Cooperative and Small Employer Charity Pension Flexibility ActPublic Law 113–97Cooperative and Small Employer Charity Pension Flexibility Act97113–97Statute CompilationUnited States House of RepresentativesOffice of the Legislative Counseltext/xmlENPursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.GPO Statute Compilations USLM converter, version 20210527.12021-10-15Cooperative and Small Employer Charity Pension Flexibility Act108921132014-04-07Cooperative and Small Employer Charity Pension Flexibility Act[(Public Law 113–97)][This law has not been amended][Currency: This publication is a compilation of the text of Public Law 113-97. It was last amended by the public law listed in the As Amended Through note above and below at the bottom of each page of the pdf version and reflects current law through the date of the enactment of the public law listed at https://www.govinfo.gov/app/collection/comps/][Note: While this publication does not represent an official version of any Federal statute, substantial efforts have been made to ensure the accuracy of its contents. The official version of Federal law is found in the United States Statutes at Large and in the United States Code. The legal effect to be given to the Statutes at Large and the United States Code is established by statute (1 U.S.C. 112, 204).]AN ACTTo 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.Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,SECTION 1. SHORT TITLE; TABLE OF CONTENTS. (a) [29 U.S.C. 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.Sec. 2.Sec. 3.TITLE I—Sec. 101.Sec. 102.Sec. 103.Sec. 104.Sec. 105.TITLE II—Sec. 201.Sec. 202.Sec. 203.SEC. 2. [29 U.S.C. 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 U.S.C. 401 note]EFFECTIVE DATE. Unless otherwise specified in this Act, the provisions of this Act shall apply to years beginning after December 31, 2013.
<num style="-uslm-dtd:enum" value="I">TITLE I—</num><heading style="-uslm-dtd:header">AMENDMENTS TO EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974 AND OTHER PROVISIONS </heading>
<section style="-uslm-dtd:section" identifier="/us/sComp/113/97/tI/s101" styleType="OLC">
<num style="-uslm-dtd:enum" value="101">SEC. 101. </num><heading style="-uslm-dtd:header">DEFINITION OF COOPERATIVE AND SMALL EMPLOYER CHARITY PENSION PLANS. </heading>
<content style="-uslm-dtd:text" class="block">Section 210 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1060) is amended by adding at the end the following new subsection:<quotedContent style="-uslm-dtd:quoted-block">
<subsection style="-uslm-dtd:subsection" styleType="OLC">
<num style="-uslm-dtd:enum" value="f">“(f) </num><heading style="-uslm-dtd:header">Cooperative and Small Employer Charity Pension Plans. </heading>
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="1">“(1) </num><heading style="-uslm-dtd:header">In general. </heading><chapeau style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><chapeau style="-uslm-dtd:text">to which section 104 of the Pension Protection Act of 2006 applies, without regard to—</chapeau>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="i">“(i) </num><content style="-uslm-dtd:text">section 104(a)(2) of such Act;</content>
</clause>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="ii">“(ii) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="iii">“(iii) </num><content style="-uslm-dtd:text">paragraph (3)(B); or</content>
</clause>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="2">“(2) </num><heading style="-uslm-dtd:header">Aggregation. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:section" identifier="/us/sComp/113/97/tI/s102" styleType="OLC">
<num style="-uslm-dtd:enum" value="102">SEC. 102. </num><heading style="-uslm-dtd:header">FUNDING RULES APPLICABLE TO COOPERATIVE AND SMALL EMPLOYER CHARITY PENSION PLANS. </heading>
<subsection style="-uslm-dtd:subsection" identifier="/us/sComp/113/97/tI/s102/a" styleType="OLC">
<num style="-uslm-dtd:enum" value="a">(a) </num><heading style="-uslm-dtd:header">In General.—</heading><content style="-uslm-dtd:text">Part 3 of title I of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1081 et seq.) is amended by adding at the end the following new section:<quotedContent style="-uslm-dtd:quoted-block">
<section style="-uslm-dtd:section" styleType="OLC">
<num style="-uslm-dtd:enum" value="306">“SEC. 306. </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t29/s1085a">29 U.S.C. 1085a</ref><b>]</b> </editorialNote><heading style="-uslm-dtd:header">MINIMUM FUNDING STANDARDS </heading>
<subsection style="-uslm-dtd:subsection" styleType="OLC">
<num style="-uslm-dtd:enum" value="a">“(a) </num><heading style="-uslm-dtd:header">General Rule. </heading><content style="-uslm-dtd:text">For purposes of section 302, the term ‘<quotedText style="-uslm-dtd:quote">accumulated funding deficiency</quotedText>’ 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 style="-uslm-dtd:subsection" styleType="OLC">
<num style="-uslm-dtd:enum" value="b">“(b) </num><heading style="-uslm-dtd:header">Funding Standard Account. </heading>
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="1">“(1) </num><heading style="-uslm-dtd:header">Account required. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="2">“(2) </num><heading style="-uslm-dtd:header">Charges to account. </heading><chapeau style="-uslm-dtd:text">For a plan year, the funding standard account shall be charged with the sum of—</chapeau>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><content style="-uslm-dtd:text">the normal cost of the plan for the plan year,</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><chapeau style="-uslm-dtd:text">the amounts necessary to amortize in equal annual installments (until fully amortized)—</chapeau>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="i">“(i) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="ii">“(ii) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="iii">“(iii) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="iv">“(iv) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="v">“(v) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="C">“(C) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="D">“(D) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="E">“(E) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="3">“(3) </num><heading style="-uslm-dtd:header">Credits to account. </heading><chapeau style="-uslm-dtd:text">For a plan year, the funding standard account shall be credited with the sum of—</chapeau>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><content style="-uslm-dtd:text">the amount considered contributed by the employer to or under the plan for the plan year,</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><chapeau style="-uslm-dtd:text">the amount necessary to amortize in equal annual installments (until fully amortized)—</chapeau>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="i">“(i) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="ii">“(ii) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="iii">“(iii) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="C">“(C) </num><content style="-uslm-dtd:text">the amount of the waived funding deficiency (within the meaning of section 302(c)(3)) for the plan year, and</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="D">“(D) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="4">“(4) </num><heading style="-uslm-dtd:header">Combining and offsetting amounts to be amortized. </heading><chapeau style="-uslm-dtd:text">Under 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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="5">“(5) </num><heading style="-uslm-dtd:header">Interest. </heading>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><heading style="-uslm-dtd:header">In general. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><heading style="-uslm-dtd:header">Exception. </heading><chapeau style="-uslm-dtd:text">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 style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="i">“(i) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="ii">“(ii) </num><content style="-uslm-dtd:text">the rate of interest determined under subparagraph (A).</content>
</clause>
</subparagraph>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="6">“(6) </num><heading style="-uslm-dtd:header">Amortization schedules in effect. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:subsection" styleType="OLC">
<num style="-uslm-dtd:enum" value="c">“(c) </num><heading style="-uslm-dtd:header">Special Rules. </heading>
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="1">“(1) </num><heading style="-uslm-dtd:header">Determinations to be made under funding method. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="2">“(2) </num><heading style="-uslm-dtd:header">Valuation of assets. </heading>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><heading style="-uslm-dtd:header">In general. </heading><content style="-uslm-dtd:text">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 of the Treasury.</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><heading style="-uslm-dtd:header">Dedicated bond portfolio. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="3">“(3) </num><heading style="-uslm-dtd:header">Actuarial assumptions must be reasonable. </heading><chapeau style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><content style="-uslm-dtd:text">each of which is reasonable (taking into account the experience of the plan and reasonable expectations), and</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><content style="-uslm-dtd:text">which, in combination, offer the actuary’s best estimate of anticipated experience under the plan.</content>
</subparagraph>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="4">“(4) </num><heading style="-uslm-dtd:header">Treatment of certain changes as experience gain or loss. </heading><chapeau style="-uslm-dtd:text">For purposes of this section, if—</chapeau>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><content style="-uslm-dtd:text">a change in benefits under the Social Security Act or in other retirement benefits created under Federal or State law, or</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><content style="-uslm-dtd:text">a change in the definition of the term ‘<quotedText style="-uslm-dtd:quote">wages</quotedText>’ 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 style="-uslm-dtd:continuation-text" role="paragraph">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 style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="5">“(5) </num><heading style="-uslm-dtd:header">Funding method and plan year. </heading>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><heading style="-uslm-dtd:header">Funding methods available. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><heading style="-uslm-dtd:header">Changes. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="C">“(C) </num><heading style="-uslm-dtd:header">Approval required for certain changes in assumptions by certain single-employer plans subject to additional funding requirement. </heading>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="i">“(i) </num><heading style="-uslm-dtd:header">In general. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="ii">“(ii) </num><heading style="-uslm-dtd:header">Plans to which subparagraph applies. </heading><chapeau style="-uslm-dtd:text">This subparagraph shall apply to a plan only if—</chapeau>
<subclause style="-uslm-dtd:subclause" styleType="OLC">
<num style="-uslm-dtd:enum" value="I">“(I) </num><content style="-uslm-dtd:text">the plan is a CSEC plan,</content>
</subclause>
<subclause style="-uslm-dtd:subclause" styleType="OLC">
<num style="-uslm-dtd:enum" value="II">“(II) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:subclause" styleType="OLC">
