/i">29 U.S.C. 1054(i)</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="delete">striking</amendingAction> “<quotedText>multiemployer plans</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>multiemployer plans or CSEC plans</quotedText>”.</content></paragraph> <paragraph class="fontsize10" id="ye914fa8d-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/b/5" role="instruction" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="5">(5) </num><heading class="fontsize10"><inline class="smallCaps">Section 103</inline>.—</heading><content>Subparagraph (B) of section 103(d)(8) of the Employee Retirement Income Security Act of 1974 (<ref href="/us/usc/t29/s1023/d/8">29 U.S.C. 1023(d)(8)</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="delete">striking</amendingAction> “<quotedText>303(h) and 304(c)(3)</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>303(h), 304(c)(3), and 306(c)(3)</quotedText>”.<page identifier="/us/stat/128/1117">128 STAT. 1117</page></content></paragraph> <paragraph class="fontsize10" id="ye914fa8e-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/b/6" role="instruction" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="6">(6) </num><heading class="fontsize10"><inline class="smallCaps">Section 502</inline>.—</heading><chapeau>Subsection (c) of section 502 of the Employee Retirement Income Security Act of <sidenote><ref href="/us/usc/t29/s1132">29 USC 1132</ref>.</sidenote>1974 <amendingAction type="amend">is amended</amendingAction>—</chapeau><subparagraph class="fontsize10" id="ye914fa90-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/b/6/A" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">(A) </num><content>by <amendingAction type="redesignate">redesignating</amendingAction> the last paragraph as paragraph (11), and</content></subparagraph> <subparagraph class="fontsize10" id="ye914fa91-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/b/6/B" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">(B) </num><content>by <amendingAction type="add">adding</amendingAction> at the end the following new paragraph:<quotedContent><paragraph class="indentDown1 fontsize10" id="ye914fa92-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="12">“(12) </num><content>The Secretary may assess a civil penalty against any sponsor of a CSEC plan of up to $100 a day from the date of the plan sponsor’s failure to comply with the requirements of section 306(j)(3) to establish or update a funding restoration plan.”</content></paragraph> </quotedContent>.</content></subparagraph> </paragraph> <paragraph class="fontsize10" id="ye914fa93-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/b/7" role="instruction" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="7">(7) </num><heading class="fontsize10"><inline class="smallCaps">Section 4003</inline>.—</heading><content>Subparagraph (B) of section 4003(e)(1) of the Employee Retirement Income Security Act of 1974 (<ref href="/us/usc/t29/s1303/e/1">29 U.S.C. 1303(e)(1)</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="delete">striking</amendingAction> “<quotedText>303(k)(1)(A) and (B) of this Act or section 430(k)(1)(A) and (B) of the Internal Revenue Code of 1986</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>303(k)(1)(A) and (B) or 306(g)(1)(A) and (B) of this Act or section 430(k)(1)(A) and (B) or 433(g)(1)(A) and (B) of the Internal Revenue Code of 1986</quotedText>”.</content></paragraph> <paragraph class="fontsize10" id="ye914fa94-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/b/8" role="instruction" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="8">(8) </num><heading class="fontsize10"><inline class="smallCaps">Section 4010</inline>.—</heading><content>Paragraph (2) of section 4010(b) of the Employee Retirement Income Security Act of 1974 (<ref href="/us/usc/t29/s1310/b">29 U.S.C. 1310(b)</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="delete">striking</amendingAction> “<quotedText>303(k)(1)(A) and (B) of this Act or section 430(k)(1)(A) and (B) of the Internal Revenue Code of 1986</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>303(k)(1)(A) and (B) or 306(g)(1)(A) and (B) of this Act or section 430(k)(1)(A) and (B) or 433(g)(1)(A) and (B) of the Internal Revenue Code of 1986</quotedText>”.</content></paragraph> <paragraph class="fontsize10" id="ye914fa95-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s102/b/9" role="instruction" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="9">(9) </num><heading class="fontsize10"><inline class="smallCaps">Section 4071</inline>.—</heading><content>Section 4071 of the Employee Retirement Income Security Act of 1974 (<ref href="/us/usc/t29/s1371">29 U.S.C. 1371</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="delete">striking</amendingAction> “<quotedText>section 303(k)(4)</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>section 303(k)(4) or 306(g)(4)</quotedText>”.</content></paragraph> </subsection> </section> <section id="d355206e2398" identifier="/us/pl/113/97/tI/s103" style="-uslm-lc:I658143"><num class="fontsize12" value="103">SEC. 103. </num><heading>ELECTIONS.</heading><subsection class="firstIndent0 fontsize10" id="ye915bde6-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s103/a" role="instruction" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="a">(a) </num><heading class="fontsize10"><inline class="smallCaps">Election Not To Be Treated as a CSEC Plan</inline>.—</heading><content>Subsection (f) of section 210 of the Employee Retirement Income Security Act of 1974, as added by section 101, <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following new paragraph:<quotedContent><paragraph class="fontsize10" id="ye915bde7-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="3">“(3) </num><heading class="fontsize10"><inline class="smallCaps">Election</inline>.—</heading><subparagraph class="fontsize10" id="ye915bde8-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><sidenote>Deadline.</sidenote><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><content>If a plan falls within the definition of a CSEC plan under this subsection (without regard to this paragraph), such plan shall be a CSEC plan unless the plan sponsor elects not later than the close of the first plan year of the plan beginning after December 31, 2013, not to be treated as a CSEC plan. An election under the preceding sentence shall take effect for such plan year and, once made, may be revoked only with the consent of the Secretary of the Treasury.</content></subparagraph> <subparagraph class="fontsize10" id="ye915bdea-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><heading class="fontsize10"><inline class="smallCaps">Special rule</inline>.—</heading><content>If a plan described in subparagraph (A) is treated as a CSEC plan, section 104 of the Pension Protection Act of 2006, as amended by the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010, shall cease to apply to such plan as of the first date as of which such plan is treated as a CSEC plan.”</content></subparagraph> </paragraph> </quotedContent>.</content></subsection> <subsection class="firstIndent0 fontsize10" id="ye915bdeb-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s103/b" role="instruction" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="b">(b) </num><heading class="fontsize10"><inline class="smallCaps">Election To Cease To Be Treated as an Eligible Charity Plan</inline>.—</heading><chapeau>Subsection (d) of section 104 of the Pension Protection Act of 2006, as added by section 202 of the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of <sidenote><ref href="/us/usc/t26/s401">26 USC 401 note</ref>.</sidenote>2010, <amendingAction type="amend">is amended</amendingAction>—</chapeau><page identifier="/us/stat/128/1118">128 STAT. 1118</page> <paragraph class="fontsize10" id="ye915bded-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s103/b/1" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="1">(1) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>For purposes of</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>(1) <headingText class="smallCaps">In general.—</headingText>For purposes of</quotedText>”, and</content></paragraph> <paragraph class="fontsize10" id="ye915bdee-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s103/b/2" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="2">(2) </num><content>by <amendingAction type="add">adding</amendingAction> at the end the following:<quotedContent><paragraph class="indentUp0 fontsize10" id="ye9165a2f-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="2">“(2) </num><heading class="fontsize10"><inline class="smallCaps">Election not to be an eligible charity plan</inline>.—</heading><content>A plan sponsor may elect for a plan to cease to be treated as an eligible charity plan for plan years beginning after December 31, 2013. Such election shall be made at such time and in such form and manner as shall be prescribed by the Secretary of the Treasury. Any such election may be revoked only with the consent of the Secretary of the Treasury.</content></paragraph> <paragraph class="indentUp0 fontsize10" id="ye9165a30-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="3">“(3) </num><heading class="fontsize10"><inline class="smallCaps">Election to use funding options available to other plan sponsors</inline>.—</heading><subparagraph class="fontsize10" id="ye9165a31-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><content>A plan sponsor that makes the election described in paragraph (2) may elect for a plan to apply the rules described in subparagraphs (B), (C), and (D) for plan years beginning after December 31, 2013. Such election shall be made at such time and in such form and manner as shall be prescribed by the Secretary of the Treasury. Any such election may be revoked only with the consent of the Secretary of the Treasury.</content></subparagraph> <subparagraph class="fontsize10" id="ye9165a32-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><chapeau>Under the rules described in this subparagraph, for the first plan year beginning after December 31, 2013, a plan has—</chapeau><clause class="fontsize10" id="ye9165a33-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><content>an 11-year shortfall amortization base,</content></clause> <clause class="fontsize10" id="ye9165a34-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>a 12-year shortfall amortization base, and</content></clause> <clause class="fontsize10" id="ye9165a35-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="iii">“(iii) </num><content>a 7-year shortfall amortization base.</content></clause> </subparagraph> <subparagraph class="fontsize10" id="ye9165a36-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="C">“(C) </num><sidenote>Applicability.</sidenote><chapeau>Under the rules described in this subparagraph, section 303(c)(2)(A) and (B) of the Employee Retirement Income Security Act of 1974, and section 430(c)(2)(A) and (B) of the Internal Revenue Code of 1986 shall be applied by—</chapeau><clause class="fontsize10" id="ye9165a38-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><content>in the case of an 11-year shortfall amortization base, substituting ‘11-plan-year period’ for ‘7-plan-year period’ wherever such phrase appears, and</content></clause> <clause class="fontsize10" id="ye9165a39-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>in the case of a 12-year shortfall amortization base, substituting ‘12-plan-year period’ for ‘7-plan-year period’ wherever such phrase appears.</content></clause> </subparagraph> <subparagraph class="fontsize10" id="ye9165a3a-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="D">“(D) </num><sidenote>Applicability.</sidenote><chapeau>Under the rules described in this subparagraph, section 303(c)(7) of the Employee Retirement Income Security Act of 1974 and section 430(c)(7) of the Internal Revenue Code of 1986 shall apply to a plan for which an election has been made under subparagraph (A). Such provisions shall apply in the following manner:</chapeau><clause class="fontsize10" id="ye9165a3c-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><content>The first plan year beginning after December 31, 2013, shall be treated as an election year, and no other plan years shall be so treated.</content></clause> <clause class="fontsize10" id="ye9165a3d-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>All references in section 303(c)(7) of such Act and section 430(c)(7) of such Code to ‘February 28, 2010’ or ‘March 1, 2010’ shall be treated as references to ‘February 28, 2013’ or ‘March 1, 2013’, respectively.</content></clause> </subparagraph> <subparagraph class="fontsize10" id="ye9165a3e-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="E">“(E) </num><chapeau>For purposes of this paragraph, the 11-year amortization base is an amount, determined for the first plan year beginning after December 31, 2013, equal to the unamortized principal amount of the shortfall amortization base (as defined in section 303(c)(3) of the Employee Retirement Income Security Act of 1974 and section 430(c)(3) of the Internal Revenue Code of 1986) that would <page identifier="/us/stat/128/1119">128 STAT. 1119</page> have applied to the plan for the first plan beginning after December 31, 2009, if—</chapeau><clause class="fontsize10" id="ye9165a3f-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><content>the plan had never been an eligible charity plan,</content></clause> <clause class="fontsize10" id="ye9165a40-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><sidenote>Applicability.</sidenote><content>the plan sponsor had made the election described in section 303(c)(2)(D)(i) of the Employee Retirement Income Security Act of 1974 and in section 430(c)(2)(D)(i) of the Internal Revenue Code of 1986 to have section 303(c)(2)(D)(i) of such Act and section 430(c)(2)(D)(iii) of such Code apply with respect to the shortfall amortization base for the first plan year beginning after December 31, 2009, and</content></clause> <clause class="fontsize10" id="ye9165a42-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="iii">“(iii) </num><content>no event had occurred under paragraph (6) or (7) of section 303(c) of such Act or paragraph (6) or (7) of section 430(c) of such Code that, as of the first day of the first plan year beginning after December 31, 2013, would have modified the shortfall amortization base or the shortfall amortization installments with respect to the first plan year beginning after December 31, 2009.</content></clause> </subparagraph> <subparagraph class="fontsize10" id="ye9165a43-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="F">“(F) </num><sidenote>Applicability.</sidenote><chapeau>For purposes of this paragraph, the 12-year amortization base is an amount, determined for the first plan year beginning after December 31, 2013, equal to the unamortized principal amount of the shortfall amortization base (as defined in section 303(c)(3) of the Employee Retirement Income Security Act of 1974 and section 430(c)(3) of the Internal Revenue Code of 1986) that would have applied to the plan for the first plan beginning after December 31, 2010, if—</chapeau><clause class="fontsize10" id="ye9168155-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><content>the plan had never been an eligible charity plan,</content></clause> <clause class="fontsize10" id="ye9168156-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>the plan sponsor had made the election described in section 303(c)(2)(D)(i) of the Employee Retirement Income Security Act of 1974 and in section 430(c)(2)(D)(i) of the Internal Revenue Code of 1986 to have section 303(c)(2)(D)(i) of such Act and section 430(c)(2)(D)(iii) of such Code apply with respect to the shortfall amortization base for the first plan year beginning after December 31, 2010, and</content></clause> <clause class="fontsize10" id="ye9168157-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="iii">“(iii) </num><content>no event had occurred under paragraph (6) or (7) of section 303(c) of such Act or paragraph (6) or (7) of section 430(c) of such Code that, as of the first day of the first plan year beginning after December 31, 2013, would have modified the shortfall amortization base or the shortfall amortization installments with respect to the first plan year beginning after December 31, 2010.</content></clause> </subparagraph> <subparagraph class="fontsize10" id="ye9168158-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="G">“(G) </num><chapeau>For purposes of this paragraph, the 7-year shortfall amortization base is an amount, determined for the first plan year beginning after December 31, 2013, equal to—</chapeau><clause class="fontsize10" id="ye9168159-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><content>the shortfall amortization base for the first plan year beginning after December 31, 2013, without regard to this paragraph, minus</content></clause> <clause class="fontsize10" id="ye916815a-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>the sum of the 11-year shortfall amortization base and the 12-year shortfall amortization base.<page identifier="/us/stat/128/1120">128 STAT. 1120</page></content></clause> </subparagraph> </paragraph> <paragraph class="indentUp0 fontsize10" id="ye916815b-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="4">“(4) </num><sidenote>Deadline.</sidenote><heading class="fontsize10"><inline class="smallCaps">Retroactive election</inline>.—</heading><content>Not later than December 31, 2014, a plan sponsor may make a one-time, irrevocable, retroactive election to not be treated as an eligible charity plan. Such<sidenote>Effective date.</sidenote> election shall be effective for plan years beginning after December 31, 2007, and shall be made by providing reasonable notice to the Secretary of the Treasury.”</content></paragraph> </quotedContent>.</content></paragraph> </subsection> <subsection class="firstIndent0 fontsize10" id="ye916815e-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s103/c" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="c">(c) </num><sidenote><ref href="/us/usc/t26/s410">26 USC 410 note</ref>.</sidenote><heading class="fontsize10"><inline class="smallCaps">Deemed Election</inline>.—</heading><chapeau>For purposes of the Internal Revenue Code of 1986, sections 4(b)(2) and 4021(b)(3) of the Employee Retirement Income Security Act of 1974, and all other purposes, a plan shall be deemed to have made an irrevocable election under section 410(d) of the Internal Revenue Code of 1986 if—</chapeau><paragraph class="fontsize10" id="ye9168160-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s103/c/1" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="1">(1) </num><content>the plan was established before January 1, 2014;</content></paragraph> <paragraph class="fontsize10" id="ye9168161-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s103/c/2" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="2">(2) </num><content>the plan falls within the definition of a CSEC plan;</content></paragraph> <paragraph class="fontsize10" id="ye9168162-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s103/c/3" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="3">(3) </num><content>the plan sponsor does not make an election under section 210(f)(3)(A) of the Employee Retirement Income Security Act of 1974 and section 414(y)(3)(A) of the Internal Revenue Code of 1986, as added by this Act; and</content></paragraph> <paragraph class="fontsize10" id="ye9168163-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s103/c/4" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="4">(4) </num><content>the plan, plan sponsor, administrator, or fiduciary remits one or more premium payments for the plan to the Pension Benefit Guaranty Corporation for a plan year beginning after December 31, 2013.</content></paragraph> </subsection> <subsection class="firstIndent0 fontsize10" id="ye9168164-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s103/d" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="d">(d) </num><sidenote><ref href="/us/usc/t26/s1060">26 USC 1060 note</ref>.</sidenote><heading class="fontsize10"><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply as of the date of enactment of this Act.</content></subsection> </section> <section id="d355206e2710" identifier="/us/pl/113/97/tI/s104" style="-uslm-lc:I658143"><num class="fontsize12" value="104">SEC. 104. </num><heading>TRANSPARENCY.</heading><subsection class="firstIndent0 fontsize10" id="ye916cf86-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s104/a" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="a">(a) </num><heading class="fontsize10"><inline class="smallCaps">Notice to Participants</inline>.—</heading><paragraph class="fontsize10" id="ye916cf87-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s104/a/1" role="instruction" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="1">(1) </num><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><content>Paragraph (2) of section 101(f) of the Employee Retirement Income Security Act of 1974 (<ref href="/us/usc/t29/s1021/f">29 U.S.C. 1021(f)</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following new subparagraph:<quotedContent><subparagraph class="fontsize10" id="ye916f698-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="E">“(E) </num><heading class="fontsize10"><inline class="smallCaps">Effect of csec plan rules on plan funding</inline>.—</heading><chapeau>In the case of a CSEC plan, each notice under paragraph (1) shall include—</chapeau><clause class="fontsize10" id="ye916f699-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><content>a statement that different rules apply to CSEC plans than apply to single-employer plans,</content></clause> <clause class="fontsize10" id="ye916f69a-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>for the first 2 plan years beginning after December 31, 2013, a statement that, as a result of changes in the law made by the Cooperative and Small Employer Charity Pension Flexibility Act, the contributions to the plan may have changed, and</content></clause> <clause class="fontsize10" id="ye916f69b-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="iii">“(iii) </num><content>in the case of a CSEC plan that is in funding restoration status for the plan year, a statement that the plan is in funding restoration status for such plan year.</content></clause> <continuation class="firstIndent1 fontsize10" id="xe916f69c-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124">A copy of the statement required under clause (iii) shall be provided to the Secretary, the Secretary of the Treasury, and the Director of the Pension Benefit Guaranty Corporation.”</continuation></subparagraph> </quotedContent>.</content></paragraph> <paragraph class="fontsize10" id="ye916f69d-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s104/a/2" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="2">(2) </num><sidenote><ref href="/us/usc/t29/s1021">29 USC 1021 note</ref>.</sidenote><heading class="fontsize10"><inline class="smallCaps">Model notice</inline>.—</heading><content>The Secretary of Labor may modify the model notice required to be published under section 501(c) of the Pension Protection Act of 2006 to include the information described in section 101(f)(2)(E) of the Employee Retirement Income Security Act of 1974, as added by this subsection.</content></paragraph> </subsection> <subsection class="firstIndent0 fontsize10" id="ye916f69f-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s104/b" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="b">(b) </num><heading class="fontsize10"><inline class="smallCaps">Notice of Failure To Meet Minimum Funding Standards</inline>.—</heading><paragraph class="fontsize10" id="ye916f6a0-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s104/b/1" role="instruction" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="1">(1) </num><heading class="fontsize10"><inline class="smallCaps">Pending waivers</inline>.—</heading><content>Paragraph (2) of section 101(d) of the Employee Retirement Income Security Act of 1974 (29 <page identifier="/us/stat/128/1121">128 STAT. 1121</page> U.S.C. 1021(d)) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="delete">striking</amendingAction> “<quotedText>303</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>303 or 306</quotedText>”.</content></paragraph> <paragraph class="fontsize10" id="ye916f6a1-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s104/b/2" role="instruction" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="2">(2) </num><heading class="fontsize10"><inline class="smallCaps">Definitions</inline>.—</heading><content>Paragraph (3) of section 101(d) of the Employee Retirement Income Security Act of 1974 (<ref href="/us/usc/t21/s1021/d">21 U.S.C. 1021(d)</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="delete">striking</amendingAction> “<quotedText>303(j)</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>303(j) or 306(f), whichever is applicable</quotedText>”.</content></paragraph> </subsection> <subsection class="firstIndent0 fontsize10" id="ye916f6a2-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s104/c" role="instruction" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="c">(c) </num><heading class="fontsize10"><inline class="smallCaps">Additional Reporting Requirements</inline>.—</heading><content>Section 103 of the Employee Retirement Income Security Act of 1974 (<ref href="/us/usc/t29/s1023">29 U.S.C. 1023</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following new subsection:<quotedContent><subsection class="firstIndent0 fontsize10" id="ye916f6a3-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="g">“(g) </num><heading class="fontsize10"><inline class="smallCaps">Additional Information With Respect to Multiple Employer Plans</inline>.—</heading><content>With respect to any multiple employer plan, an annual report under this section for a plan year shall include a list of participating employers and a good faith estimate of the percentage of total contributions made by such participating employers during the plan year.”</content></subsection> </quotedContent>.</content></subsection> </section> <section id="d355206e2867" identifier="/us/pl/113/97/tI/s105" style="-uslm-lc:I658143"><num class="fontsize12" value="105">SEC. 105. </num><sidenote><ref href="/us/usc/t29/s1304a">29 USC 1304a</ref>.</sidenote><heading>SPONSOR EDUCATION AND ASSISTANCE.</heading><subsection class="firstIndent0 fontsize10" id="ye9171db5-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s105/a" role="definitions" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="a">(a) </num><heading class="fontsize10"><inline class="smallCaps">Definition</inline>.—</heading><content>In this section, the term “<term>CSEC plan</term>” has the meaning given that term in subsection (f)(1) of section 210 of the Employee Retirement Income Security Act of 1974 (<ref href="/us/usc/t29/s1060/f/1">29 U.S.C. 1060(f)(1)</ref>) (as added by this Act).</content></subsection> <subsection class="firstIndent0 fontsize10" id="ye9171db6-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tI/s105/b" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="b">(b) </num><heading class="fontsize10"><inline class="smallCaps">Education</inline>.—</heading><content>The Participant and Plan Sponsor Advocate established under section 4004 of the Employee Retirement Income Security Act of 1974 (<ref href="/us/usc/t29/s1304">29 U.S.C. 1304</ref>) shall make itself available to assist CSEC plan sponsors and participants as part of the duties it performs under the general supervision of the Board of Directors under section 4004(b) of such Act (<ref href="/us/usc/t29/s1304/b">29 U.S.C. 1304(b)</ref>).</content></subsection> </section> <num value="II">TITLE II—</num><heading>AMENDMENTS TO INTERNAL REVENUE CODE OF 1986</heading> <section id="d355206e2912" identifier="/us/pl/113/97/tII/s201" role="instruction" style="-uslm-lc:I658143"><num class="fontsize12" value="201">SEC. 201. </num><heading>DEFINITION OF COOPERATIVE AND SMALL EMPLOYER CHARITY PENSION PLANS.</heading><content class="firstIndent0 fontsize10" id="xe9171db7-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658120"> Section 414 of the Internal Revenue Code of 1986<sidenote><ref href="/us/usc/t26/s414">26 USC 414</ref>.</sidenote> <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following new subsection:<quotedContent><subsection class="firstIndent0 fontsize10" id="ye9176bd9-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="y">“(y) </num><heading class="fontsize10"><inline class="smallCaps">Cooperative and Small Employer Charity Pension Plans</inline>.—</heading><paragraph class="fontsize10" id="ye9176bda-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="1">“(1) </num><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><chapeau>For purposes of this title, except as provided in this subsection, a CSEC plan is a defined benefit plan (other than a multiemployer plan)—</chapeau><subparagraph class="fontsize10" id="ye9176bdb-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><sidenote>Applicability.</sidenote><chapeau>to which section 104 of the Pension Protection Act of 2006 applies, without regard to—</chapeau><clause class="fontsize10" id="ye9176bdd-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><content>section 104(a)(2) of such Act;</content></clause> <clause class="fontsize10" id="ye9176bde-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>the amendments to such section 104 by section 202(b) of the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010; and</content></clause> <clause class="fontsize10" id="ye9176bdf-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="iii">“(iii) </num><content>paragraph (3)(B); or</content></clause> </subparagraph> <subparagraph class="fontsize10" id="ye9176be0-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><content>that, as of June 25, 2010, was maintained by more than one employer and all of the employers were organizations described in section 501(c)(3).</content></subparagraph> </paragraph> <paragraph class="fontsize10" id="ye9176be1-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="2">“(2) </num><heading class="fontsize10"><inline class="smallCaps">Aggregation</inline>.—</heading><content>All employers that are treated as a single employer under subsection (b) or (c) shall be treated as a single employer for purposes of determining if a plan was maintained by more than one employer under paragraph (1)(B).”</content></paragraph> </subsection> </quotedContent>.<page identifier="/us/stat/128/1122">128 STAT. 1122</page></content></section> <section id="d355206e2990" identifier="/us/pl/113/97/tII/s202" style="-uslm-lc:I658143"><num class="fontsize12" value="202">SEC. 202. </num><heading>FUNDING RULES APPLICABLE TO COOPERATIVE AND SMALL EMPLOYER CHARITY PENSION PLANS.</heading><subsection class="firstIndent0 fontsize10" id="ye91b1562-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tII/s202/a" role="instruction" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="a">(a) </num><heading class="fontsize10"><inline class="smallCaps">In General</inline>.—</heading><content>Subpart A of part III of subchapter D of chapter 1 of subtitle A of the Internal Revenue Code of 1986 <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following new section:<quotedContent><section class="centered fontsize12" id="ye91f3413-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658143"><num class="fontsize12" value="433">“SEC. 433. </num><sidenote><ref href="/us/usc/t26/s433">26 USC 433</ref>.</sidenote><heading class="fontsize12">MINIMUM FUNDING STANDARDS.</heading><subsection class="firstIndent0 fontsize10" id="ye91f3415-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="a">“(a) </num><heading class="fontsize10"><inline class="smallCaps">General Rule</inline>.