<num style="-uslm-dtd:enum" value="III">“(III) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="6">“(6) </num><heading style="-uslm-dtd:header">Full funding. </heading><chapeau style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><content style="-uslm-dtd:text">the funding standard account shall be credited with the amount of such excess, and</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="7">“(7) </num><heading style="-uslm-dtd:header">Full-funding limitation. </heading><chapeau style="-uslm-dtd:text">For purposes of paragraph (6), the term ‘<quotedText style="-uslm-dtd:quote">full-funding limitation</quotedText>’ means the excess (if any) of—</chapeau>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><chapeau style="-uslm-dtd:text">the lesser of—</chapeau>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="i">“(i) </num><content style="-uslm-dtd:text">the fair market value of the plan’s assets, or</content>
</clause>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="ii">“(ii) </num><content style="-uslm-dtd:text">the value of such assets determined under paragraph (2).</content>
</clause>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="C">“(C) </num><heading style="-uslm-dtd:header">Minimum amount. </heading>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="i">“(i) </num><heading style="-uslm-dtd:header">In general. </heading><chapeau style="-uslm-dtd:text">In no event shall the full-funding limitation determined under subparagraph (A) be less than the excess (if any) of—</chapeau>
<subclause style="-uslm-dtd:subclause" styleType="OLC">
<num style="-uslm-dtd:enum" value="I">“(I) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:subclause" styleType="OLC">
<num style="-uslm-dtd:enum" value="II">“(II) </num><content style="-uslm-dtd:text">the value of the plan’s assets determined under paragraph (2).</content>
</subclause>
</clause>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="ii">“(ii) </num><heading style="-uslm-dtd:header">Assets. </heading><content style="-uslm-dtd:text">For purposes of clause (i), assets shall not be reduced by any credit balance in the funding standard account.</content>
</clause>
</subparagraph>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="8">“(8) </num><heading style="-uslm-dtd:header">Annual valuation. </heading>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><heading style="-uslm-dtd:header">In general. </heading><content style="-uslm-dtd:text">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 of the Treasury.</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><heading style="-uslm-dtd:header">Valuation date. </heading>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="i">“(i) </num><heading style="-uslm-dtd:header">Current year. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="ii">“(ii) </num><heading style="-uslm-dtd:header">Use of prior year valuation. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="iii">“(iii) </num><heading style="-uslm-dtd:header">Adjustments. </heading><content style="-uslm-dtd:text">Information under clause (ii) shall, in accordance with regulations, be actuarially adjusted to reflect significant differences in participants.</content>
</clause>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="iv">“(iv) </num><heading style="-uslm-dtd:header">Limitation. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="9">“(9) </num><heading style="-uslm-dtd:header">Time when certain contributions deemed made. </heading><chapeau style="-uslm-dtd:text">For purposes of this section, any contributions for a plan year made by an employer during the period—</chapeau>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><content style="-uslm-dtd:text">beginning on the day after the last day of such plan year, and</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><content style="-uslm-dtd:text">ending on the day which is 8½ months after the close of the plan year,</content>
</subparagraph><continuation style="-uslm-dtd:continuation-text" role="paragraph">shall be deemed to have been made on such last day.</continuation>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="10">“(10) </num><heading style="-uslm-dtd:header">Anticipation of benefit increases effective in the future. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:subsection" styleType="OLC">
<num style="-uslm-dtd:enum" value="d">“(d) </num><heading style="-uslm-dtd:header">Extension of Amortization Periods. </heading><chapeau style="-uslm-dtd:text">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 style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="1">“(1) </num><content style="-uslm-dtd:text">a substantial risk to the voluntary continuation of the plan, or</content>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="2">“(2) </num><content style="-uslm-dtd:text">a substantial curtailment of pension benefit levels or employee compensation.</content>
</paragraph>
</subsection>
<subsection style="-uslm-dtd:subsection" styleType="OLC">
<num style="-uslm-dtd:enum" value="e">“(e) </num><heading style="-uslm-dtd:header">Alternative Minimum Funding Standard. </heading>
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="1">“(1) </num><heading style="-uslm-dtd:header">In general. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="2">“(2) </num><heading style="-uslm-dtd:header">Charges and credits to account. </heading><chapeau style="-uslm-dtd:text">For a plan year the alternative minimum funding standard account shall be—</chapeau>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><chapeau style="-uslm-dtd:text">charged with the sum of—</chapeau>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="i">“(i) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="ii">“(ii) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="iii">“(iii) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><content style="-uslm-dtd:text">credited with the amount considered contributed by the employer to or under the plan for the plan year.</content>
</subparagraph>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="3">“(3) </num><heading style="-uslm-dtd:header">Interest. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:subsection" styleType="OLC">
<num style="-uslm-dtd:enum" value="f">“(f) </num><heading style="-uslm-dtd:header">Quarterly Contributions Required. </heading>
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="1">“(1) </num><heading style="-uslm-dtd:header">In general. </heading><chapeau style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><content style="-uslm-dtd:text">the rate of interest used under the plan in determining costs.</content>
</subparagraph>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="2">“(2) </num><heading style="-uslm-dtd:header">Amount of underpayment, period of underpayment. </heading><chapeau style="-uslm-dtd:text">For purposes of paragraph (1)—</chapeau>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><heading style="-uslm-dtd:header">Amount. </heading><chapeau style="-uslm-dtd:text">The amount of the underpayment shall be the excess of—</chapeau>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="i">“(i) </num><content style="-uslm-dtd:text">the required installment, over</content>
</clause>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="ii">“(ii) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><heading style="-uslm-dtd:header">Period of underpayment. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="C">“(C) </num><heading style="-uslm-dtd:header">Order of crediting contributions. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="3">“(3) </num><heading style="-uslm-dtd:header">Number of required installments; due dates. </heading><chapeau style="-uslm-dtd:text">For purposes of this subsection—</chapeau>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><heading style="-uslm-dtd:header">Payable in 4 installments. </heading><content style="-uslm-dtd:text">There shall be 4 required installments for each plan year.</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><heading style="-uslm-dtd:header">Time for payment of installments. </heading><foreign id="warning-d951182e645" note="processing mode: unknown" role="passthroughContent"><compsdtd:table xmlns:compsdtd="http://schemas.gpo.gov/xml/comps-dtd" line-rules="no-gen" blank-lines-before="0" blank-lines-after="0"><compsdtd:ttitle>
</compsdtd:ttitle><compsdtd:tgroup cols="2" ttitle-size="0" thead-tbody-ldg-size="10.10.12"><compsdtd:colspec colname="col1" coldef="txt" min-data-value="150" /><compsdtd:colspec colname="col2" align="right" coldef="txt-no-ldr" min-data-value="150" /><compsdtd:thead><compsdtd:row><compsdtd:entry align="left" colname="col1">
<compsdtd:bold>``In the case of the following required installments:</compsdtd:bold>
</compsdtd:entry><compsdtd:entry align="right" colname="col2">
<compsdtd:bold>The due date is:</compsdtd:bold>
</compsdtd:entry></compsdtd:row></compsdtd:thead><compsdtd:tbody><compsdtd:row><compsdtd:entry stub-definition="txt-ldr" stub-hierarchy="1" colname="col1">1st</compsdtd:entry><compsdtd:entry colname="col2">April 15 </compsdtd:entry></compsdtd:row><compsdtd:row><compsdtd:entry stub-definition="txt-ldr" stub-hierarchy="1" colname="col1">2nd</compsdtd:entry><compsdtd:entry colname="col2">July 15 </compsdtd:entry></compsdtd:row><compsdtd:row><compsdtd:entry stub-definition="txt-ldr" stub-hierarchy="1" colname="col1">3rd</compsdtd:entry><compsdtd:entry colname="col2">October 15 </compsdtd:entry></compsdtd:row><compsdtd:row><compsdtd:entry stub-definition="txt-ldr" stub-hierarchy="1" colname="col1">4th</compsdtd:entry><compsdtd:entry colname="col2">January 15 of the following year.</compsdtd:entry></compsdtd:row></compsdtd:tbody></compsdtd:tgroup></compsdtd:table></foreign>
</subparagraph>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="4">“(4) </num><heading style="-uslm-dtd:header">Amount of required installment. </heading><chapeau style="-uslm-dtd:text">For purposes of this subsection—</chapeau>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><heading style="-uslm-dtd:header">In general. </heading><content style="-uslm-dtd:text">The amount of any required installment shall be 25 percent of the required annual payment.</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><heading style="-uslm-dtd:header">Required annual payment. </heading><chapeau style="-uslm-dtd:text">For purposes of subparagraph (A), the term ‘<quotedText style="-uslm-dtd:quote">required annual payment</quotedText>’ means the lesser of—</chapeau>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="i">“(i) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="ii">“(ii) </num><content style="-uslm-dtd:text">100 percent of the amount so required for the preceding plan year.</content>
</clause><continuation style="-uslm-dtd:continuation-text" role="subparagraph">Clause (ii) shall not apply if the preceding plan year was not a year of 12 months.</continuation>
</subparagraph>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="5">“(5) </num><heading style="-uslm-dtd:header">Liquidity requirement. </heading>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><heading style="-uslm-dtd:header">In general. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><heading style="-uslm-dtd:header">Plans to which paragraph applies. </heading><chapeau style="-uslm-dtd:text">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 style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="i">“(i) </num><content style="-uslm-dtd:text">is required to pay installments under this subsection for a plan year, and</content>
</clause>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="ii">“(ii) </num><content style="-uslm-dtd:text">has a liquidity shortfall for any quarter during such plan year.</content>
</clause>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="C">“(C) </num><heading style="-uslm-dtd:header">Period of underpayment. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="D">“(D) </num><heading style="-uslm-dtd:header">Limitation on increase. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="E">“(E) </num><heading style="-uslm-dtd:header">Definitions. </heading><chapeau style="-uslm-dtd:text">For purposes of this paragraph—</chapeau>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="i">“(i) </num><heading style="-uslm-dtd:header">Liquidity shortfall. </heading><content style="-uslm-dtd:text">The term ‘<quotedText style="-uslm-dtd:quote">liquidity shortfall</quotedText>’ 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 style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="ii">“(ii) </num><heading style="-uslm-dtd:header">Base amount. </heading>
<subclause style="-uslm-dtd:subclause" styleType="OLC">
<num style="-uslm-dtd:enum" value="I">“(I) </num><heading style="-uslm-dtd:header">In general. </heading><content style="-uslm-dtd:text">The term ‘<quotedText style="-uslm-dtd:quote">base amount</quotedText>’ 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 style="-uslm-dtd:subclause" styleType="OLC">
<num style="-uslm-dtd:enum" value="II">“(II) </num><heading style="-uslm-dtd:header">Special rule. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="iii">“(iii) </num><heading style="-uslm-dtd:header">Disbursements from the plan. </heading><content style="-uslm-dtd:text">The term ‘<quotedText style="-uslm-dtd:quote">disbursements from the plan</quotedText>’ means all disbursements from the trust, including purchases of annuities, payments of single sums and other benefits, and administrative expenses.</content>
</clause>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="iv">“(iv) </num><heading style="-uslm-dtd:header">Adjusted disbursements. </heading><chapeau style="-uslm-dtd:text">The term ‘<quotedText style="-uslm-dtd:quote">adjusted disbursements</quotedText>’ means disbursements from the plan reduced by the product of—</chapeau>
<subclause style="-uslm-dtd:subclause" styleType="OLC">
<num style="-uslm-dtd:enum" value="I">“(I) </num><content style="-uslm-dtd:text">the plan’s funded current liability percentage for the plan year, and</content>
</subclause>
<subclause style="-uslm-dtd:subclause" styleType="OLC">
<num style="-uslm-dtd:enum" value="II">“(II) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="v">“(v) </num><heading style="-uslm-dtd:header">Liquid assets. </heading><content style="-uslm-dtd:text">The term ‘<quotedText style="-uslm-dtd:quote">liquid assets</quotedText>’ means cash, marketable securities and such other assets as specified by the Secretary of the Treasury in regulations.</content>
</clause>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="vi">“(vi) </num><heading style="-uslm-dtd:header">Quarter. </heading><content style="-uslm-dtd:text">The term ‘<quotedText style="-uslm-dtd:quote">quarter</quotedText>’ 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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="F">“(F) </num><heading style="-uslm-dtd:header">Regulations. </heading><content style="-uslm-dtd:text">The Secretary of the Treasury may prescribe such regulations as are necessary to carry out this paragraph.</content>
</subparagraph>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="6">“(6) </num><heading style="-uslm-dtd:header">Fiscal years and short years. </heading>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><heading style="-uslm-dtd:header">Fiscal years. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><heading style="-uslm-dtd:header">Short plan year. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:subsection" styleType="OLC">
<num style="-uslm-dtd:enum" value="g">“(g) </num><heading style="-uslm-dtd:header">Imposition of Lien Where Failure To Make Required Contributions. </heading>
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="1">“(1) </num><heading style="-uslm-dtd:header">In general. </heading><chapeau style="-uslm-dtd:text">In the case of a plan to which this section applies, if—</chapeau>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:continuation-text" role="paragraph">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 style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="2">“(2) </num><heading style="-uslm-dtd:header">Plans to which subsection applies. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="3">“(3) </num><heading style="-uslm-dtd:header">Amount of lien. </heading><chapeau style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><content style="-uslm-dtd:text">for plan years beginning after 1987, and</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><content style="-uslm-dtd:text">for which payment has not been made before the due date.</content>
</subparagraph>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="4">“(4) </num><heading style="-uslm-dtd:header">Notice of failure; lien. </heading>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><heading style="-uslm-dtd:header">Notice of failure. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><heading style="-uslm-dtd:header">Period of lien. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="C">“(C) </num><heading style="-uslm-dtd:header">Certain rules to apply. </heading><content style="-uslm-dtd:text">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.</content>
</subparagraph>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="5">“(5) </num><heading style="-uslm-dtd:header">Enforcement. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="6">“(6) </num><heading style="-uslm-dtd:header">Definitions. </heading><chapeau style="-uslm-dtd:text">For purposes of this subsection—</chapeau>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><heading style="-uslm-dtd:header">Due date; required installment. </heading><content style="-uslm-dtd:text">The terms ‘<quotedText style="-uslm-dtd:quote">due date</quotedText>’ and ‘<quotedText style="-uslm-dtd:quote">required installment</quotedText>’ 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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><heading style="-uslm-dtd:header">Controlled group. </heading><content style="-uslm-dtd:text">The term ‘<quotedText style="-uslm-dtd:quote">controlled group</quotedText>’ 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 style="-uslm-dtd:subsection" styleType="OLC">
<num style="-uslm-dtd:enum" value="h">“(h) </num><heading style="-uslm-dtd:header">Current Liability. </heading><chapeau style="-uslm-dtd:text">For purposes of this section—</chapeau>
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="1">“(1) </num><heading style="-uslm-dtd:header">In general. </heading><content style="-uslm-dtd:text">The term ‘<quotedText style="-uslm-dtd:quote">current liability</quotedText>’ means all liabilities to employees and their beneficiaries under the plan.</content>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="2">“(2) </num><heading style="-uslm-dtd:header">Treatment of unpredictable contingent event benefits. </heading>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><heading style="-uslm-dtd:header">In general. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><heading style="-uslm-dtd:header">Unpredictable contingent event benefit. </heading><chapeau style="-uslm-dtd:text">The term ‘<quotedText style="-uslm-dtd:quote">unpredictable contingent event benefit</quotedText>’ means any benefit contingent on an event other than—</chapeau>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="i">“(i) </num><content style="-uslm-dtd:text">age, service, compensation, death, or disability, or</content>
</clause>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="ii">“(ii) </num><content style="-uslm-dtd:text">an event which is reasonably and reliably predictable (as determined by the Secretary of the Treasury).</content>
</clause>
</subparagraph>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="3">“(3) </num><heading style="-uslm-dtd:header">Interest rate and mortality assumptions used. </heading>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><heading style="-uslm-dtd:header">Interest rate. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><heading style="-uslm-dtd:header">Mortality tables. </heading>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="i">“(i) </num><heading style="-uslm-dtd:header">Secretarial authority. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="ii">“(ii) </num><heading style="-uslm-dtd:header">Periodic review. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="C">“(C) </num><heading style="-uslm-dtd:header">Separate mortality tables for the disabled. </heading><chapeau style="-uslm-dtd:text">Notwithstanding subparagraph (B)—</chapeau>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="i">“(i) </num><heading style="-uslm-dtd:header">In general. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="ii">“(ii) </num><heading style="-uslm-dtd:header">Special rule for disabilities occurring after 1994. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="4">“(4) </num><heading style="-uslm-dtd:header">Certain service disregarded. </heading>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><heading style="-uslm-dtd:header">In general. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><heading style="-uslm-dtd:header">Applicable percentage. </heading><content style="-uslm-dtd:text">For purposes of this subparagraph, the applicable percentage shall be determined as follows:<foreign id="warning-d951182e1033" note="processing mode: unknown" role="passthroughContent"><compsdtd:table xmlns:compsdtd="http://schemas.gpo.gov/xml/comps-dtd" line-rules="no-gen" blank-lines-before="0" blank-lines-after="0"><compsdtd:ttitle>
</compsdtd:ttitle><compsdtd:tgroup cols="2" ttitle-size="0" thead-tbody-ldg-size="10.10.12"><compsdtd:colspec colname="col1" coldef="txt" min-data-value="150" /><compsdtd:colspec colname="col2" coldef="fig" min-data-value="27" /><compsdtd:thead><compsdtd:row><compsdtd:entry align="left" colname="col1">
<compsdtd:bold>``If the years of participation </compsdtd:bold>
<compsdtd:linebreak />
<compsdtd:bold>are:</compsdtd:bold>
</compsdtd:entry><compsdtd:entry align="right" colname="col2">
<compsdtd:bold>The applicable percentage is:</compsdtd:bold>
</compsdtd:entry></compsdtd:row></compsdtd:thead><compsdtd:tbody><compsdtd:row><compsdtd:entry stub-definition="txt-ldr" stub-hierarchy="1" colname="col1">1</compsdtd:entry><compsdtd:entry leader-modify="clr-ldr" colname="col2">20</compsdtd:entry></compsdtd:row><compsdtd:row><compsdtd:entry stub-definition="txt-ldr" stub-hierarchy="1" colname="col1">2</compsdtd:entry><compsdtd:entry leader-modify="clr-ldr" colname="col2">40</compsdtd:entry></compsdtd:row><compsdtd:row><compsdtd:entry stub-definition="txt-ldr" stub-hierarchy="1" colname="col1">3</compsdtd:entry><compsdtd:entry leader-modify="clr-ldr" colname="col2">60</compsdtd:entry></compsdtd:row><compsdtd:row><compsdtd:entry stub-definition="txt-ldr" stub-hierarchy="1" colname="col1">4</compsdtd:entry><compsdtd:entry leader-modify="clr-ldr" colname="col2">80</compsdtd:entry></compsdtd:row><compsdtd:row><compsdtd:entry stub-definition="txt-ldr" stub-hierarchy="1" colname="col1">5 or more</compsdtd:entry><compsdtd:entry leader-modify="clr-ldr" colname="col2">100.</compsdtd:entry></compsdtd:row></compsdtd:tbody></compsdtd:tgroup></compsdtd:table></foreign></content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="C">“(C) </num><heading style="-uslm-dtd:header">Participants to whom paragraph applies. </heading><chapeau style="-uslm-dtd:text">This subparagraph shall apply to any participant who, at the time of becoming a participant—</chapeau>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="i">“(i) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="ii">“(ii) </num><content style="-uslm-dtd:text">who first becomes a participant under the plan in a plan year beginning after December 31, 1987, and</content>
</clause>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="iii">“(iii) </num><content style="-uslm-dtd:text">has years of service greater than the minimum years of service necessary for eligibility to participate in the plan.</content>
</clause>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="D">“(D) </num><heading style="-uslm-dtd:header">Election. </heading><content style="-uslm-dtd:text">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.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection style="-uslm-dtd:subsection" styleType="OLC">
<num style="-uslm-dtd:enum" value="i">“(i) </num><heading style="-uslm-dtd:header">Funded Current Liability Percentage. </heading><chapeau style="-uslm-dtd:text">For purposes of this section, the term ‘<quotedText style="-uslm-dtd:quote">funded current liability percentage</quotedText>’ means, with respect to any plan year, the percentage which—</chapeau>
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="1">“(1) </num><content style="-uslm-dtd:text">the value of the plan’s assets determined under subsection (c)(2), is of</content>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="2">“(2) </num><content style="-uslm-dtd:text">the current liability under the plan.</content>
</paragraph>
</subsection>
<subsection style="-uslm-dtd:subsection" styleType="OLC">