—</heading><content>For purposes of section 412, the term ‘<term>accumulated funding deficiency</term>’ for a CSEC plan means the excess of the total charges to the funding standard account for all plan years (beginning with the first plan year to which section 412 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.</content></subsection> <subsection class="firstIndent0 fontsize10" id="ye91f3416-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="b">“(b) </num><heading class="fontsize10"><inline class="smallCaps">Funding Standard Account</inline>.—</heading><paragraph class="fontsize10" id="ye91f3417-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="1">“(1) </num><sidenote>Applicability.</sidenote><heading class="fontsize10"><inline class="smallCaps">Account required</inline>.—</heading><content>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.</content></paragraph> <paragraph class="fontsize10" id="ye91f3419-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="2">“(2) </num><sidenote>Time period.</sidenote><heading class="fontsize10"><inline class="smallCaps">Charges to account</inline>.—</heading><chapeau>For a plan year, the funding standard account shall be charged with the sum of—</chapeau><subparagraph class="fontsize10" id="ye91f341b-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><content>the normal cost of the plan for the plan year,</content></subparagraph> <subparagraph class="fontsize10" id="ye91f341c-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><chapeau>the amounts necessary to amortize in equal annual installments (until fully amortized)—</chapeau><clause class="fontsize10" id="ye91f341d-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><content>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 section 412 applies, over a period of 40 plan years,</content></clause> <clause class="fontsize10" id="ye91f341e-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>in the case of a plan which comes into existence after January 1, 1974, but before the first day of the first plan year beginning after December 31, 2013, the unfunded past service liability under the plan on the first day of the first plan year to which section 412 applies, over a period of 30 plan years,</content></clause> <clause class="fontsize10" id="ye91f341f-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="iii">“(iii) </num><content>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 15 plan years,</content></clause> <clause class="fontsize10" id="ye91f3420-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="iv">“(iv) </num><content>separately, with respect to each plan year, the net experience loss (if any) under the plan, over a period of 5 plan years, and</content></clause> <clause class="fontsize10" id="ye91f3421-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="v">“(v) </num><content>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 10 plan years,</content></clause> </subparagraph> <subparagraph class="fontsize10" id="ye91f3422-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="C">“(C) </num><content>the amount necessary to amortize each waived funding deficiency (within the meaning of section 412(c)(3)) for each prior plan year in equal annual installments (until fully amortized) over a period of 5 plan years,</content></subparagraph> <subparagraph class="fontsize10" id="ye91f3423-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="D">“(D) </num><content>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), and</content></subparagraph> <subparagraph class="fontsize10" id="ye91f3424-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="E">“(E) </num><content>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 <page identifier="/us/stat/128/1123">128 STAT. 1123</page> made under the plan but for the provisions of section 412(c)(7)(A)(i)(I) (as in effect on the day before the enactment of the Pension Protection Act of 2006).</content></subparagraph> </paragraph> <paragraph class="fontsize10" id="ye91f3425-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="3">“(3) </num><heading class="fontsize10"><inline class="smallCaps">Credits to account</inline>.—</heading><chapeau>For a plan year, the funding standard account shall be credited with the sum of—</chapeau><subparagraph class="fontsize10" id="ye91f3426-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><content>the amount considered contributed by the employer to or under the plan for the plan year,</content></subparagraph> <subparagraph class="fontsize10" id="ye91f3427-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><sidenote>Time periods.</sidenote><chapeau>the amount necessary to amortize in equal annual installments (until fully amortized)—</chapeau><clause class="fontsize10" id="ye91f3429-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><content>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 15 plan years,</content></clause> <clause class="fontsize10" id="ye91f342a-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>separately, with respect to each plan year, the net experience gain (if any) under the plan, over a period of 5 plan years, and</content></clause> <clause class="fontsize10" id="ye91f342b-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="iii">“(iii) </num><content>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 10 plan years,</content></clause> </subparagraph> <subparagraph class="fontsize10" id="ye91f342c-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="C">“(C) </num><content>the amount of the waived funding deficiency (within the meaning of section 412(c)(3)) for the plan year, and</content></subparagraph> <subparagraph class="fontsize10" id="ye91f342d-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="D">“(D) </num><content>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.</content></subparagraph> </paragraph> <paragraph class="fontsize10" id="ye91f342e-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="4">“(4) </num><heading class="fontsize10"><inline class="smallCaps">Combining and offsetting amounts to be amortized</inline>.—</heading><chapeau>Under<sidenote>Regulations.</sidenote> regulations prescribed by the Secretary, amounts required to be amortized under paragraph (2) or paragraph (3), as the case may be—</chapeau><subparagraph class="fontsize10" id="ye91f3430-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><content>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</content></subparagraph> <subparagraph class="fontsize10" id="ye91f3431-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><content>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.</content></subparagraph> </paragraph> <paragraph class="fontsize10" id="ye91f3432-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="5">“(5) </num><heading class="fontsize10"><inline class="smallCaps">Interest</inline>.—</heading><subparagraph class="fontsize10" id="ye91f3433-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><sidenote>Regulations.</sidenote><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided in subparagraph (B), 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.</content></subparagraph> <subparagraph class="fontsize10" id="ye91f3435-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><heading class="fontsize10"><inline class="smallCaps">Exception</inline>.—</heading><chapeau>The interest rate used for purposes of computing the amortization charge described in subsection (b)(2)(C) or for purposes of any arrangement under subsection (d) for any plan year shall be the greater of—</chapeau><page identifier="/us/stat/128/1124">128 STAT. 1124</page> <clause class="fontsize10" id="ye91f3436-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><content>150 percent of the Federal mid-term rate (as in effect under section 1274 for the 1st month of such plan year), or</content></clause> <clause class="fontsize10" id="ye91f3437-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>the rate of interest determined under subparagraph (A).</content></clause> </subparagraph> </paragraph> <paragraph class="fontsize10" id="ye91f3438-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="6">“(6) </num><heading class="fontsize10"><inline class="smallCaps">Amortization schedules in effect</inline>.—</heading><content>Amortization schedules for amounts described in paragraphs (2) and (3) that are in effect as of the last day of the last plan year beginning before January 1, 2014, by reason of section 104 of the Pension Protection Act of 2006 shall remain in effect pursuant to their terms and this section, except that such amounts shall not be amortized again under this section.</content></paragraph> </subsection> <subsection class="firstIndent0 fontsize10" id="ye91f3439-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="c">“(c) </num><heading class="fontsize10"><inline class="smallCaps">Special Rules</inline>.—</heading><paragraph class="fontsize10" id="ye91f343a-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="1">“(1) </num><heading class="fontsize10"><inline class="smallCaps">Determinations to be made under funding method</inline>.—</heading><content>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.</content></paragraph> <paragraph class="fontsize10" id="ye91f343b-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="2">“(2) </num><heading class="fontsize10"><inline class="smallCaps">Valuation of assets</inline>.—</heading><subparagraph class="fontsize10" id="ye91f343c-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><content>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.</content></subparagraph> <subparagraph class="fontsize10" id="ye91f343d-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><heading class="fontsize10"><inline class="smallCaps">Dedicated bond portfolio</inline>.—</heading><content>The Secretary may by regulations provide that the value of any dedicated bond portfolio of a plan shall be determined by using the interest rate under section 412(b)(5) (as in effect on the day before the enactment of the Pension Protection Act of 2006).</content></subparagraph> </paragraph> <paragraph class="fontsize10" id="ye91f343e-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="3">“(3) </num><heading class="fontsize10"><inline class="smallCaps">Actuarial assumptions must be reasonable</inline>.—</heading><chapeau>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—</chapeau><subparagraph class="fontsize10" id="ye91f343f-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><content>each of which is reasonable (taking into account the experience of the plan and reasonable expectations), and</content></subparagraph> <subparagraph class="fontsize10" id="ye91f3440-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><content>which, in combination, offer the actuary’s best estimate of anticipated experience under the plan.</content></subparagraph> </paragraph> <paragraph class="fontsize10" id="ye91f3441-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="4">“(4) </num><heading class="fontsize10"><inline class="smallCaps">Treatment of certain changes as experience gain or loss</inline>.—</heading><chapeau>For purposes of this section, if—</chapeau><subparagraph class="fontsize10" id="ye91f3442-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><content>a change in benefits under the Social Security Act or in other retirement benefits created under Federal or State law, or</content></subparagraph> <subparagraph class="fontsize10" id="ye91f3443-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><content>a change in the definition of the term ‘<term>wages</term>’ under section 3121 or a change in the amount of such wages taken into account under regulations prescribed for purposes of section 401(a)(5),</content></subparagraph> <continuation class="firstIndent1 fontsize10" id="xe91f3444-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122">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.</continuation></paragraph> <paragraph class="fontsize10" id="ye91f3445-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="5">“(5) </num><heading class="fontsize10"><inline class="smallCaps">Funding method and plan year</inline>.—</heading><subparagraph class="fontsize10" id="ye91f3446-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><heading class="fontsize10"><inline class="smallCaps">Funding methods available</inline>.—</heading><content>All funding methods available to CSEC plans under section 412 (as in effect on the day before the enactment of the Pension Protection Act of 2006) shall continue to be available under this section.<page identifier="/us/stat/128/1125">128 STAT. 1125</page></content></subparagraph> <subparagraph class="fontsize10" id="ye91f3447-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><heading class="fontsize10"><inline class="smallCaps">Changes</inline>.—</heading><content>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. 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.</content></subparagraph> <subparagraph class="fontsize10" id="ye91f3448-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="C">“(C) </num><heading class="fontsize10"><inline class="smallCaps">Approval required for certain changes in assumptions by certain single-employer plans subject to additional funding requirement</inline>.—</heading><clause class="fontsize10" id="ye91f3449-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><content>No actuarial assumption (other than the assumptions described in subsection (h)(3)) used to determine the current liability for a plan to which this subparagraph applies may be changed without the approval of the Secretary.</content></clause> <clause class="fontsize10" id="ye91f344a-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><heading class="fontsize10"><inline class="smallCaps">Plans to which subparagraph applies</inline>.—</heading><chapeau>This subparagraph shall apply to a plan only if—</chapeau><subclause class="fontsize10" id="ye91f5b5b-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658128"><num class="fontsize10" style="-uslm-lc:emspace2" value="I">“(I) </num><content>the plan is a CSEC plan,</content></subclause> <subclause class="fontsize10" id="ye91f5b5c-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658128"><num class="fontsize10" style="-uslm-lc:emspace2" value="II">“(II) </num><content>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 (disregarding plans with no unfunded vested benefits) exceed $50,000,000, and</content></subclause> <subclause class="fontsize10" id="ye91f5b5d-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658128"><num class="fontsize10" style="-uslm-lc:emspace2" value="III">“(III) </num><content>the change in assumptions (determined after taking into account any changes in interest rate and mortality table) results in a decrease in the funding shortfall 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.</content></subclause> </clause> </subparagraph> </paragraph> <paragraph class="fontsize10" id="ye91f5b5e-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="6">“(6) </num><heading class="fontsize10"><inline class="smallCaps">Full funding</inline>.—</heading><chapeau>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 (e)) in excess of the full funding limitation—</chapeau><subparagraph class="fontsize10" id="ye91f5b5f-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><content>the funding standard account shall be credited with the amount of such excess, and</content></subparagraph> <subparagraph class="fontsize10" id="ye91f5b60-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><content>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.</content></subparagraph> </paragraph> <paragraph class="fontsize10" id="ye91f5b61-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="7">“(7) </num><heading class="fontsize10"><inline class="smallCaps">Full-funding limitation</inline>.