<num style="-uslm-dtd:enum" value="j">“(j) </num><heading style="-uslm-dtd:header">Funding Restoration Status. </heading><chapeau style="-uslm-dtd:text">Notwithstanding any other provisions of this section—</chapeau>
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="1">“(1) </num><heading style="-uslm-dtd:header">Normal cost payment. </heading>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><heading style="-uslm-dtd:header">In general. </heading><chapeau style="-uslm-dtd:text">In the case of a CSEC plan that is in funding restoration status for a plan year, for purposes of section 302, the term ‘<quotedText style="-uslm-dtd:quote">accumulated funding deficiency</quotedText>’ means, for such plan year, the greater of—</chapeau>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="i">“(i) </num><content style="-uslm-dtd:text">the amount described in subsection (a), or</content>
</clause>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="ii">“(ii) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><heading style="-uslm-dtd:header">Normal cost. </heading><content style="-uslm-dtd:text">In the case of a CSEC plan that uses a spread gain funding method, for purposes of this subsection, the term ‘<quotedText style="-uslm-dtd:quote">normal cost</quotedText>’ means normal cost as determined under the entry age normal funding method.</content>
</subparagraph>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="2">“(2) </num><heading style="-uslm-dtd:header">Plan amendments. </heading><content style="-uslm-dtd:text">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 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 style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="3">“(3) </num><heading style="-uslm-dtd:header">Funding restoration plan. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="4">“(4) </num><heading style="-uslm-dtd:header">Annual certification by plan actuary. </heading><chapeau style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><content style="-uslm-dtd:text">the amount of any contributions reasonably anticipated to be made for the preceding plan year.</content>
</subparagraph><continuation style="-uslm-dtd:continuation-text" role="paragraph">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 style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="5">“(5) </num><heading style="-uslm-dtd:header">Definitions. </heading><chapeau style="-uslm-dtd:text">For purposes of this subsection—</chapeau>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><heading style="-uslm-dtd:header">Funding restoration status. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><heading style="-uslm-dtd:header">Funded percentage. </heading><chapeau style="-uslm-dtd:text">The term ‘<quotedText style="-uslm-dtd:quote">funded percentage</quotedText>’ means the ratio (expressed as a percentage) which—</chapeau>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="i">“(i) </num><content style="-uslm-dtd:text">the value of plan assets (as determined under subsection (c)(2)), bears to</content>
</clause>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="ii">“(ii) </num><content style="-uslm-dtd:text">the plan’s funding liability.</content>
</clause>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="C">“(C) </num><heading style="-uslm-dtd:header">Funding liability. </heading><content style="-uslm-dtd:text">The term ‘<quotedText style="-uslm-dtd:quote">funding liability</quotedText>’ 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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="D">“(D) </num><heading style="-uslm-dtd:header">Spread gain funding method. </heading><content style="-uslm-dtd:text">The term ‘<quotedText style="-uslm-dtd:quote">spread gain funding method</quotedText>’ 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 style="-uslm-dtd:subsection" identifier="/us/sComp/113/97/tI/s102/b" styleType="OLC">
<num style="-uslm-dtd:enum" value="b">(b) </num><heading style="-uslm-dtd:header">Separate Rules for CSEC Plans.—</heading>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/113/97/tI/s102/b/1" styleType="OLC">
<num style="-uslm-dtd:enum" value="1">(1) </num><heading style="-uslm-dtd:header">In general.—</heading><content style="-uslm-dtd:text">Paragraph (2) of section 302(a) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1082(a)) is amended by striking “<quotedText style="-uslm-dtd:quote">and</quotedText>” at the end of subparagraph (B), by striking the period at the end of subparagraph (C) and inserting “<quotedText style="-uslm-dtd:quote">, and</quotedText>”, and by inserting at the end thereof the following new subparagraph:<quotedContent style="-uslm-dtd:quoted-block">
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="D">“(D) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:paragraph" identifier="/us/sComp/113/97/tI/s102/b/2" styleType="OLC">
<num style="-uslm-dtd:enum" value="2">(2) </num><heading style="-uslm-dtd:header">Conforming amendments.—</heading><chapeau style="-uslm-dtd:text">Section 302 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1082) is amended—</chapeau>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/113/97/tI/s102/b/2/A" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">(A) </num><content style="-uslm-dtd:text">by striking “<quotedText style="-uslm-dtd:quote">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 inserting “<quotedText style="-uslm-dtd:quote">multiemployer plan or a CSEC plan</quotedText>”,</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/113/97/tI/s102/b/2/B" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">(B) </num><content style="-uslm-dtd:text">by striking “<quotedText style="-uslm-dtd:quote">303(j)</quotedText>” in paragraph (1) of subsection (b) and inserting “<quotedText style="-uslm-dtd:quote">303(j) or under section 306(f)</quotedText>”,</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/113/97/tI/s102/b/2/C" styleType="OLC">
<num style="-uslm-dtd:enum" value="C">(C)</num><clause style="-uslm-dtd:clause" identifier="/us/sComp/113/97/tI/s102/b/2/C/i" styleType="OLC" class="inline"><num style="-uslm-dtd:enum" value="i">(i) </num><content style="-uslm-dtd:text">by striking “<quotedText style="-uslm-dtd:quote">and</quotedText>” at the end of clause (i) of subsection (c)(1)(B),</content></clause>
<clause style="-uslm-dtd:clause" identifier="/us/sComp/113/97/tI/s102/b/2/C/ii" styleType="OLC" class="leftIndentDecrease1">
<num style="-uslm-dtd:enum" value="ii">(ii) </num><content style="-uslm-dtd:text">by striking the period at the end of clause (ii) of subsection (c)(1)(B), and inserting “<quotedText style="-uslm-dtd:quote">, and</quotedText>”, and</content>
</clause>
<clause style="-uslm-dtd:clause" identifier="/us/sComp/113/97/tI/s102/b/2/C/iii" styleType="OLC" class="leftIndentDecrease1">
<num style="-uslm-dtd:enum" value="iii">(iii) </num><content style="-uslm-dtd:text">by inserting the following new clause after clause (ii) of subsection (c)(1)(B):<quotedContent style="-uslm-dtd:quoted-block">
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="iii">“(iii) </num><content style="-uslm-dtd:text">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>
</clause></quotedContent>,</content>
</clause>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/113/97/tI/s102/b/2/D" styleType="OLC">
<num style="-uslm-dtd:enum" value="D">(D) </num><content style="-uslm-dtd:text">by striking “<quotedText style="-uslm-dtd:quote">under paragraph (1)</quotedText>” in clause (i) of subsection (c)(4)(A) and inserting “<quotedText style="-uslm-dtd:quote">under paragraph (1) or for granting an extension under section 306(d)</quotedText>”,</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/113/97/tI/s102/b/2/E" styleType="OLC">
<num style="-uslm-dtd:enum" value="E">(E) </num><content style="-uslm-dtd:text">by striking “<quotedText style="-uslm-dtd:quote">waiver under this subsection</quotedText>” in subparagraph (B) of subsection (c)(4) and inserting “<quotedText style="-uslm-dtd:quote">waiver under this subsection or an extension under 306(d)</quotedText>”,</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/113/97/tI/s102/b/2/F" styleType="OLC">
<num style="-uslm-dtd:enum" value="F">(F) </num><content style="-uslm-dtd:text">by striking “<quotedText style="-uslm-dtd:quote">waiver or modification</quotedText>” in subclause (I) of subsection (c)(4)(B)(i) and inserting “<quotedText style="-uslm-dtd:quote">waiver, modification, or extension</quotedText>”,</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/113/97/tI/s102/b/2/G" styleType="OLC">
<num style="-uslm-dtd:enum" value="G">(G) </num><content style="-uslm-dtd:text">by striking “<quotedText style="-uslm-dtd:quote">waivers</quotedText>” in the heading of subsection (c)(4)(C) and of clause (ii) of subsection (c)(4)(C) and inserting “<quotedText style="-uslm-dtd:quote">waivers or extensions</quotedText>”,</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/113/97/tI/s102/b/2/H" styleType="OLC">
<num style="-uslm-dtd:enum" value="H">(H) </num><content style="-uslm-dtd:text">by striking “<quotedText style="-uslm-dtd:quote">section 304(d)</quotedText>” in subparagraph (A) of subsection (c)(7) and in paragraph (2) of subsection (d) and inserting “<quotedText style="-uslm-dtd:quote">section 304(d) or section 306(d)</quotedText>”,</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/113/97/tI/s102/b/2/I" styleType="OLC">
<num style="-uslm-dtd:enum" value="I">(I) </num><content style="-uslm-dtd:text">by striking “<quotedText style="-uslm-dtd:quote">and</quotedText>” at the end of subclause (I) of subsection (c)(4)(C)(i) and adding “<quotedText style="-uslm-dtd:quote">or the accumulated funding deficiency under section 306, whichever is applicable,</quotedText>”,</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/113/97/tI/s102/b/2/J" styleType="OLC">
<num style="-uslm-dtd:enum" value="J">(J) </num><content style="-uslm-dtd:text">by striking “<quotedText style="-uslm-dtd:quote">303(e)(2),</quotedText>” in subclause (II) of subsection (c)(4)(C)(i) and inserting “<quotedText style="-uslm-dtd:quote">303(e)(2) or 306(b)(2)(C), whichever is applicable, and</quotedText>”,</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/113/97/tI/s102/b/2/K" styleType="OLC">
<num style="-uslm-dtd:enum" value="K">(K) </num><content style="-uslm-dtd:text">by adding immediately after subclause (II) of subsection (c)(4)(C)(i) the following new subclause:<quotedContent style="-uslm-dtd:quoted-block">
<subclause style="-uslm-dtd:subclause" styleType="OLC">
<num style="-uslm-dtd:enum" value="III">“(III) </num><content style="-uslm-dtd:text">the total amounts not paid by reason of an extension in effect under section 306(d),”</content>
</subclause></quotedContent>,</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/113/97/tI/s102/b/2/L" styleType="OLC">
<num style="-uslm-dtd:enum" value="L">(L) </num><content style="-uslm-dtd:text">by striking “<quotedText style="-uslm-dtd:quote">for waivers of</quotedText>” in clause (ii) of subsection (c)(4)(C) and inserting “<quotedText style="-uslm-dtd:quote">for waivers or extensions with respect to</quotedText>”, and</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/113/97/tI/s102/b/2/M" styleType="OLC">
<num style="-uslm-dtd:enum" value="M">(M) </num><content style="-uslm-dtd:text">by striking “<quotedText style="-uslm-dtd:quote">single-employer plan</quotedText>” in subparagraph (A) of subsection (a)(2) and in clause (i) of subsection (c)(1)(B) and inserting “<quotedText style="-uslm-dtd:quote">single-employer plan (other than a CSEC plan)</quotedText>”.</content>
</subparagraph>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/113/97/tI/s102/b/3" styleType="OLC">
<num style="-uslm-dtd:enum" value="3">(3) </num><heading style="-uslm-dtd:header">Benefit restrictions.—</heading><content style="-uslm-dtd:text">Subsection (g) of section 206 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1056) is amended by adding at the end thereof the following new paragraph:<quotedContent style="-uslm-dtd:quoted-block">
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="12">“(12) </num><heading style="-uslm-dtd:header">CSEC plans. </heading><content style="-uslm-dtd:text">This subsection shall not apply to a CSEC plan (as defined in section 210(f)).”</content>
</paragraph></quotedContent>.</content>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/113/97/tI/s102/b/4" styleType="OLC">
<num style="-uslm-dtd:enum" value="4">(4) </num><heading style="-uslm-dtd:header">Benefit increases.—</heading><content style="-uslm-dtd:text">Paragraph (3) of section 204(i) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1054(i)) is amended by striking “<quotedText style="-uslm-dtd:quote">multiemployer plans</quotedText>” and inserting “<quotedText style="-uslm-dtd:quote">multiemployer plans or CSEC plans</quotedText>”.</content>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/113/97/tI/s102/b/5" styleType="OLC">
<num style="-uslm-dtd:enum" value="5">(5) </num><heading style="-uslm-dtd:header">Section 103.—</heading><content style="-uslm-dtd:text">Subparagraph (B) of section 103(d)(8) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1023(d)(8)) is amended by striking “<quotedText style="-uslm-dtd:quote">303(h) and 304(c)(3)</quotedText>” and inserting “<quotedText style="-uslm-dtd:quote">303(h), 304(c)(3), and 306(c)(3)</quotedText>”.</content>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/113/97/tI/s102/b/6" styleType="OLC">
<num style="-uslm-dtd:enum" value="6">(6) </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t29/s1132">29 U.S.C. 1132</ref><b>]</b> </editorialNote><heading style="-uslm-dtd:header">Section 502.—</heading><chapeau style="-uslm-dtd:text">Subsection (c) of section 502 of the Employee Retirement Income Security Act of 1974 is amended—</chapeau>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/113/97/tI/s102/b/6/A" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">(A) </num><content style="-uslm-dtd:text">by redesignating the last paragraph as paragraph (11), and</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/113/97/tI/s102/b/6/B" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">(B) </num><content style="-uslm-dtd:text">by adding at the end the following new paragraph:<quotedContent style="-uslm-dtd:quoted-block">
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="12">“(12) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:paragraph" identifier="/us/sComp/113/97/tI/s102/b/7" styleType="OLC">
<num style="-uslm-dtd:enum" value="7">(7) </num><heading style="-uslm-dtd:header">Section 4003.—</heading><content style="-uslm-dtd:text">Subparagraph (B) of section 4003(e)(1) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1303(e)(1)) is amended by striking “<quotedText style="-uslm-dtd:quote">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 inserting “<quotedText style="-uslm-dtd:quote">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 style="-uslm-dtd:paragraph" identifier="/us/sComp/113/97/tI/s102/b/8" styleType="OLC">
<num style="-uslm-dtd:enum" value="8">(8) </num><heading style="-uslm-dtd:header">Section 4010.—</heading><content style="-uslm-dtd:text">Paragraph (2) of section 4010(b) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1310(b)) is amended by striking “<quotedText style="-uslm-dtd:quote">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 inserting “<quotedText style="-uslm-dtd:quote">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 style="-uslm-dtd:paragraph" identifier="/us/sComp/113/97/tI/s102/b/9" styleType="OLC">
<num style="-uslm-dtd:enum" value="9">(9) </num><heading style="-uslm-dtd:header">Section 4071.—</heading><content style="-uslm-dtd:text">Section 4071 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1371) is amended by striking “<quotedText style="-uslm-dtd:quote">section 303(k)(4)</quotedText>” and inserting “<quotedText style="-uslm-dtd:quote">section 303(k)(4) or 306(g)(4)</quotedText>”.</content>
</paragraph>
</subsection>
</section>
<section style="-uslm-dtd:section" identifier="/us/sComp/113/97/tI/s103" styleType="OLC">
<num style="-uslm-dtd:enum" value="103">SEC. 103. </num><heading style="-uslm-dtd:header">ELECTIONS. </heading>
<subsection style="-uslm-dtd:subsection" identifier="/us/sComp/113/97/tI/s103/a" styleType="OLC">
<num style="-uslm-dtd:enum" value="a">(a) </num><heading style="-uslm-dtd:header">Election Not To Be Treated as a CSEC Plan.—</heading><content style="-uslm-dtd:text">Subsection (f) of section 210 of the Employee Retirement Income Security Act of 1974, as added by section 101, is amended by adding at the end the following new paragraph:<quotedContent style="-uslm-dtd:quoted-block">
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="3">“(3) </num><heading style="-uslm-dtd:header">Election. </heading>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><heading style="-uslm-dtd:header">In general. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><heading style="-uslm-dtd:header">Special rule. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:subsection" identifier="/us/sComp/113/97/tI/s103/b" styleType="OLC">
<num style="-uslm-dtd:enum" value="b">(b) </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t26/s401">26 U.S.C. 401 note</ref><b>]</b> </editorialNote><heading style="-uslm-dtd:header">Election To Cease To Be Treated as an Eligible Charity Plan.—</heading><chapeau style="-uslm-dtd:text">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 2010, is amended—</chapeau>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/113/97/tI/s103/b/1" styleType="OLC">
<num style="-uslm-dtd:enum" value="1">(1) </num><content style="-uslm-dtd:text">by striking “<quotedText style="-uslm-dtd:quote">For purposes of</quotedText>” and inserting “<quotedText style="-uslm-dtd:quote">(1) In general.—For purposes of</quotedText>”, and</content>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/113/97/tI/s103/b/2" styleType="OLC">
<num style="-uslm-dtd:enum" value="2">(2) </num><content style="-uslm-dtd:text">by adding at the end the following:<quotedContent style="-uslm-dtd:quoted-block">
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="2">“(2) </num><heading style="-uslm-dtd:header">Election not to be an eligible charity plan. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="3">“(3) </num><heading style="-uslm-dtd:header">Election to use funding options available to other plan sponsors. </heading>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><chapeau style="-uslm-dtd:text">Under the rules described in this subparagraph, for the first plan year beginning after December 31, 2013, a plan has—</chapeau>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="i">“(i) </num><content style="-uslm-dtd:text">an 11-year shortfall amortization base,</content>
</clause>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="ii">“(ii) </num><content style="-uslm-dtd:text">a 12-year shortfall amortization base, and</content>
</clause>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="iii">“(iii) </num><content style="-uslm-dtd:text">a 7-year shortfall amortization base.</content>
</clause>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="C">“(C) </num><chapeau style="-uslm-dtd:text">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 style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="i">“(i) </num><content style="-uslm-dtd:text">in the case of an 11-year shortfall amortization base, substituting ‘<quotedText style="-uslm-dtd:quote">11-plan-year period</quotedText>’ for ‘<quotedText style="-uslm-dtd:quote">7-plan-year period</quotedText>’ wherever such phrase appears, and</content>
</clause>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="ii">“(ii) </num><content style="-uslm-dtd:text">in the case of a 12-year shortfall amortization base, substituting ‘<quotedText style="-uslm-dtd:quote">12-plan-year period</quotedText>’ for ‘<quotedText style="-uslm-dtd:quote">7-plan-year period</quotedText>’ wherever such phrase appears.</content>
</clause>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="D">“(D) </num><chapeau style="-uslm-dtd:text">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 style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="i">“(i) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="ii">“(ii) </num><content style="-uslm-dtd:text">All references in section 303(c)(7) of such Act and section 430(c)(7) of such Code to ‘<quotedText style="-uslm-dtd:quote">February 28, 2010</quotedText>’ or ‘<quotedText style="-uslm-dtd:quote">March 1, 2010</quotedText>’ shall be treated as references to ‘<quotedText style="-uslm-dtd:quote">February 28, 2013</quotedText>’ or ‘<quotedText style="-uslm-dtd:quote">March 1, 2013</quotedText>’, respectively.</content>
</clause>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="E">“(E) </num><chapeau style="-uslm-dtd:text">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 have applied to the plan for the first plan beginning after December 31, 2009, if—</chapeau>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="i">“(i) </num><content style="-uslm-dtd:text">the plan had never been an eligible charity plan,</content>
</clause>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="ii">“(ii) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="iii">“(iii) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="F">“(F) </num><chapeau style="-uslm-dtd:text">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 style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="i">“(i) </num><content style="-uslm-dtd:text">the plan had never been an eligible charity plan,</content>
</clause>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="ii">“(ii) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="iii">“(iii) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="G">“(G) </num><chapeau style="-uslm-dtd:text">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 style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="i">“(i) </num><content style="-uslm-dtd:text">the shortfall amortization base for the first plan year beginning after December 31, 2013, without regard to this paragraph, minus</content>
</clause>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="ii">“(ii) </num><content style="-uslm-dtd:text">the sum of the 11-year shortfall amortization base and the 12-year shortfall amortization base.</content>
</clause>
</subparagraph>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="4">“(4) </num><heading style="-uslm-dtd:header">Retroactive election. </heading><content style="-uslm-dtd:text">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 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 style="-uslm-dtd:subsection" identifier="/us/sComp/113/97/tI/s103/c" styleType="OLC">
<num style="-uslm-dtd:enum" value="c">(c) </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t26/s410">26 U.S.C. 410 note</ref><b>]</b> </editorialNote><heading style="-uslm-dtd:header">Deemed Election.—</heading><chapeau style="-uslm-dtd:text">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 style="-uslm-dtd:paragraph" identifier="/us/sComp/113/97/tI/s103/c/1" styleType="OLC">
<num style="-uslm-dtd:enum" value="1">(1) </num><content style="-uslm-dtd:text">the plan was established before January 1, 2014;</content>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/113/97/tI/s103/c/2" styleType="OLC">
<num style="-uslm-dtd:enum" value="2">(2) </num><content style="-uslm-dtd:text">the plan falls within the definition of a CSEC plan;</content>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/113/97/tI/s103/c/3" styleType="OLC">
<num style="-uslm-dtd:enum" value="3">(3) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:paragraph" identifier="/us/sComp/113/97/tI/s103/c/4" styleType="OLC">
<num style="-uslm-dtd:enum" value="4">(4) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:subsection" identifier="/us/sComp/113/97/tI/s103/d" styleType="OLC">
<num style="-uslm-dtd:enum" value="d">(d) </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t26/s1060">26 U.S.C. 1060 note</ref><b>]</b> </editorialNote><heading style="-uslm-dtd:header">Effective Date.—</heading><content style="-uslm-dtd:text">The amendments made by this section shall apply as of the date of enactment of this Act.</content>
</subsection>
</section>
<section style="-uslm-dtd:section" identifier="/us/sComp/113/97/tI/s104" styleType="OLC">
<num style="-uslm-dtd:enum" value="104">SEC. 104. </num><heading style="-uslm-dtd:header">TRANSPARENCY. </heading>
<subsection style="-uslm-dtd:subsection" identifier="/us/sComp/113/97/tI/s104/a" styleType="OLC">