—</heading><chapeau>For purposes of paragraph (6), the term ‘<term>full-funding limitation</term>’ means the excess (if any) of—</chapeau><subparagraph class="fontsize10" id="ye91f5b62-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><content>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</content></subparagraph> <subparagraph class="fontsize10" id="ye91f5b63-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><chapeau>the lesser of—</chapeau><clause class="fontsize10" id="ye91f5b64-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><content>the fair market value of the plan’s assets, or<page identifier="/us/stat/128/1126">128 STAT. 1126</page></content></clause> <clause class="fontsize10" id="ye91f5b65-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>the value of such assets determined under paragraph (2).</content></clause> </subparagraph> <subparagraph class="fontsize10" id="ye91f5b66-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="C">“(C) </num><heading class="fontsize10"><inline class="smallCaps">Minimum amount</inline>.—</heading><clause class="fontsize10" id="ye91f5b67-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><chapeau>In no event shall the full-funding limitation determined under subparagraph (A) be less than the excess (if any) of—</chapeau><subclause class="fontsize10" id="ye91f5b68-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658128"><num class="fontsize10" style="-uslm-lc:emspace2" value="I">“(I) </num><content>90 percent of the current liability (determined without regard to paragraph (4) of subsection (h)) of the plan (including the expected increase in such current liability due to benefits accruing during the plan year), over</content></subclause> <subclause class="fontsize10" id="ye91f5b69-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658128"><num class="fontsize10" style="-uslm-lc:emspace2" value="II">“(II) </num><content>the value of the plan’s assets determined under paragraph (2).</content></subclause> </clause> <clause class="fontsize10" id="ye91f5b6a-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><heading class="fontsize10"><inline class="smallCaps">Assets</inline>.—</heading><content>For purposes of clause (i), assets shall not be reduced by any credit balance in the funding standard account.</content></clause> </subparagraph> </paragraph> <paragraph class="fontsize10" id="ye91f5b6b-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="8">“(8) </num><heading class="fontsize10"><inline class="smallCaps">Annual valuation</inline>.—</heading><subparagraph class="fontsize10" id="ye91f5b6c-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><sidenote>Determination.Deadline.</sidenote><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><content>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.</content></subparagraph> <subparagraph class="fontsize10" id="ye91f5b6f-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><heading class="fontsize10"><inline class="smallCaps">Valuation date</inline>.—</heading><clause class="fontsize10" id="ye91f5b70-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><heading class="fontsize10"><inline class="smallCaps">Current year</inline>.—</heading><content>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.</content></clause> <clause class="fontsize10" id="ye91f5b71-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><heading class="fontsize10"><inline class="smallCaps">Use of prior year valuation</inline>.—</heading><content>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 100 percent of the plan’s current liability.</content></clause> <clause class="fontsize10" id="ye91f5b72-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="iii">“(iii) </num><heading class="fontsize10"><inline class="smallCaps">Adjustments</inline>.—</heading><content>Information under clause (ii) shall, in accordance with regulations, be actuarially adjusted to reflect significant differences in participants.</content></clause> <clause class="fontsize10" id="ye91f5b73-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="iv">“(iv) </num><heading class="fontsize10"><inline class="smallCaps">Limitation</inline>.—</heading><content>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.</content></clause> </subparagraph> </paragraph> <paragraph class="fontsize10" id="ye91f5b74-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="9">“(9) </num><heading class="fontsize10"><inline class="smallCaps">Time when certain contributions deemed made</inline>.—</heading><chapeau>For purposes of this section, any contributions for a plan year made by an employer during the period—</chapeau><subparagraph class="fontsize10" id="ye91f5b75-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><content>beginning on the day after the last day of such plan year, and</content></subparagraph> <subparagraph class="fontsize10" id="ye91f5b76-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><content>ending on the day which is 8½ months after the close of the plan year,</content></subparagraph> <continuation class="firstIndent1 fontsize10" id="xe91f5b77-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122">shall be deemed to have been made on such last day.</continuation></paragraph> <paragraph class="fontsize10" id="ye91f5b78-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="10">“(10) </num><heading class="fontsize10"><inline class="smallCaps">Anticipation of benefit increases effective in the future</inline>.—</heading><content>In determining projected benefits, the funding method of a collectively bargained CSEC plan described in section 413(a) shall anticipate benefit increases scheduled to <page identifier="/us/stat/128/1127">128 STAT. 1127</page> take effect during the term of the collective bargaining agreement applicable to the plan.</content></paragraph> </subsection> <subsection class="firstIndent0 fontsize10" id="ye91f5b79-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="d">“(d) </num><sidenote>Determinations.</sidenote><heading class="fontsize10"><inline class="smallCaps">Extension of Amortization Periods</inline>.—</heading><chapeau>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 for a period of time (not in excess of 10 years) if the Secretary determines that such extension would carry out the purposes of the Employee Retirement Income Security Act of 1974 and provide adequate protection for participants under the plan and their beneficiaries, and if the Secretary determines that the failure to permit such extension would result in—</chapeau><paragraph class="fontsize10" id="ye91f5b7b-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="1">“(1) </num><content>a substantial risk to the voluntary continuation of the plan, or</content></paragraph> <paragraph class="fontsize10" id="ye91f5b7c-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="2">“(2) </num><content>a substantial curtailment of pension benefit levels or employee compensation.</content></paragraph> </subsection> <subsection class="firstIndent0 fontsize10" id="ye91f5b7d-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="e">“(e) </num><heading class="fontsize10"><inline class="smallCaps">Alternative Minimum Funding Standard</inline>.—</heading><paragraph class="fontsize10" id="ye91f5b7e-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="1">“(1) </num><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><content>A CSEC 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.</content></paragraph> <paragraph class="fontsize10" id="ye91f5b7f-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="2">“(2) </num><heading class="fontsize10"><inline class="smallCaps">Charges and credits to account</inline>.—</heading><chapeau>For a plan year the alternative minimum funding standard account shall be—</chapeau><subparagraph class="fontsize10" id="ye91f5b80-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><chapeau>charged with the sum of—</chapeau><clause class="fontsize10" id="ye91f5b81-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><content>the lesser of normal cost under the funding method used under the plan or normal cost determined under the unit credit method,</content></clause> <clause class="fontsize10" id="ye91f5b82-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>the excess, if any, of the present value of accrued benefits under the plan over the fair market value of the assets, and</content></clause> <clause class="fontsize10" id="ye91f5b83-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="iii">“(iii) </num><content>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</content></clause> </subparagraph> <subparagraph class="fontsize10" id="ye91f5b84-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><content>credited with the amount considered contributed by the employer to or under the plan for the plan year.</content></subparagraph> </paragraph> <paragraph class="fontsize10" id="ye91f5b85-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="3">“(3) </num><heading class="fontsize10"><inline class="smallCaps">Interest</inline>.—</heading><content>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.</content></paragraph> </subsection> <subsection class="firstIndent0 fontsize10" id="ye91f5b86-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="f">“(f) </num><heading class="fontsize10"><inline class="smallCaps">Quarterly Contributions Required</inline>.—</heading><paragraph class="fontsize10" id="ye91f5b87-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="1">“(1) </num><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><chapeau>If a CSEC plan which has a funded current liability percentage for the preceding plan year of less than 100 percent fails to pay the full amount of a required installment for the plan year, then the rate of interest charged to the funding standard account under subsection (b)(5) with respect to the amount of the underpayment for the period of the underpayment shall be equal to the greater of—</chapeau><subparagraph class="fontsize10" id="ye91f5b88-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><content>175 percent of the Federal mid-term rate (as in effect under section 1274 for the 1st month of such plan year), or</content></subparagraph> <subparagraph class="fontsize10" id="ye91f5b89-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><content>the rate of interest used under the plan in determining costs.</content></subparagraph> </paragraph> <paragraph class="fontsize10" id="ye91f5b8a-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="2">“(2) </num><heading class="fontsize10"><inline class="smallCaps">Amount of underpayment, period of underpayment</inline>.—</heading><chapeau>For purposes of paragraph (1)—</chapeau><page identifier="/us/stat/128/1128">128 STAT. 1128</page> <subparagraph class="fontsize10" id="ye91f5b8b-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><heading class="fontsize10"><inline class="smallCaps">Amount</inline>.—</heading><chapeau>The amount of the underpayment shall be the excess of—</chapeau><clause class="fontsize10" id="ye91f5b8c-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><content>the required installment, over</content></clause> <clause class="fontsize10" id="ye91f5b8d-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>the amount (if any) of the installment contributed to or under the plan on or before the due date for the installment.</content></clause> </subparagraph> <subparagraph class="fontsize10" id="ye91f5b8e-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><heading class="fontsize10"><inline class="smallCaps">Period of underpayment</inline>.—</heading><content>The period for which interest is charged under this subsection with regard to any portion of the underpayment shall run from the due date for the installment to the date on which such portion is contributed to or under the plan (determined without regard to subsection (c)(9)).</content></subparagraph> <subparagraph class="fontsize10" id="ye91f5b8f-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="C">“(C) </num><heading class="fontsize10"><inline class="smallCaps">Order of crediting contributions</inline>.—</heading><content>For purposes of subparagraph (A)(ii), contributions shall be credited against unpaid required installments in the order in which such installments are required to be paid.</content></subparagraph> </paragraph> <paragraph class="fontsize10" id="ye91f5b90-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="3">“(3) </num><heading class="fontsize10"><inline class="smallCaps">Number of required installments; due dates</inline>.—</heading><chapeau>For purposes of this subsection—</chapeau><subparagraph class="fontsize10" id="ye91f5b91-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><heading class="fontsize10"><inline class="smallCaps">Payable in 4 installments</inline>.—</heading><content>There shall be 4 required installments for each plan year.</content></subparagraph> <subparagraph class="fontsize10" id="ye91f5b92-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><heading class="fontsize10"><inline class="smallCaps">Time for payment of installments</inline>.—</heading><content><?GPOvSpace 04?> <xhtml:table xmlns:xhtml="http://www.w3.org/1999/xhtml" class="Quoted fullWidth" style="border-collapse:collapse; border=0; -uslm-lc: 'c2,L0,tp0,p10,10/12,s150,xl150R'; "><xhtml:colgroup><xhtml:col role="stub" style="min-width: 212pt;"/> <xhtml:col role="reading" style="min-width: 212pt;"/> </xhtml:colgroup><xhtml:thead><xhtml:tr class="header" style="font-size:10pt;-uslm-lc:h1"> <xhtml:th style="min-width: 212.0pt; text-align:left; vertical-align:middle;">“In the case of the following required installments:</xhtml:th><xhtml:th style="min-width: 212.0pt; text-align:right; vertical-align:middle;">The due date is:</xhtml:th></xhtml:tr> </xhtml:thead><xhtml:tbody style="line-height:12pt; font-size:10pt;"><xhtml:tr style="-uslm-lc:I01"><xhtml:td leaders="yes" stubHierarchy="1" style=" text-align:left; vertical-align:top;"><inline>1st</inline></xhtml:td><xhtml:td style=" text-align:right; vertical-align:top;">April 15 </xhtml:td></xhtml:tr> <xhtml:tr style="-uslm-lc:I01"><xhtml:td leaders="yes" stubHierarchy="1" style=" text-align:left; vertical-align:top;"><inline>2nd</inline></xhtml:td><xhtml:td style=" text-align:right; vertical-align:top;">July 15 </xhtml:td></xhtml:tr> <xhtml:tr style="-uslm-lc:I01"><xhtml:td leaders="yes" stubHierarchy="1" style=" text-align:left; vertical-align:top;"><inline>3rd</inline></xhtml:td><xhtml:td style=" text-align:right; vertical-align:top;">October 15 </xhtml:td></xhtml:tr> <xhtml:tr style="-uslm-lc:I01"><xhtml:td leaders="yes" stubHierarchy="1" style=" text-align:left; vertical-align:top;"><inline>4th</inline></xhtml:td><xhtml:td style=" text-align:right; vertical-align:top;">January 15 of the following year.</xhtml:td></xhtml:tr> </xhtml:tbody></xhtml:table><?GPOvSpace 04?></content></subparagraph> </paragraph> <paragraph class="fontsize10" id="ye91f5b93-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="4">“(4) </num><heading class="fontsize10"><inline class="smallCaps">Amount of required installment</inline>.—</heading><chapeau>For purposes of this subsection—</chapeau><subparagraph class="fontsize10" id="ye91f5b94-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><content>The amount of any required installment shall be 25 percent of the required annual payment.</content></subparagraph> <subparagraph class="fontsize10" id="ye91f5b95-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><heading class="fontsize10"><inline class="smallCaps">Required annual payment</inline>.—</heading><chapeau>For purposes of subparagraph (A), the term ‘<term>required annual payment</term>’ means the lesser of—</chapeau><clause class="fontsize10" id="ye91f5b96-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><content>90 percent of the amount required to be contributed to or under the plan by the employer for the plan year under section 412 (without regard to any waiver under subsection (c) thereof), or</content></clause> <clause class="fontsize10" id="ye91f5b97-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>100 percent of the amount so required for the preceding plan year.