<num style="-uslm-dtd:enum" value="a">(a) </num><heading style="-uslm-dtd:header">Notice to Participants.—</heading>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/113/97/tI/s104/a/1" styleType="OLC">
<num style="-uslm-dtd:enum" value="1">(1) </num><heading style="-uslm-dtd:header">In general.—</heading><content style="-uslm-dtd:text">Paragraph (2) of section 101(f) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1021(f)) is amended by adding at the end the following new subparagraph:<quotedContent style="-uslm-dtd:quoted-block">
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="E">“(E) </num><heading style="-uslm-dtd:header">Effect of csec plan rules on plan funding. </heading><chapeau style="-uslm-dtd:text">In the case of a CSEC plan, each notice under paragraph (1) shall include—</chapeau>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="i">“(i) </num><content style="-uslm-dtd:text">a statement that different rules apply to CSEC plans than apply to single-employer plans,</content>
</clause>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="ii">“(ii) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="iii">“(iii) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:continuation-text" role="subparagraph">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 style="-uslm-dtd:paragraph" identifier="/us/sComp/113/97/tI/s104/a/2" styleType="OLC">
<num style="-uslm-dtd:enum" value="2">(2) </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t29/s1021">29 U.S.C. 1021 note</ref><b>]</b> </editorialNote><heading style="-uslm-dtd:header">Model notice.—</heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:subsection" identifier="/us/sComp/113/97/tI/s104/b" styleType="OLC">
<num style="-uslm-dtd:enum" value="b">(b) </num><heading style="-uslm-dtd:header">Notice of Failure To Meet Minimum Funding Standards.—</heading>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/113/97/tI/s104/b/1" styleType="OLC">
<num style="-uslm-dtd:enum" value="1">(1) </num><heading style="-uslm-dtd:header">Pending waivers.—</heading><content style="-uslm-dtd:text">Paragraph (2) of section 101(d) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1021(d)) is amended by striking “<quotedText style="-uslm-dtd:quote">303</quotedText>” and inserting “<quotedText style="-uslm-dtd:quote">303 or 306</quotedText>”.</content>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/113/97/tI/s104/b/2" styleType="OLC">
<num style="-uslm-dtd:enum" value="2">(2) </num><heading style="-uslm-dtd:header">Definitions.—</heading><content style="-uslm-dtd:text">Paragraph (3) of section 101(d) of the Employee Retirement Income Security Act of 1974 (21 U.S.C. 1021(d)) is amended by striking “<quotedText style="-uslm-dtd:quote">303(j)</quotedText>” and inserting “<quotedText style="-uslm-dtd:quote">303(j) or 306(f), whichever is applicable</quotedText>”.</content>
</paragraph>
</subsection>
<subsection style="-uslm-dtd:subsection" identifier="/us/sComp/113/97/tI/s104/c" styleType="OLC">
<num style="-uslm-dtd:enum" value="c">(c) </num><heading style="-uslm-dtd:header">Additional Reporting Requirements.—</heading><content style="-uslm-dtd:text">Section 103 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1023) is amended by adding at the end the following new subsection:<quotedContent style="-uslm-dtd:quoted-block">
<subsection style="-uslm-dtd:subsection" styleType="OLC">
<num style="-uslm-dtd:enum" value="g">“(g) </num><heading style="-uslm-dtd:header">Additional Information With Respect to Multiple Employer Plans. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:section" identifier="/us/sComp/113/97/tI/s105" styleType="OLC">
<num style="-uslm-dtd:enum" value="105">SEC. 105. </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t29/s1304a">29 U.S.C. 1304a</ref><b>]</b> </editorialNote><heading style="-uslm-dtd:header">SPONSOR EDUCATION AND ASSISTANCE. </heading>
<subsection style="-uslm-dtd:subsection" identifier="/us/sComp/113/97/tI/s105/a" styleType="OLC">
<num style="-uslm-dtd:enum" value="a">(a) </num><heading style="-uslm-dtd:header">Definition.—</heading><content style="-uslm-dtd:text">In this section, the term “<quotedText style="-uslm-dtd:quote">CSEC plan</quotedText>” has the meaning given that term in subsection (f)(1) of section 210 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1060(f)(1)) (as added by this Act).</content>
</subsection>
<subsection style="-uslm-dtd:subsection" identifier="/us/sComp/113/97/tI/s105/b" styleType="OLC">
<num style="-uslm-dtd:enum" value="b">(b) </num><heading style="-uslm-dtd:header">Education.—</heading><content style="-uslm-dtd:text">The Participant and Plan Sponsor Advocate established under section 4004 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1304) 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 (29 U.S.C. 1304(b)).</content>
</subsection>
</section>
<num style="-uslm-dtd:enum" value="II">TITLE II—</num><heading style="-uslm-dtd:header">AMENDMENTS TO INTERNAL REVENUE CODE OF 1986 </heading>
<section style="-uslm-dtd:section" identifier="/us/sComp/113/97/tII/s201" styleType="OLC">
<num style="-uslm-dtd:enum" value="201">SEC. 201. </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t26/s414">26 U.S.C. 414</ref><b>]</b> </editorialNote><heading style="-uslm-dtd:header">DEFINITION OF COOPERATIVE AND SMALL EMPLOYER CHARITY PENSION PLANS. </heading>
<content style="-uslm-dtd:text" class="block">Section 414 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:<quotedContent style="-uslm-dtd:quoted-block">
<subsection style="-uslm-dtd:subsection" styleType="OLC">
<num style="-uslm-dtd:enum" value="y">“(y) </num><heading style="-uslm-dtd:header">Cooperative and Small Employer Charity Pension Plans. </heading>
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="1">“(1) </num><heading style="-uslm-dtd:header">In general. </heading><chapeau style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><chapeau style="-uslm-dtd:text">to which section 104 of the Pension Protection Act of 2006 applies, without regard to—</chapeau>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="i">“(i) </num><content style="-uslm-dtd:text">section 104(a)(2) of such Act;</content>
</clause>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="ii">“(ii) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="iii">“(iii) </num><content style="-uslm-dtd:text">paragraph (3)(B); or</content>
</clause>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="2">“(2) </num><heading style="-uslm-dtd:header">Aggregation. </heading><content style="-uslm-dtd:text">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>.</content>
</section>
<section style="-uslm-dtd:section" identifier="/us/sComp/113/97/tII/s202" styleType="OLC">
<num style="-uslm-dtd:enum" value="202">SEC. 202. </num><heading style="-uslm-dtd:header">FUNDING RULES APPLICABLE TO COOPERATIVE AND SMALL EMPLOYER CHARITY PENSION PLANS. </heading>
<subsection style="-uslm-dtd:subsection" identifier="/us/sComp/113/97/tII/s202/a" styleType="OLC">
<num style="-uslm-dtd:enum" value="a">(a) </num><heading style="-uslm-dtd:header">In General.—</heading><content style="-uslm-dtd:text">Subpart A of part III of subchapter D of chapter 1 of subtitle A of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:<quotedContent style="-uslm-dtd:quoted-block">
<section style="-uslm-dtd:section" styleType="OLC">
<num style="-uslm-dtd:enum" value="433">“SEC. 433. </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t26/s433">26 U.S.C. 433</ref><b>]</b> </editorialNote><heading style="-uslm-dtd:header">MINIMUM FUNDING STANDARDS </heading>
<subsection style="-uslm-dtd:subsection" styleType="OLC">
<num style="-uslm-dtd:enum" value="a">“(a) </num><heading style="-uslm-dtd:header">General Rule. </heading><content style="-uslm-dtd:text">For purposes of section 412, the term ‘<quotedText style="-uslm-dtd:quote">accumulated funding deficiency</quotedText>’ 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 style="-uslm-dtd:subsection" styleType="OLC">
<num style="-uslm-dtd:enum" value="b">“(b) </num><heading style="-uslm-dtd:header">Funding Standard Account. </heading>
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="1">“(1) </num><heading style="-uslm-dtd:header">Account required. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="2">“(2) </num><heading style="-uslm-dtd:header">Charges to account. </heading><chapeau style="-uslm-dtd:text">For a plan year, the funding standard account shall be charged with the sum of—</chapeau>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><content style="-uslm-dtd:text">the normal cost of the plan for the plan year,</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><chapeau style="-uslm-dtd:text">the amounts necessary to amortize in equal annual installments (until fully amortized)—</chapeau>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="i">“(i) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="ii">“(ii) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="iii">“(iii) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="iv">“(iv) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="v">“(v) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="C">“(C) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="D">“(D) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="E">“(E) </num><content style="-uslm-dtd:text">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 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 style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="3">“(3) </num><heading style="-uslm-dtd:header">Credits to account. </heading><chapeau style="-uslm-dtd:text">For a plan year, the funding standard account shall be credited with the sum of—</chapeau>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><content style="-uslm-dtd:text">the amount considered contributed by the employer to or under the plan for the plan year,</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><chapeau style="-uslm-dtd:text">the amount necessary to amortize in equal annual installments (until fully amortized)—</chapeau>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="i">“(i) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="ii">“(ii) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="iii">“(iii) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="C">“(C) </num><content style="-uslm-dtd:text">the amount of the waived funding deficiency (within the meaning of section 412(c)(3)) for the plan year, and</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="D">“(D) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="4">“(4) </num><heading style="-uslm-dtd:header">Combining and offsetting amounts to be amortized. </heading><chapeau style="-uslm-dtd:text">Under regulations prescribed by the Secretary, amounts required to be amortized under paragraph (2) or paragraph (3), as the case may be—</chapeau>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="5">“(5) </num><heading style="-uslm-dtd:header">Interest. </heading>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><heading style="-uslm-dtd:header">In general. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><heading style="-uslm-dtd:header">Exception. </heading><chapeau style="-uslm-dtd:text">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 style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="i">“(i) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="ii">“(ii) </num><content style="-uslm-dtd:text">the rate of interest determined under subparagraph (A).</content>
</clause>
</subparagraph>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="6">“(6) </num><heading style="-uslm-dtd:header">Amortization schedules in effect. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:subsection" styleType="OLC">
<num style="-uslm-dtd:enum" value="c">“(c) </num><heading style="-uslm-dtd:header">Special Rules. </heading>