</content></clause> <continuation class="firstIndent1 fontsize10" id="xe91f5b98-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124">Clause (ii) shall not apply if the preceding plan year was not a year of 12 months.</continuation></subparagraph> </paragraph> <paragraph class="fontsize10" id="ye91f5b99-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="5">“(5) </num><heading class="fontsize10"><inline class="smallCaps">Liquidity requirement</inline>.—</heading><subparagraph class="fontsize10" id="ye91f5b9a-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><content>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).</content></subparagraph> <subparagraph class="fontsize10" id="ye91f5b9b-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><heading class="fontsize10"><inline class="smallCaps">Plans to which paragraph applies</inline>.—</heading><chapeau>This paragraph shall apply to a CSEC plan other than a plan <page identifier="/us/stat/128/1129">128 STAT. 1129</page> described in section 412(l)(6)(A) (as in effect on the day before the enactment of the Pension Protection Act of 2006) which—</chapeau><clause class="fontsize10" id="ye91f5b9c-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><content>is required to pay installments under this subsection for a plan year, and</content></clause> <clause class="fontsize10" id="ye91f5b9d-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>has a liquidity shortfall for any quarter during such plan year.</content></clause> </subparagraph> <subparagraph class="fontsize10" id="ye91f5b9e-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="C">“(C) </num><heading class="fontsize10"><inline class="smallCaps">Period of underpayment</inline>.—</heading><content>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.</content></subparagraph> <subparagraph class="fontsize10" id="ye91f5b9f-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="D">“(D) </num><heading class="fontsize10"><inline class="smallCaps">Limitation on increase</inline>.—</heading><content>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.</content></subparagraph> <subparagraph class="fontsize10" id="ye91f81b0-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="E">“(E) </num><heading class="fontsize10"><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>For purposes of this paragraph—</chapeau><clause class="fontsize10" id="ye91f81b1-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><heading class="fontsize10"><inline class="smallCaps">Liquidity shortfall</inline>.—</heading><content>The term ‘<term>liquidity shortfall</term>’ 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.</content></clause> <clause class="fontsize10" id="ye91f81b2-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><heading class="fontsize10"><inline class="smallCaps">Base amount</inline>.—</heading><subclause class="fontsize10" id="ye91f81b3-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658128"><num class="fontsize10" style="-uslm-lc:emspace2" value="I">“(I) </num><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><content>The term ‘<term>base amount</term>’ means, with respect to any quarter, an amount equal to 3 times the sum of the adjusted disbursements from the plan for the 12 months ending on the last day of such quarter.</content></subclause> <subclause class="fontsize10" id="ye91f81b4-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658128"><num class="fontsize10" style="-uslm-lc:emspace2" value="II">“(II) </num><sidenote>Certification.</sidenote><heading class="fontsize10"><inline class="smallCaps">Special rule</inline>.—</heading><content>If the amount determined under subclause (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.</content></subclause> </clause> <clause class="fontsize10" id="ye91f81b6-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="iii">“(iii) </num><heading class="fontsize10"><inline class="smallCaps">Disbursements from the plan</inline>.—</heading><content>The term ‘<term>disbursements from the plan</term>’ means all disbursements from the trust, including purchases of annuities, payments of single sums and other benefits, and administrative expenses.</content></clause> <clause class="fontsize10" id="ye91f81b7-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="iv">“(iv) </num><heading class="fontsize10"><inline class="smallCaps">Adjusted disbursements</inline>.—</heading><chapeau>The term ‘<term>adjusted disbursements</term>’ means disbursements from the plan reduced by the product of—</chapeau><subclause class="fontsize10" id="ye91f81b8-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658128"><num class="fontsize10" style="-uslm-lc:emspace2" value="I">“(I) </num><content>the plan’s funded current liability percentage for the plan year, and<page identifier="/us/stat/128/1130">128 STAT. 1130</page></content></subclause> <subclause class="fontsize10" id="ye91f81b9-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658128"><num class="fontsize10" style="-uslm-lc:emspace2" value="II">“(II) </num><content>the sum of the purchases of annuities, payments of single sums, and such other disbursements as the Secretary shall provide in regulations.</content></subclause> </clause> <clause class="fontsize10" id="ye91f81ba-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="v">“(v) </num><heading class="fontsize10"><inline class="smallCaps">Liquid assets</inline>.—</heading><content>The term ‘<term>liquid assets</term>’ means cash, marketable securities and such other assets as specified by the Secretary in regulations.</content></clause> <clause class="fontsize10" id="ye91f81bb-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="vi">“(vi) </num><heading class="fontsize10"><inline class="smallCaps">Quarter</inline>.—</heading><content>The term ‘<term>quarter</term>’ means, with respect to any required installment, the 3-month period preceding the month in which the due date for such installment occurs.</content></clause> </subparagraph> <subparagraph class="fontsize10" id="ye91f81bc-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="F">“(F) </num><heading class="fontsize10"><inline class="smallCaps">Regulations</inline>.—</heading><content>The Secretary may prescribe such regulations as are necessary to carry out this paragraph.</content></subparagraph> </paragraph> <paragraph class="fontsize10" id="ye91f81bd-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="6">“(6) </num><heading class="fontsize10"><inline class="smallCaps">Fiscal years and short years</inline>.—</heading><subparagraph class="fontsize10" id="ye91f81be-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><sidenote>Applicability.</sidenote><heading class="fontsize10"><inline class="smallCaps">Fiscal years</inline>.—</heading><content>In applying this subsection to a plan year beginning on any date other than January 1, there shall be substituted for the months specified in this subsection, the months which correspond thereto.</content></subparagraph> <subparagraph class="fontsize10" id="ye91f81c0-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><sidenote>Regulations.</sidenote><heading class="fontsize10"><inline class="smallCaps">Short plan year</inline>.—</heading><content>This subsection shall be applied to plan years of less than 12 months in accordance with regulations prescribed by the Secretary.</content></subparagraph> </paragraph> </subsection> <subsection class="firstIndent0 fontsize10" id="ye91f81c2-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="g">“(g) </num><heading class="fontsize10"><inline class="smallCaps">Imposition of Lien Where Failure To Make Required Contributions</inline>.—</heading><paragraph class="fontsize10" id="ye91f81c3-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="1">“(1) </num><sidenote>Applicability.</sidenote><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><chapeau>In the case of a plan to which this section applies, if—</chapeau><subparagraph class="fontsize10" id="ye91f81c5-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><content>any person fails to make a required installment under subsection (f) or any other payment required under this section before the due date for such installment or other payment, and</content></subparagraph> <subparagraph class="fontsize10" id="ye91f81c6-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><content>the unpaid balance of such installment or other payment (including interest), when added to the aggregate unpaid balance of all preceding such installments or other payments for which payment was not made before the due date (including interest), exceeds $1,000,000,</content></subparagraph> <continuation class="firstIndent1 fontsize10" id="xe91f81c7-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122">then there shall be a lien in favor of the plan in the amount determined under paragraph (3) upon all property and rights to property, whether real or personal, belonging to such person and any other person who is a member of the same controlled group of which such person is a member.</continuation></paragraph> <paragraph class="fontsize10" id="ye91f81c8-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="2">“(2) </num><heading class="fontsize10"><inline class="smallCaps">Plans to which subsection applies</inline>.—</heading><content>This subsection shall apply to a CSEC plan for any plan year for which the funded current liability percentage of such plan is less than 100 percent. 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).</content></paragraph> <paragraph class="fontsize10" id="ye91f81c9-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="3">“(3) </num><heading class="fontsize10"><inline class="smallCaps">Amount of lien</inline>.—</heading><chapeau>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)—</chapeau><subparagraph class="fontsize10" id="ye91f81ca-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><content>for plan years beginning after 1987, and</content></subparagraph> <subparagraph class="fontsize10" id="ye920451b-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><content>for which payment has not been made before the due date.</content></subparagraph> </paragraph> <paragraph class="fontsize10" id="ye920451c-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="4">“(4) </num><heading class="fontsize10"><inline class="smallCaps">Notice of failure; lien</inline>.—</heading><subparagraph class="fontsize10" id="ye920451d-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><sidenote>Deadline.</sidenote><heading class="fontsize10"><inline class="smallCaps">Notice of failure</inline>.—</heading><content>A person committing a failure described in paragraph (1) shall notify the Pension <page identifier="/us/stat/128/1131">128 STAT. 1131</page> Benefit Guaranty Corporation of such failure within 10 days of the due date for the required installment or other payment.</content></subparagraph> <subparagraph class="fontsize10" id="ye920451f-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><heading class="fontsize10"><inline class="smallCaps">Period of lien</inline>.—</heading><content>The lien imposed by paragraph (1) shall arise on the due date for the required installment or other payment and shall continue until the last day of the first plan year in which the plan ceases to be described in paragraph (1)(B). Such lien shall continue to run without regard to whether such plan continues to be described in paragraph (2) during the period referred to in the preceding sentence.</content></subparagraph> <subparagraph class="fontsize10" id="ye9204520-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="C">“(C) </num><heading class="fontsize10"><inline class="smallCaps">Certain rules to apply</inline>.—</heading><content>Any amount with respect to which a lien is imposed under paragraph (1) shall be treated as taxes due and owing the United States and rules similar to the rules of subsections (c), (d), and (e) of section 4068 of the Employee Retirement Income Security Act of 1974 shall apply with respect to a lien imposed by subsection (a) and the amount with respect to such lien.</content></subparagraph> </paragraph> <paragraph class="fontsize10" id="ye9204521-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="5">“(5) </num><heading class="fontsize10"><inline class="smallCaps">Enforcement</inline>.—</heading><content>Any lien created under paragraph (1) may be perfected and enforced only by the Pension Benefit Guaranty Corporation, or at the direction of the Pension Benefit Guaranty Corporation, by any contributing employer (or any member of the controlled group of the contributing employer).</content></paragraph> <paragraph class="fontsize10" id="ye9204522-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="6">“(6) </num><heading class="fontsize10"><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>For purposes of this subsection—</chapeau><subparagraph class="fontsize10" id="ye9204523-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><heading class="fontsize10"><inline class="smallCaps">Due date; required installment</inline>.—</heading><content>The terms ‘due date’ and ‘required installment’ have the meanings given such terms by subsection (f), except that in the case of a payment other than a required installment, the due date shall be the date such payment is required to be made under this section.</content></subparagraph> <subparagraph class="fontsize10" id="ye9204524-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><heading class="fontsize10"><inline class="smallCaps">Controlled group</inline>.—</heading><content>The term ‘<term>controlled group</term>’ means any group treated as a single employer under subsections (b), (c), (m), and (o) of section 414.</content></subparagraph> </paragraph> </subsection> <subsection class="firstIndent0 fontsize10" id="ye9204525-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="h">“(h) </num><sidenote>Applicability.</sidenote><heading class="fontsize10"><inline class="smallCaps">Current Liability</inline>.—</heading><chapeau>For purposes of this section—</chapeau><paragraph class="fontsize10" id="ye9204527-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="1">“(1) </num><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><content>The term ‘<term>current liability</term>’ means all liabilities to employees and their beneficiaries under the plan.</content></paragraph> <paragraph class="fontsize10" id="ye9204528-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="2">“(2) </num><heading class="fontsize10"><inline class="smallCaps">Treatment of unpredictable contingent event benefits</inline>.—</heading><subparagraph class="fontsize10" id="ye9204529-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><content>For purposes of paragraph (1), any unpredictable contingent event benefit shall not be taken into account until the event on which the benefit is contingent occurs.</content></subparagraph> <subparagraph class="fontsize10" id="ye920452a-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><heading class="fontsize10"><inline class="smallCaps">Unpredictable contingent event benefit</inline>.—</heading><chapeau>The term ‘<term>unpredictable contingent event benefit</term>’ means any benefit contingent on an event other than—</chapeau><clause class="fontsize10" id="ye920452b-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><content>age, service, compensation, death, or disability, or</content></clause> <clause class="fontsize10" id="ye920452c-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>an event which is reasonably and reliably predictable (as determined by the Secretary).</content></clause> </subparagraph> </paragraph> <paragraph class="fontsize10" id="ye920452d-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="3">“(3) </num><heading class="fontsize10"><inline class="smallCaps">Interest rate and mortality assumptions used</inline>.—</heading><subparagraph class="fontsize10" id="ye920452e-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><heading class="fontsize10"><inline class="smallCaps">Interest rate</inline>.—</heading><content>The rate of interest used to determine current liability under this section shall be the third segment rate determined under section 430(h)(2)(C).</content></subparagraph> <subparagraph class="fontsize10" id="ye920452f-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><heading class="fontsize10"><inline class="smallCaps">Mortality tables</inline>.—</heading><clause class="fontsize10" id="ye9204530-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><heading class="fontsize10"><inline class="smallCaps">Secretarial authority</inline>.—</heading><content>The Secretary may by regulation prescribe mortality tables to be used <page identifier="/us/stat/128/1132">128 STAT. 1132</page> 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.</content></clause> <clause class="fontsize10" id="ye9204531-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><sidenote>Regulations.</sidenote><heading class="fontsize10"><inline class="smallCaps">Periodic review</inline>.—</heading><content>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.</content></clause> </subparagraph> <subparagraph class="fontsize10" id="ye9204533-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="C">“(C) </num><heading class="fontsize10"><inline class="smallCaps">Separate mortality tables for the disabled</inline>.—</heading><chapeau>Notwithstanding subparagraph (B)—</chapeau><clause class="fontsize10" id="ye9204534-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><content>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 subparagraph (B)) 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.</content></clause> <clause class="fontsize10" id="ye9204535-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><heading class="fontsize10"><inline class="smallCaps">Special rule for disabilities occurring after </inline><sidenote>Applicability.</sidenote>1994.—</heading><content>In the case of disabilities occurring in plan years beginning after December 31, 1994, the tables under clause (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.</content></clause> </subparagraph> </paragraph> <paragraph class="fontsize10" id="ye9204537-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="4">“(4) </num><heading class="fontsize10"><inline class="smallCaps">Certain service disregarded</inline>.—</heading><subparagraph class="fontsize10" id="ye9204538-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><content>In the case of a participant to whom this paragraph 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.</content></subparagraph> <subparagraph class="fontsize10" id="ye9204539-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><heading class="fontsize10"><inline class="smallCaps">Applicable percentage</inline>.—</heading><content>For purposes of this subparagraph, the applicable percentage shall be determined as follows:<?GPOvSpace 04?> <xhtml:table xmlns:xhtml="http://www.w3.org/1999/xhtml" class="Quoted fullWidth" style="border-collapse:collapse; border=0; -uslm-lc: 'c2,L0,tp0,p10,10/12,s150,27'; "><xhtml:colgroup><xhtml:col role="stub" style="min-width: 286pt;"/> <xhtml:col role="figure" style="width:139pt ; max-width:139pt;"/> </xhtml:colgroup><xhtml:thead><xhtml:tr class="header" style="font-size:10pt;-uslm-lc:h1"> <xhtml:th style="min-width: 286.0pt; text-align:left; vertical-align:middle;">“If the years of participation are:</xhtml:th><xhtml:th style="width:139.0pt ; max-width:139.0pt; text-align:right; vertical-align:middle;">The applicable percentage is:</xhtml:th></xhtml:tr> </xhtml:thead><xhtml:tbody style="line-height:12pt; font-size:10pt;"><xhtml:tr style="-uslm-lc:I01"><xhtml:td leaderAlign="bottomLine" leaders="yes" stubHierarchy="1" style=" text-align:left; vertical-align:top;"><inline>1</inline></xhtml:td><xhtml:td leaders="no" style=" text-align:right; vertical-align:bottom;">20</xhtml:td></xhtml:tr> <xhtml:tr style="-uslm-lc:I01"><xhtml:td leaderAlign="bottomLine" leaders="yes" stubHierarchy="1" style=" text-align:left; vertical-align:top;"><inline>2</inline></xhtml:td><xhtml:td leaders="no" style=" text-align:right; vertical-align:bottom;">40</xhtml:td></xhtml:tr> <xhtml:tr style="-uslm-lc:I01"><xhtml:td leaderAlign="bottomLine" leaders="yes" stubHierarchy="1" style=" text-align:left; vertical-align:top;"><inline>3</inline></xhtml:td><xhtml:td leaders="no" style=" text-align:right; vertical-align:bottom;">60</xhtml:td></xhtml:tr> <xhtml:tr style="-uslm-lc:I01"><xhtml:td leaderAlign="bottomLine" leaders="yes" stubHierarchy="1" style=" text-align:left; vertical-align:top;"><inline>4</inline></xhtml:td><xhtml:td leaders="no" style=" text-align:right; vertical-align:bottom;">80</xhtml:td></xhtml:tr> <xhtml:tr style="-uslm-lc:I01"><xhtml:td leaderAlign="bottomLine" leaders="yes" stubHierarchy="1" style=" text-align:left; vertical-align:top;"><inline>5 or more</inline></xhtml:td><xhtml:td leaders="no" style=" text-align:right; vertical-align:bottom;">100.</xhtml:td></xhtml:tr> </xhtml:tbody></xhtml:table><?GPOvSpace 04?></content></subparagraph> <subparagraph class="fontsize10" id="ye9206c4a-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="C">“(C) </num><heading class="fontsize10"><inline class="smallCaps">Participants to whom paragraph applies</inline>.—</heading><chapeau>This subparagraph shall apply to any participant who, at the time of becoming a participant—</chapeau><page identifier="/us/stat/128/1133">128 STAT. 1133</page> <clause class="fontsize10" id="ye9206c4b-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><content>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,</content></clause> <clause class="fontsize10" id="ye9206c4c-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>who first becomes a participant under the plan in a plan year beginning after December 31, 1987, and</content></clause> <clause class="fontsize10" id="ye9206c4d-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="iii">“(iii) </num><content>has years of service greater than the minimum years of service necessary for eligibility to participate in the plan.</content></clause> </subparagraph> <subparagraph class="fontsize10" id="ye9206c4e-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="D">“(D) </num><heading class="fontsize10"><inline class="smallCaps">Election</inline>.—</heading><content>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.</content></subparagraph> </paragraph> </subsection> <subsection class="firstIndent0 fontsize10" id="ye9206c4f-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><sidenote>Definition.</sidenote><heading class="fontsize10"><inline class="smallCaps">Funded Current Liability Percentage</inline>.—</heading><chapeau>For purposes of this section, the term ‘<term>funded current liability percentage</term>’ means, with respect to any plan year, the percentage which—</chapeau><paragraph class="fontsize10" id="ye9206c51-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="1">“(1) </num><content>the value of the plan’s assets determined under subsection (c)(2), is of</content></paragraph> <paragraph class="fontsize10" id="ye9206c52-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="2">“(2) </num><content>the current liability under the plan.</content></paragraph> </subsection> <subsection class="firstIndent0 fontsize10" id="ye9206c53-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="j">“(j) </num><heading class="fontsize10"><inline class="smallCaps">Funding Restoration Status</inline>.—</heading><chapeau>Notwithstanding any other provisions of this section—</chapeau><paragraph class="fontsize10" id="ye9206c54-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="1">“(1) </num><sidenote>Definitions.</sidenote><heading class="fontsize10"><inline class="smallCaps">Normal cost payment</inline>.—</heading><subparagraph class="fontsize10" id="ye9206c56-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><chapeau>In the case of a CSEC plan that is in funding restoration status for a plan year, for purposes of section 412, the term ‘<term>accumulated funding deficiency</term>’ means, for such plan year, the greater of—</chapeau><clause class="fontsize10" id="ye9206c57-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><content>the amount described in subsection (a), or</content></clause> <clause class="fontsize10" id="ye9206c58-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>the excess of the normal cost of the plan for the plan year over the amount actually contributed to or under the plan for the plan year.</content></clause> </subparagraph> <subparagraph class="fontsize10" id="ye9206c59-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><heading class="fontsize10"><inline class="smallCaps">Normal cost</inline>.—</heading><content>In the case of a CSEC plan that uses a spread gain funding method, for purposes of this subsection, the term ‘<term>normal cost</term>’ means normal cost as determined under the entry age normal funding method.</content></subparagraph> </paragraph> <paragraph class="fontsize10" id="ye9206c5a-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="2">“(2) </num><heading class="fontsize10"><inline class="smallCaps">Plan amendments</inline>.—</heading><content>In the case of a CSEC plan that is in funding restoration status for a plan year, no amendment to such plan may take effect during such plan year if such amendment has the effect of increasing liabilities of the plan by means of increases in benefits, establishment of new benefits, changing the rate of benefit accrual, or changing the rate at which benefits become nonforfeitable. This paragraph shall not apply to any plan amendment that is required to comply with any applicable <sidenote>Effective date.</sidenote>law. This paragraph shall cease to apply with respect to any plan year, effective as of the first day of the plan year (or if later, the effective date of the amendment) upon payment by the plan sponsor of a contribution to the plan (in addition to any contribution required under this section without regard to this paragraph) in an amount equal to the increase in the funding liability of the plan attributable to the plan amendment.</content></paragraph> <paragraph class="fontsize10" id="ye9206c5c-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="3">“(3) </num><sidenote>Deadline.</sidenote><heading class="fontsize10"><inline class="smallCaps">Funding restoration plan</inline>.—</heading><content>The sponsor of a CSEC plan shall establish a written funding restoration plan within 180 days of the receipt by the plan sponsor of a certification from the plan actuary that the plan is in funding restoration status for a plan year. Such funding restoration plan shall consist of actions that are calculated, based on reasonably anticipated experience and reasonable actuarial assumptions, <page identifier="/us/stat/128/1134">128 STAT. 1134</page> to increase the plan’s funded percentage to 100 percent over a period that is not longer than the greater of 7 years or the shortest amount of time practicable. Such funding restoration plan shall take into account contributions required under this section (without regard to this paragraph).<sidenote>Deadline.Certification.</sidenote> If a plan remains in funding restoration status for 2 or more years, such funding restoration plan shall be updated each year after the 1st such year within 180 days of receipt by the plan sponsor of a certification from the plan actuary that the plan remains in funding restoration status for the plan year.</content></paragraph> <paragraph class="fontsize10" id="ye9206c60-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="4">“(4) </num><sidenote>Deadline.</sidenote><heading class="fontsize10"><inline class="smallCaps">Annual certification by plan actuary</inline>.—</heading><chapeau>Not later than the 90th day of each plan year of a CSEC plan, the plan actuary shall certify to the plan sponsor whether or not the plan is in funding restoration status for the plan year, based on the plan’s funded percentage as of the beginning of the plan year. For this purpose, the actuary may conclusively rely on an estimate of—</chapeau><subparagraph class="fontsize10" id="ye9206c62-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><content>the plan’s funding liability, based on the funding liability of the plan for the preceding plan year and on reasonable actuarial estimates, assumptions, and methods, and</content></subparagraph> <subparagraph class="fontsize10" id="ye9206c63-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><content>the amount of any contributions reasonably anticipated to be made for the preceding plan year.</content></subparagraph> <continuation class="firstIndent1 fontsize10" id="xe9206c64-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122">Contributions described in subparagraph (B) shall be taken into account in determining the plan’s funded percentage as of the beginning of the plan year.</continuation></paragraph> <paragraph class="fontsize10" id="ye9206c65-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="5">“(5) </num><heading class="fontsize10"><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>For purposes of this subsection—</chapeau><subparagraph class="fontsize10" id="ye9206c66-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><heading class="fontsize10"><inline class="smallCaps">Funding restoration status</inline>.—</heading><content>A CSEC plan shall be treated as in funding restoration status for a plan year if the plan’s funded percentage as of the beginning of such plan year is less than 80 percent.</content></subparagraph> <subparagraph class="fontsize10" id="ye9206c67-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><heading class="fontsize10"><inline class="smallCaps">Funded percentage</inline>.—</heading><chapeau>The term ‘<term>funded percentage</term>’ means the ratio (expressed as a percentage) which—</chapeau><clause class="fontsize10" id="ye9206c68-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">“(i) </num><content>the value of plan assets (as determined under subsection (c)(2)), bears to</content></clause> <clause class="fontsize10" id="ye9206c69-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>the plan’s funding liability.</content></clause> </subparagraph> <subparagraph class="fontsize10" id="ye9206c6a-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="C">“(C) </num><heading class="fontsize10"><inline class="smallCaps">Funding liability</inline>.—</heading><content>The term ‘<term>funding liability</term>’ for a plan year means the present value of all benefits accrued or earned under the plan as of the beginning of the plan year, based on the assumptions used by the plan pursuant to this section, including the interest rate described in subsection (b)(5)(A) (without regard to subsection (b)(5)(B)).</content></subparagraph> <subparagraph class="fontsize10" id="ye9206c6b-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="D">“(D) </num><heading class="fontsize10"><inline class="smallCaps">Spread gain funding method</inline>.—</heading><content>The term ‘<term>spread gain funding method</term>’ has the meaning given such term under rules and forms issued by the Secretary.</content></subparagraph> <subparagraph class="fontsize10" id="ye9206c6c-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="E">“(E) </num><heading class="fontsize10"><inline class="smallCaps">Plan sponsor</inline>.—</heading><content>The term ‘<term>plan sponsor</term>’ means, with respect to a CSEC plan, the association, committee, joint board of trustees, or other similar group of representatives of the parties who establish or maintain the plan.”</content></subparagraph> </paragraph> </subsection> </section> </quotedContent>.</content></subsection> <subsection class="firstIndent0 fontsize10" id="ye9206c6d-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tII/s202/b" role="instruction" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="b">(b) </num><heading class="fontsize10"><inline class="smallCaps">CSEC Plans</inline>.