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="1">“(1) </num><heading style="-uslm-dtd:header">Determinations to be made under funding method. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="2">“(2) </num><heading style="-uslm-dtd:header">Valuation of assets. </heading>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><heading style="-uslm-dtd:header">In general. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><heading style="-uslm-dtd:header">Dedicated bond portfolio. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="3">“(3) </num><heading style="-uslm-dtd:header">Actuarial assumptions must be reasonable. </heading><chapeau style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><content style="-uslm-dtd:text">each of which is reasonable (taking into account the experience of the plan and reasonable expectations), and</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><content style="-uslm-dtd:text">which, in combination, offer the actuary’s best estimate of anticipated experience under the plan.</content>
</subparagraph>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="4">“(4) </num><heading style="-uslm-dtd:header">Treatment of certain changes as experience gain or loss. </heading><chapeau style="-uslm-dtd:text">For purposes of this section, if—</chapeau>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><content style="-uslm-dtd:text">a change in benefits under the Social Security Act or in other retirement benefits created under Federal or State law, or</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><content style="-uslm-dtd:text">a change in the definition of the term ‘<quotedText style="-uslm-dtd:quote">wages</quotedText>’ 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 style="-uslm-dtd:continuation-text" role="paragraph">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 style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="5">“(5) </num><heading style="-uslm-dtd:header">Funding method and plan year. </heading>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><heading style="-uslm-dtd:header">Funding methods available. </heading><content style="-uslm-dtd:text">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.</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><heading style="-uslm-dtd:header">Changes. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="C">“(C) </num><heading style="-uslm-dtd:header">Approval required for certain changes in assumptions by certain single-employer plans subject to additional funding requirement. </heading>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="i">“(i) </num><heading style="-uslm-dtd:header">In general. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="ii">“(ii) </num><heading style="-uslm-dtd:header">Plans to which subparagraph applies. </heading><chapeau style="-uslm-dtd:text">This subparagraph shall apply to a plan only if—</chapeau>
<subclause style="-uslm-dtd:subclause" styleType="OLC">
<num style="-uslm-dtd:enum" value="I">“(I) </num><content style="-uslm-dtd:text">the plan is a CSEC plan,</content>
</subclause>
<subclause style="-uslm-dtd:subclause" styleType="OLC">
<num style="-uslm-dtd:enum" value="II">“(II) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:subclause" styleType="OLC">
<num style="-uslm-dtd:enum" value="III">“(III) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="6">“(6) </num><heading style="-uslm-dtd:header">Full funding. </heading><chapeau style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><content style="-uslm-dtd:text">the funding standard account shall be credited with the amount of such excess, and</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="7">“(7) </num><heading style="-uslm-dtd:header">Full-funding limitation. </heading><chapeau style="-uslm-dtd:text">For purposes of paragraph (6), the term ‘<quotedText style="-uslm-dtd:quote">full-funding limitation</quotedText>’ means the excess (if any) of—</chapeau>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><chapeau style="-uslm-dtd:text">the lesser of—</chapeau>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="i">“(i) </num><content style="-uslm-dtd:text">the fair market value of the plan’s assets, or</content>
</clause>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="ii">“(ii) </num><content style="-uslm-dtd:text">the value of such assets determined under paragraph (2).</content>
</clause>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="C">“(C) </num><heading style="-uslm-dtd:header">Minimum amount. </heading>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="i">“(i) </num><heading style="-uslm-dtd:header">In general. </heading><chapeau style="-uslm-dtd:text">In no event shall the full-funding limitation determined under subparagraph (A) be less than the excess (if any) of—</chapeau>
<subclause style="-uslm-dtd:subclause" styleType="OLC">
<num style="-uslm-dtd:enum" value="I">“(I) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:subclause" styleType="OLC">
<num style="-uslm-dtd:enum" value="II">“(II) </num><content style="-uslm-dtd:text">the value of the plan’s assets determined under paragraph (2).</content>
</subclause>
</clause>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="ii">“(ii) </num><heading style="-uslm-dtd:header">Assets. </heading><content style="-uslm-dtd:text">For purposes of clause (i), assets shall not be reduced by any credit balance in the funding standard account.</content>
</clause>
</subparagraph>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="8">“(8) </num><heading style="-uslm-dtd:header">Annual valuation. </heading>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><heading style="-uslm-dtd:header">In general. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><heading style="-uslm-dtd:header">Valuation date. </heading>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="i">“(i) </num><heading style="-uslm-dtd:header">Current year. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="ii">“(ii) </num><heading style="-uslm-dtd:header">Use of prior year valuation. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="iii">“(iii) </num><heading style="-uslm-dtd:header">Adjustments. </heading><content style="-uslm-dtd:text">Information under clause (ii) shall, in accordance with regulations, be actuarially adjusted to reflect significant differences in participants.</content>
</clause>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="iv">“(iv) </num><heading style="-uslm-dtd:header">Limitation. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="9">“(9) </num><heading style="-uslm-dtd:header">Time when certain contributions deemed made. </heading><chapeau style="-uslm-dtd:text">For purposes of this section, any contributions for a plan year made by an employer during the period—</chapeau>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><content style="-uslm-dtd:text">beginning on the day after the last day of such plan year, and</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><content style="-uslm-dtd:text">ending on the day which is 8½ months after the close of the plan year,</content>
</subparagraph><continuation style="-uslm-dtd:continuation-text" role="paragraph">shall be deemed to have been made on such last day.</continuation>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="10">“(10) </num><heading style="-uslm-dtd:header">Anticipation of benefit increases effective in the future. </heading><content style="-uslm-dtd:text">In determining projected benefits, the funding method of a collectively bargained CSEC plan described in section 413(a) shall anticipate benefit increases scheduled to take effect during the term of the collective bargaining agreement applicable to the plan.</content>
</paragraph>
</subsection>
<subsection style="-uslm-dtd:subsection" styleType="OLC">
<num style="-uslm-dtd:enum" value="d">“(d) </num><heading style="-uslm-dtd:header">Extension of Amortization Periods. </heading><chapeau style="-uslm-dtd:text">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 style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="1">“(1) </num><content style="-uslm-dtd:text">a substantial risk to the voluntary continuation of the plan, or</content>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="2">“(2) </num><content style="-uslm-dtd:text">a substantial curtailment of pension benefit levels or employee compensation.</content>
</paragraph>
</subsection>
<subsection style="-uslm-dtd:subsection" styleType="OLC">
<num style="-uslm-dtd:enum" value="e">“(e) </num><heading style="-uslm-dtd:header">Alternative Minimum Funding Standard. </heading>
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="1">“(1) </num><heading style="-uslm-dtd:header">In general. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="2">“(2) </num><heading style="-uslm-dtd:header">Charges and credits to account. </heading><chapeau style="-uslm-dtd:text">For a plan year the alternative minimum funding standard account shall be—</chapeau>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><chapeau style="-uslm-dtd:text">charged with the sum of—</chapeau>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="i">“(i) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="ii">“(ii) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="iii">“(iii) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><content style="-uslm-dtd:text">credited with the amount considered contributed by the employer to or under the plan for the plan year.</content>
</subparagraph>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="3">“(3) </num><heading style="-uslm-dtd:header">Interest. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:subsection" styleType="OLC">
<num style="-uslm-dtd:enum" value="f">“(f) </num><heading style="-uslm-dtd:header">Quarterly Contributions Required. </heading>
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="1">“(1) </num><heading style="-uslm-dtd:header">In general. </heading><chapeau style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><content style="-uslm-dtd:text">the rate of interest used under the plan in determining costs.</content>
</subparagraph>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="2">“(2) </num><heading style="-uslm-dtd:header">Amount of underpayment, period of underpayment. </heading><chapeau style="-uslm-dtd:text">For purposes of paragraph (1)—</chapeau>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><heading style="-uslm-dtd:header">Amount. </heading><chapeau style="-uslm-dtd:text">The amount of the underpayment shall be the excess of—</chapeau>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="i">“(i) </num><content style="-uslm-dtd:text">the required installment, over</content>
</clause>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="ii">“(ii) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><heading style="-uslm-dtd:header">Period of underpayment. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="C">“(C) </num><heading style="-uslm-dtd:header">Order of crediting contributions. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="3">“(3) </num><heading style="-uslm-dtd:header">Number of required installments; due dates. </heading><chapeau style="-uslm-dtd:text">For purposes of this subsection—</chapeau>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><heading style="-uslm-dtd:header">Payable in 4 installments. </heading><content style="-uslm-dtd:text">There shall be 4 required installments for each plan year.</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><heading style="-uslm-dtd:header">Time for payment of installments. </heading><foreign id="warning-d951182e2315" note="processing mode: unknown" role="passthroughContent"><compsdtd:table xmlns:compsdtd="http://schemas.gpo.gov/xml/comps-dtd" line-rules="no-gen" blank-lines-before="0" blank-lines-after="0"><compsdtd:ttitle>
</compsdtd:ttitle><compsdtd:tgroup cols="2" ttitle-size="0" thead-tbody-ldg-size="10.10.12"><compsdtd:colspec colname="col1" coldef="txt" min-data-value="150" /><compsdtd:colspec colname="col2" align="right" coldef="txt-no-ldr" min-data-value="150" /><compsdtd:thead><compsdtd:row><compsdtd:entry align="left" colname="col1">
<compsdtd:bold>``In the case of the following required installments:</compsdtd:bold>
</compsdtd:entry><compsdtd:entry align="right" colname="col2">
<compsdtd:bold>The due date is:</compsdtd:bold>
</compsdtd:entry></compsdtd:row></compsdtd:thead><compsdtd:tbody><compsdtd:row><compsdtd:entry stub-definition="txt-ldr" stub-hierarchy="1" colname="col1">1st</compsdtd:entry><compsdtd:entry colname="col2">April 15 </compsdtd:entry></compsdtd:row><compsdtd:row><compsdtd:entry stub-definition="txt-ldr" stub-hierarchy="1" colname="col1">2nd</compsdtd:entry><compsdtd:entry colname="col2">July 15 </compsdtd:entry></compsdtd:row><compsdtd:row><compsdtd:entry stub-definition="txt-ldr" stub-hierarchy="1" colname="col1">3rd</compsdtd:entry><compsdtd:entry colname="col2">October 15 </compsdtd:entry></compsdtd:row><compsdtd:row><compsdtd:entry stub-definition="txt-ldr" stub-hierarchy="1" colname="col1">4th</compsdtd:entry><compsdtd:entry colname="col2">January 15 of the following year.</compsdtd:entry></compsdtd:row></compsdtd:tbody></compsdtd:tgroup></compsdtd:table></foreign>