—</heading><content>Section 413 of the Internal Revenue Code of 1986<sidenote><ref href="/us/usc/t26/s413">26 USC 413</ref>.</sidenote> <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following new subsection:<quotedContent><subsection class="firstIndent0 fontsize10" id="ye920937f-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="d">“(d) </num><heading class="fontsize10"><inline class="smallCaps">CSEC Plans</inline>.—</heading><chapeau>Notwithstanding any other provision of this section, in the case of a CSEC plan—</chapeau><page identifier="/us/stat/128/1135">128 STAT. 1135</page> <paragraph class="fontsize10" id="ye9209380-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="1">“(1) </num><heading class="fontsize10"><inline class="smallCaps">Funding</inline>.—</heading><content>The requirements of section 412 shall be determined as if all participants in the plan were employed by a single employer.</content></paragraph> <paragraph class="fontsize10" id="ye9209381-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="2">“(2) </num><heading class="fontsize10"><inline class="smallCaps">Application of provisions</inline>.—</heading><content>Paragraphs (1), (2), (3), and (5) of subsection (c) shall apply.</content></paragraph> <paragraph class="fontsize10" id="ye9209382-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="3">“(3) </num><heading class="fontsize10"><inline class="smallCaps">Deduction limitations</inline>.—</heading><content>Each applicable limitation provided by section 404(a) shall be determined as if all participants in the plan were employed by a single employer. The amounts contributed to or under the plan by each employer who maintains the plan (for the portion of the taxable year included within a plan year) shall be considered not to exceed such applicable limitation if the anticipated employer contributions for such plan year of all employers (determined in a reasonable manner not inconsistent with regulations prescribed by the Secretary) do not exceed such limitation. If<sidenote>Determination.Regulations.</sidenote> such anticipated contributions exceed such limitation, the portion of each such employer’s contributions which is not deductible under section 404 shall be determined in accordance with regulations prescribed by the Secretary.</content></paragraph> <paragraph class="fontsize10" id="ye9209385-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="4">“(4) </num><heading class="fontsize10"><inline class="smallCaps">Allocations</inline>.—</heading><content>Allocations of amounts under paragraph (3) and subsection (c)(5) among the employers maintaining the plan shall not be inconsistent with the regulations prescribed for this purpose by the Secretary.”</content></paragraph> </subsection> </quotedContent>.</content></subsection> <subsection class="firstIndent0 fontsize10" id="ye9209386-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tII/s202/c" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="c">(c) </num><heading class="fontsize10"><inline class="smallCaps">Separate Rules for CSEC Plans</inline>.—</heading><paragraph class="fontsize10" id="ye9209387-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tII/s202/c/1" role="instruction" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="1">(1) </num><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><content>Paragraph (2) of section 412(a) of the Internal Revenue Code of 1986<sidenote><ref href="/us/usc/t26/s412">26 USC 412</ref>.</sidenote> <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="delete">striking</amendingAction> “<quotedText>and</quotedText>” at the end of subparagraph (B), by <amendingAction type="delete">striking</amendingAction> the period at the end of subparagraph (C) and <amendingAction type="insert">inserting</amendingAction> “<quotedText>, and</quotedText>”, and by <amendingAction type="insert">inserting</amendingAction> at the end thereof the following new subparagraph:<quotedContent><subparagraph class="fontsize10" id="ye9209389-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="D">“(D) </num><content>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.”</content></subparagraph> </quotedContent>.</content></paragraph> <paragraph class="fontsize10" id="ye920938a-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tII/s202/c/2" role="instruction" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="2">(2) </num><heading class="fontsize10"><inline class="smallCaps">Conforming amendments</inline>.—</heading><chapeau>Section 412 of such Code <amendingAction type="amend">is amended</amendingAction>—</chapeau><subparagraph class="fontsize10" id="ye920938b-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tII/s202/c/2/A" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">(A) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>multiemployer plan</quotedText>” 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 <amendingAction type="insert">inserting</amendingAction> “<quotedText>multiemployer plan or a CSEC plan</quotedText>”,</content></subparagraph> <subparagraph class="fontsize10" id="ye920938c-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tII/s202/c/2/B" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">(B) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>430(j)</quotedText>” in paragraph (1) of subsection (b) and <amendingAction type="insert">inserting</amendingAction> “<quotedText>430(j) or under section 433(f)</quotedText>”,</content></subparagraph> <subparagraph class="fontsize10" id="ye920938d-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tII/s202/c/2/C" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="C">(C)</num><clause class="inline" id="ye920938e-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tII/s202/c/2/C/i"><num value="i">(i) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>and</quotedText>” at the end of clause (i) of subsection (c)(1)(B),</content></clause> <clause class="indentUp0 fontsize10" id="ye920938f-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tII/s202/c/2/C/ii" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">(ii) </num><content>by <amendingAction type="delete">striking</amendingAction> the period at the end of clause (ii) of subsection (c)(1)(B) and <amendingAction type="insert">inserting</amendingAction> “<quotedText>, and</quotedText>”, and</content></clause> <clause class="indentUp0 fontsize10" id="ye9209390-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tII/s202/c/2/C/iii" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="iii">(iii) </num><content>by <amendingAction type="insert">inserting</amendingAction> the following new clause after clause (ii) of subsection (c)(1)(B):<quotedContent><subsection class="indentUp1 fontsize10" id="ye920baa1-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="iii">“(iii)</num><content> 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).”</content></subsection> </quotedContent>,</content></clause> </subparagraph> <subparagraph class="fontsize10" id="ye920baa2-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tII/s202/c/2/D" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="D">(D) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>under paragraph (1)</quotedText>” in clause (i) of subsection (c)(4)(A) and <amendingAction type="insert">inserting</amendingAction> “<quotedText>under paragraph (1) or for granting an extension under section 433(d)</quotedText>”,<page identifier="/us/stat/128/1136">128 STAT. 1136</page></content></subparagraph> <subparagraph class="fontsize10" id="ye920baa3-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tII/s202/c/2/E" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="E">(E) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>waiver under this subsection</quotedText>” in subparagraph (B) of subsection (c)(4) and <amendingAction type="insert">inserting</amendingAction> “<quotedText>waiver under this subsection or an extension under 433(d)</quotedText>”,</content></subparagraph> <subparagraph class="fontsize10" id="ye920baa4-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tII/s202/c/2/F" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="F">(F) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>waiver or modification</quotedText>” in subclause (I) of subsection (c)(4)(B)(i) and <amendingAction type="insert">inserting</amendingAction> “<quotedText>waiver, modification, or extension</quotedText>”,</content></subparagraph> <subparagraph class="fontsize10" id="ye920baa5-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tII/s202/c/2/G" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="G">(G) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>waivers</quotedText>” in the heading of subsection (c)(4)(C) and of clause (ii) of subsection (c)(4)(C) and <amendingAction type="insert">inserting</amendingAction> “<quotedText>waivers or extensions</quotedText>”,</content></subparagraph> <subparagraph class="fontsize10" id="ye920baa6-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tII/s202/c/2/H" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="H">(H) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>section 431(d)</quotedText>” in subparagraph (A) of subsection (c)(7) and in paragraph (2) of subsection (d) and <amendingAction type="insert">inserting</amendingAction> “<quotedText>section 431(d) or section 433(d)</quotedText>”,</content></subparagraph> <subparagraph class="fontsize10" id="ye920baa7-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tII/s202/c/2/I" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="I">(I) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>and</quotedText>” at the end of subclause (I) of subsection (c)(4)(C)(i) and <amendingAction type="insert">inserting</amendingAction> “<quotedText>or the accumulated funding deficiency under section 433, whichever is applicable,</quotedText>”,</content></subparagraph> <subparagraph class="fontsize10" id="ye920baa8-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tII/s202/c/2/J" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="J">(J) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>430(e)(2),</quotedText>” in subclause (II) of subsection (c)(4)(C)(i) and <amendingAction type="insert">inserting</amendingAction> “<quotedText>430(e)(2) or 433(b)(2)(C), whichever is applicable, and</quotedText>”,</content></subparagraph> <subparagraph class="fontsize10" id="ye920baa9-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tII/s202/c/2/K" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="K">(K) </num><content>by <amendingAction type="add">adding</amendingAction> immediately after subclause (II) of subsection (c)(4)(C)(i) the following new subclause:<quotedContent><subclause class="indentUp2 fontsize10" id="ye920baaa-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658128"><num class="fontsize10" style="-uslm-lc:emspace2" value="III">“(III) </num><content>the total amounts not paid by reason of an extension in effect under section 433(d),”</content></subclause> </quotedContent>, and</content></subparagraph> <subparagraph class="fontsize10" id="ye920baab-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tII/s202/c/2/L" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="L">(L) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>for waivers of</quotedText>” in clause (ii) of subsection (c)(4)(C) and <amendingAction type="insert">inserting</amendingAction> “<quotedText>for waivers or extensions with respect to</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="fontsize10" id="ye920baac-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tII/s202/c/3" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="3">(3) </num><heading class="fontsize10"><inline class="smallCaps">Benefit restrictions</inline>.—</heading><subparagraph class="fontsize10" id="ye920baad-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tII/s202/c/3/A" role="instruction" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">(A) </num><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><content>Paragraph (29) of section 401(a) of such Code<sidenote><ref href="/us/usc/t26/s401">26 USC 401</ref>.</sidenote> <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="delete">striking</amendingAction> “<quotedText>multiemployer plan</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>multiemployer plan or a CSEC plan</quotedText>”.</content></subparagraph> <subparagraph class="fontsize10" id="ye920baaf-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tII/s202/c/3/B" role="instruction" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">(B) </num><heading class="fontsize10"><inline class="smallCaps">Conforming change</inline>.—</heading><content>Subsection (a) of section 436 of such Code<sidenote><ref href="/us/usc/t26/s436">26 USC 436</ref>.</sidenote> <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="delete">striking</amendingAction> “<quotedText>single-employer plan</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>single-employer plan (other than a CSEC plan)</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="fontsize10" id="ye920bab1-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tII/s202/c/4" role="instruction" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="4">(4) </num><heading class="fontsize10"><inline class="smallCaps">Benefit increases</inline>.—</heading><content>Subparagraph (C) of section 401(a)(33) of such Code <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="delete">striking</amendingAction> “<quotedText>multiemployer plans</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>multiemployer plans or CSEC plans</quotedText>”.</content></paragraph> <paragraph class="fontsize10" id="ye920bab2-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tII/s202/c/5" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="5">(5) </num><heading class="fontsize10"><inline class="smallCaps">Liquidity shortfalls</inline>.—</heading><subparagraph class="fontsize10" id="ye920bab3-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tII/s202/c/5/A" role="instruction" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">(A) </num><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><content>Subparagraph (A) of section 401(a)(32) of such Code <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="delete">striking</amendingAction> “<quotedText>430(j)(4)</quotedText>” each place it appears and <amendingAction type="insert">inserting</amendingAction> “<quotedText>430(j)(4) or 433(f)(5)</quotedText>”.</content></subparagraph> <subparagraph class="fontsize10" id="ye920bab4-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tII/s202/c/5/B" role="instruction" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">(B) </num><heading class="fontsize10"><inline class="smallCaps">Period of shortfall</inline>.—</heading><content>Subparagraph (C) of section 401(a)(32) of such Code <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="delete">striking</amendingAction> “<quotedText>430(j)(3) by reason of section 430(j)(4)(A) thereof</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>430(j)(3) or 433(f) by reason of section 430(j)(4)(A) or 433(f)(5), respectively</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="fontsize10" id="ye920bab5-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tII/s202/c/6" role="instruction" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="6">(6) </num><heading class="fontsize10"><inline class="smallCaps">Deduction limits</inline>.—</heading><content>Subsection (o) of section 404 of such Code<sidenote><ref href="/us/usc/t26/s404">26 USC 404</ref>.</sidenote> <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following new paragraph:<quotedContent><paragraph class="indentUp0 fontsize10" id="ye920bab7-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="8">“(8) </num><sidenote>Applicability.</sidenote><heading class="fontsize10"><inline class="smallCaps">CSEC plans</inline>.—</heading><content>Solely for purposes of this subsection, a CSEC plan shall be treated as though section 430 applied to such plan and the minimum required contribution for any plan year shall be the amount described in section 412(a)(2)(D).”</content></paragraph> </quotedContent>.<page identifier="/us/stat/128/1137">128 STAT. 1137</page></content></paragraph> <paragraph class="fontsize10" id="ye920bab9-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tII/s202/c/7" role="instruction" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="7">(7) </num><heading class="fontsize10"><inline class="smallCaps">Section 420</inline>.—</heading><content>Paragraph (5) of section 420(e) of such Code<sidenote><ref href="/us/usc/t26/s420">26 USC 420</ref>.</sidenote> <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="delete">striking</amendingAction> “<quotedText>section 430</quotedText>” each place it appears and <amendingAction type="insert">inserting</amendingAction> “<quotedText>sections 430 and 433</quotedText>”.</content></paragraph> <paragraph class="fontsize10" id="ye920babb-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tII/s202/c/8" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="8">(8) </num><heading class="fontsize10"><inline class="smallCaps">Coordination with section 4971</inline>.—</heading><subparagraph class="fontsize10" id="ye920babc-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tII/s202/c/8/A" role="instruction" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">(A) </num><content>Subsection (a) of section 4971 of such Code<sidenote><ref href="/us/usc/t26/s4971">26 USC 4971</ref>.</sidenote> <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="delete">striking</amendingAction> “<quotedText>and</quotedText>” at the end of paragraph (1), by <amendingAction type="delete">striking</amendingAction> the period at the end of paragraph (2) and <amendingAction type="insert">inserting</amendingAction> “<quotedText>, and</quotedText>”, and by <amendingAction type="add">adding</amendingAction> at the end thereof the following new paragraph:<quotedContent><paragraph class="indentDown1 fontsize10" id="ye920babe-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="3">“(3) </num><content>in the case of a CSEC plan, 10 percent of the CSEC accumulated funding deficiency as of the end of the plan year ending with or within the taxable year.”</content></paragraph> </quotedContent>.</content></subparagraph> <subparagraph class="fontsize10" id="ye920babf-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tII/s202/c/8/B" role="instruction" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">(B) </num><chapeau>Subsection (b) of section 4971 of such Code <amendingAction type="amend">is amended</amendingAction>—</chapeau><clause class="fontsize10" id="ye920e1d0-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tII/s202/c/8/B/i" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">(i) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>or</quotedText>” at the end of paragraph (1), by <amendingAction type="add">adding</amendingAction> “<quotedText>or</quotedText>” at the end of paragraph (2), and by <amendingAction type="insert">inserting</amendingAction> immediately after paragraph (2) the following new paragraph:<quotedContent><paragraph class="indentDown2 fontsize10" id="ye920e1d1-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="3">“(3) </num><content>a tax is imposed under subsection (a)(3) on any CSEC accumulated funding deficiency and the CSEC accumulated funding deficiency is not corrected within the taxable period,”</content></paragraph> </quotedContent>, and</content></clause> <clause class="fontsize10" id="ye920e1d2-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tII/s202/c/8/B/ii" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">(ii) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>minimum required contributions or accumulated funding deficiency</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>minimum required contribution, accumulated funding deficiency, or CSEC accumulated funding deficiency</quotedText>”.</content></clause> </subparagraph> <subparagraph class="fontsize10" id="ye920e1d3-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tII/s202/c/8/C" role="instruction" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="C">(C) </num><chapeau>Subsection (c) of section 4971 of such Code <amendingAction type="amend">is amended</amendingAction>—</chapeau><clause class="fontsize10" id="ye920e1d4-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tII/s202/c/8/C/i" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">(i) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>accumulated funding deficiency</quotedText>” each place it appears in paragraph (2) and <amendingAction type="insert">inserting</amendingAction> “<quotedText>accumulated funding deficiency or CSEC accumulated funding deficiency</quotedText>”,</content></clause> <clause class="fontsize10" id="ye920e1d5-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tII/s202/c/8/C/ii" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">(ii) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>accumulated funding deficiency or unpaid minimum required contribution</quotedText>” each place it appears in paragraph (3) and <amendingAction type="insert">inserting</amendingAction> “<quotedText>accumulated funding deficiency, CSEC accumulated funding deficiency, or unpaid minimum required contribution</quotedText>”, and</content></clause> <clause class="fontsize10" id="ye920e1d6-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tII/s202/c/8/C/iii" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="iii">(iii) </num><content>by <amendingAction type="add">adding</amendingAction> at the end the following new paragraph:<quotedContent><paragraph class="indentDown2 fontsize10" id="ye920e1d7-e871-11f0-bc57-ad3ac4b1618c" role="definitions" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="5">“(5) </num><sidenote>Definition.</sidenote><heading class="fontsize10"><inline class="smallCaps">CSEC accumulated funding deficiency</inline>.—</heading><content>The term ‘<term>CSEC accumulated funding deficiency</term>’ means the accumulated funding deficiency determined under section 433.”</content></paragraph> </quotedContent>.</content></clause> </subparagraph> <subparagraph class="fontsize10" id="ye920e1d9-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tII/s202/c/8/D" role="instruction" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="D">(D) </num><content>Paragraph (1) of section 4971(d) of such Code <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="delete">striking</amendingAction> “<quotedText>accumulated funding deficiency or unpaid minimum required contribution</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>accumulated funding deficiency, CSEC accumulated funding deficiency, or unpaid minimum required contribution</quotedText>”.</content></subparagraph> <subparagraph class="fontsize10" id="ye920e1da-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tII/s202/c/8/E" role="instruction" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="E">(E) </num><chapeau>Subsection (f) of section 4971 of such Code <amendingAction type="amend">is amended</amendingAction>—</chapeau><clause class="fontsize10" id="ye920e1db-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tII/s202/c/8/E/i" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="i">(i) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>430(j)(4)</quotedText>” in paragraph (1) and <amendingAction type="insert">inserting</amendingAction> “<quotedText>430(j)(4) or 433(f)</quotedText>”,</content></clause> <clause class="fontsize10" id="ye920e1dc-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tII/s202/c/8/E/ii" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="ii">(ii) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>430(j)</quotedText>” in paragraph (1)(B) and <amendingAction type="insert">inserting</amendingAction> “<quotedText>430(j) or 433(f), whichever is applicable</quotedText>”, and</content></clause> <clause class="fontsize10" id="ye920e1dd-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tII/s202/c/8/E/iii" style="-uslm-lc:I658126"><num class="fontsize10" style="-uslm-lc:emspace2" value="iii">(iii) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>412(m)(5)</quotedText>” in paragraph (3)(A) and <amendingAction type="insert">inserting</amendingAction> “<quotedText>430(j) or 433(f), whichever is applicable</quotedText>”.<page identifier="/us/stat/128/1138">128 STAT. 1138</page></content></clause> </subparagraph> </paragraph> <paragraph class="fontsize10" id="ye920e1de-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tII/s202/c/9" role="instruction" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="9">(9) </num><heading class="fontsize10"><inline class="smallCaps">Excise tax on failure to adopt funding restoration plan</inline>.—</heading><content>Section 4971 of such Code<sidenote><ref href="/us/usc/t26/s4971">26 USC 4971</ref>.</sidenote> <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="redesignate">redesignating</amendingAction> subsection (h) as subsection (i), and by <amendingAction type="insert">inserting</amendingAction> after subsection (g) the following new subsection:<quotedContent><subsection class="indentDown1 firstIndent0 fontsize10" id="ye92108f0-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="h">“(h) </num><heading class="fontsize10"><inline class="smallCaps">Failure of a CSEC Plan Sponsor To Adopt Funding Restoration Plan</inline>.—</heading><paragraph class="fontsize10" id="ye92108f1-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="1">“(1) </num><sidenote>Taxes.</sidenote><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><content>In the case of a CSEC plan that is in funding restoration status (within the meaning of section 433(j)(5)(A)), there is hereby imposed a tax on the failure of such plan to adopt a funding restoration plan within the time prescribed under section 433(j)(3).</content></paragraph> <paragraph class="fontsize10" id="ye92108f3-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="2">“(2) </num><sidenote>Time periods.</sidenote><heading class="fontsize10"><inline class="smallCaps">Amount of tax</inline>.—</heading><content>The amount of the tax imposed under paragraph (1) with respect to any plan sponsor for any taxable year shall be the amount equal to $100 multiplied by the number of days during the taxable year which are included in the period beginning on the day following the close of the 180-day period described in section 433(j)(3) and ending on the day on which the funding restoration plan is adopted.</content></paragraph> <paragraph class="fontsize10" id="ye92108f5-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="3">“(3) </num><heading class="fontsize10"><inline class="smallCaps">Waiver by secretary</inline>.—</heading><content>In the case of a failure described in paragraph (1) which the Secretary determines is due to reasonable cause and not to willful neglect, the Secretary may waive a portion or all of the tax imposed by such paragraph.</content></paragraph> <paragraph class="fontsize10" id="ye92108f6-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="4">“(4) </num><heading class="fontsize10"><inline class="smallCaps">Liability for tax</inline>.—</heading><content>The tax imposed by paragraph (1) shall be paid by the plan sponsor (within the meaning of section 433(j)(5)(E)).”</content></paragraph> </subsection> </quotedContent>.</content></paragraph> <paragraph class="fontsize10" id="ye92108f7-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tII/s202/c/10" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="10">(10) </num><heading class="fontsize10"><inline class="smallCaps">Reporting</inline>.—</heading><subparagraph class="fontsize10" id="ye92108f8-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tII/s202/c/10/A" role="instruction" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">(A) </num><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><content>Paragraph (2) of section 6059(b) of such Code<sidenote><ref href="/us/usc/t26/s6059">26 USC 6059</ref>.</sidenote> <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="delete">striking</amendingAction> “<quotedText>430,</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>430, the accumulated funding deficiency under section 433,</quotedText>”.</content></subparagraph> <subparagraph class="fontsize10" id="ye92108fa-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tII/s202/c/10/B" role="instruction" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">(B) </num><heading class="fontsize10"><inline class="smallCaps">Assumptions</inline>.—</heading><content>Subparagraph (B) of section 6059(b)(3) of such Code <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="delete">striking</amendingAction> “<quotedText>430(h)(1) or 431(c)(3)</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>430(h)(1), 431(c)(3), or 433(c)(3)</quotedText>”.</content></subparagraph> </paragraph> </subsection> </section> <section id="d355206e5489" identifier="/us/pl/113/97/tII/s203" style="-uslm-lc:I658143"><num class="fontsize12" value="203">SEC. 203. </num><heading>ELECTION NOT TO BE TREATED AS A CSEC PLAN.</heading><subsection class="firstIndent0 fontsize10" id="ye921300b-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tII/s203/a" role="instruction" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="a">(a) </num><heading class="fontsize10"><inline class="smallCaps">In General</inline>.—</heading><content>Section 414(y) of the Internal Revenue Code of 1986,<sidenote><ref href="/us/usc/t26/s414">26 USC 414</ref>.</sidenote> as added by section 201, <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following new paragraph:<quotedContent><paragraph class="fontsize10" id="ye921571d-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658122"><num class="fontsize10" style="-uslm-lc:emspace2" value="3">“(3) </num><heading class="fontsize10"><inline class="smallCaps">Election</inline>.—</heading><subparagraph class="fontsize10" id="ye921571e-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="A">“(A) </num><sidenote>Deadline.</sidenote><heading class="fontsize10"><inline class="smallCaps">In general</inline>.—</heading><content>If a plan falls within the definition of a CSEC plan under this subsection (without regard to this paragraph), such plan shall be a CSEC plan unless the plan sponsor elects not later than the close of the first plan year of the plan beginning after December 31, 2013, not to be treated as a CSEC plan. An election under the preceding sentence shall take effect for such plan year and, once made, may be revoked only with the consent of the Secretary.</content></subparagraph> <subparagraph class="fontsize10" id="ye9215720-e871-11f0-bc57-ad3ac4b1618c" style="-uslm-lc:I658124"><num class="fontsize10" style="-uslm-lc:emspace2" value="B">“(B) </num><heading class="fontsize10"><inline class="smallCaps">Special rule</inline>.—</heading><content>If a plan described in subparagraph (A) is treated as a CSEC plan, section 104 of the Pension Protection Act of 2006, as amended by the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010, shall cease to apply to such plan as of the first date as of which such plan is treated as a CSEC plan.”</content></subparagraph> </paragraph> </quotedContent>.<page identifier="/us/stat/128/1139">128 STAT. 1139</page></content></subsection> <subsection class="firstIndent0 fontsize10" id="ye9215721-e871-11f0-bc57-ad3ac4b1618c" identifier="/us/pl/113/97/tII/s203/b" style="-uslm-lc:I658120"><num class="fontsize10" style="-uslm-lc:emspace2" value="b">(b) </num><sidenote><ref href="/us/usc/t26/s414">26 USC 414 note</ref>.</sidenote><heading class="fontsize10"><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by this section shall apply as of the date of enactment of this Act.</content></subsection> </section> Approved April 7, 2014.