</subparagraph>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="4">“(4) </num><heading style="-uslm-dtd:header">Amount of required installment. </heading><chapeau style="-uslm-dtd:text">For purposes of this subsection—</chapeau>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><heading style="-uslm-dtd:header">In general. </heading><content style="-uslm-dtd:text">The amount of any required installment shall be 25 percent of the required annual payment.</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><heading style="-uslm-dtd:header">Required annual payment. </heading><chapeau style="-uslm-dtd:text">For purposes of subparagraph (A), the term ‘<quotedText style="-uslm-dtd:quote">required annual payment</quotedText>’ means the lesser of—</chapeau>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="i">“(i) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="ii">“(ii) </num><content style="-uslm-dtd:text">100 percent of the amount so required for the preceding plan year.</content>
</clause><continuation style="-uslm-dtd:continuation-text" role="subparagraph">Clause (ii) shall not apply if the preceding plan year was not a year of 12 months.</continuation>
</subparagraph>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="5">“(5) </num><heading style="-uslm-dtd:header">Liquidity requirement. </heading>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><heading style="-uslm-dtd:header">In general. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><heading style="-uslm-dtd:header">Plans to which paragraph applies. </heading><chapeau style="-uslm-dtd:text">This paragraph shall apply to a CSEC plan other than a plan 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 style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="i">“(i) </num><content style="-uslm-dtd:text">is required to pay installments under this subsection for a plan year, and</content>
</clause>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="ii">“(ii) </num><content style="-uslm-dtd:text">has a liquidity shortfall for any quarter during such plan year.</content>
</clause>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="C">“(C) </num><heading style="-uslm-dtd:header">Period of underpayment. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="D">“(D) </num><heading style="-uslm-dtd:header">Limitation on increase. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="E">“(E) </num><heading style="-uslm-dtd:header">Definitions. </heading><chapeau style="-uslm-dtd:text">For purposes of this paragraph—</chapeau>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="i">“(i) </num><heading style="-uslm-dtd:header">Liquidity shortfall. </heading><content style="-uslm-dtd:text">The term ‘<quotedText style="-uslm-dtd:quote">liquidity shortfall</quotedText>’ 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 style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="ii">“(ii) </num><heading style="-uslm-dtd:header">Base amount. </heading>
<subclause style="-uslm-dtd:subclause" styleType="OLC">
<num style="-uslm-dtd:enum" value="I">“(I) </num><heading style="-uslm-dtd:header">In general. </heading><content style="-uslm-dtd:text">The term ‘<quotedText style="-uslm-dtd:quote">base amount</quotedText>’ 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 style="-uslm-dtd:subclause" styleType="OLC">
<num style="-uslm-dtd:enum" value="II">“(II) </num><heading style="-uslm-dtd:header">Special rule. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="iii">“(iii) </num><heading style="-uslm-dtd:header">Disbursements from the plan. </heading><content style="-uslm-dtd:text">The term ‘<quotedText style="-uslm-dtd:quote">disbursements from the plan</quotedText>’ means all disbursements from the trust, including purchases of annuities, payments of single sums and other benefits, and administrative expenses.</content>
</clause>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="iv">“(iv) </num><heading style="-uslm-dtd:header">Adjusted disbursements. </heading><chapeau style="-uslm-dtd:text">The term ‘<quotedText style="-uslm-dtd:quote">adjusted disbursements</quotedText>’ means disbursements from the plan reduced by the product of—</chapeau>
<subclause style="-uslm-dtd:subclause" styleType="OLC">
<num style="-uslm-dtd:enum" value="I">“(I) </num><content style="-uslm-dtd:text">the plan’s funded current liability percentage for the plan year, and</content>
</subclause>
<subclause style="-uslm-dtd:subclause" styleType="OLC">
<num style="-uslm-dtd:enum" value="II">“(II) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="v">“(v) </num><heading style="-uslm-dtd:header">Liquid assets. </heading><content style="-uslm-dtd:text">The term ‘<quotedText style="-uslm-dtd:quote">liquid assets</quotedText>’ means cash, marketable securities and such other assets as specified by the Secretary in regulations.</content>
</clause>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="vi">“(vi) </num><heading style="-uslm-dtd:header">Quarter. </heading><content style="-uslm-dtd:text">The term ‘<quotedText style="-uslm-dtd:quote">quarter</quotedText>’ 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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="F">“(F) </num><heading style="-uslm-dtd:header">Regulations. </heading><content style="-uslm-dtd:text">The Secretary may prescribe such regulations as are necessary to carry out this paragraph.</content>
</subparagraph>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="6">“(6) </num><heading style="-uslm-dtd:header">Fiscal years and short years. </heading>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><heading style="-uslm-dtd:header">Fiscal years. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><heading style="-uslm-dtd:header">Short plan year. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:subsection" styleType="OLC">
<num style="-uslm-dtd:enum" value="g">“(g) </num><heading style="-uslm-dtd:header">Imposition of Lien Where Failure To Make Required Contributions. </heading>
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="1">“(1) </num><heading style="-uslm-dtd:header">In general. </heading><chapeau style="-uslm-dtd:text">In the case of a plan to which this section applies, if—</chapeau>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:continuation-text" role="paragraph">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 style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="2">“(2) </num><heading style="-uslm-dtd:header">Plans to which subsection applies. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="3">“(3) </num><heading style="-uslm-dtd:header">Amount of lien. </heading><chapeau style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><content style="-uslm-dtd:text">for plan years beginning after 1987, and</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><content style="-uslm-dtd:text">for which payment has not been made before the due date.</content>
</subparagraph>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="4">“(4) </num><heading style="-uslm-dtd:header">Notice of failure; lien. </heading>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><heading style="-uslm-dtd:header">Notice of failure. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><heading style="-uslm-dtd:header">Period of lien. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="C">“(C) </num><heading style="-uslm-dtd:header">Certain rules to apply. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="5">“(5) </num><heading style="-uslm-dtd:header">Enforcement. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="6">“(6) </num><heading style="-uslm-dtd:header">Definitions. </heading><chapeau style="-uslm-dtd:text">For purposes of this subsection—</chapeau>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><heading style="-uslm-dtd:header">Due date; required installment. </heading><content style="-uslm-dtd:text">The terms ‘<quotedText style="-uslm-dtd:quote">due date</quotedText>’ and ‘<quotedText style="-uslm-dtd:quote">required installment</quotedText>’ 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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><heading style="-uslm-dtd:header">Controlled group. </heading><content style="-uslm-dtd:text">The term ‘<quotedText style="-uslm-dtd:quote">controlled group</quotedText>’ means any group treated as a single employer under subsections (b), (c), (m), and (o) of section 414.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection style="-uslm-dtd:subsection" styleType="OLC">
<num style="-uslm-dtd:enum" value="h">“(h) </num><heading style="-uslm-dtd:header">Current Liability. </heading><chapeau style="-uslm-dtd:text">For purposes of this section—</chapeau>
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="1">“(1) </num><heading style="-uslm-dtd:header">In general. </heading><content style="-uslm-dtd:text">The term ‘<quotedText style="-uslm-dtd:quote">current liability</quotedText>’ means all liabilities to employees and their beneficiaries under the plan.</content>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="2">“(2) </num><heading style="-uslm-dtd:header">Treatment of unpredictable contingent event benefits. </heading>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><heading style="-uslm-dtd:header">In general. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><heading style="-uslm-dtd:header">Unpredictable contingent event benefit. </heading><chapeau style="-uslm-dtd:text">The term ‘<quotedText style="-uslm-dtd:quote">unpredictable contingent event benefit</quotedText>’ means any benefit contingent on an event other than—</chapeau>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="i">“(i) </num><content style="-uslm-dtd:text">age, service, compensation, death, or disability, or</content>
</clause>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="ii">“(ii) </num><content style="-uslm-dtd:text">an event which is reasonably and reliably predictable (as determined by the Secretary).</content>
</clause>
</subparagraph>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="3">“(3) </num><heading style="-uslm-dtd:header">Interest rate and mortality assumptions used. </heading>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><heading style="-uslm-dtd:header">Interest rate. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><heading style="-uslm-dtd:header">Mortality tables. </heading>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="i">“(i) </num><heading style="-uslm-dtd:header">Secretarial authority. </heading><content style="-uslm-dtd:text">The Secretary 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 shall take into account results of available independent studies of mortality of individuals covered by pension plans.</content>
</clause>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="ii">“(ii) </num><heading style="-uslm-dtd:header">Periodic review. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="C">“(C) </num><heading style="-uslm-dtd:header">Separate mortality tables for the disabled. </heading><chapeau style="-uslm-dtd:text">Notwithstanding subparagraph (B)—</chapeau>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="i">“(i) </num><heading style="-uslm-dtd:header">In general. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="ii">“(ii) </num><heading style="-uslm-dtd:header">Special rule for disabilities occurring after 1994. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="4">“(4) </num><heading style="-uslm-dtd:header">Certain service disregarded. </heading>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><heading style="-uslm-dtd:header">In general. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><heading style="-uslm-dtd:header">Applicable percentage. </heading><content style="-uslm-dtd:text">For purposes of this subparagraph, the applicable percentage shall be determined as follows:<foreign id="warning-d951182e2703" note="processing mode: unknown" role="passthroughContent"><compsdtd:table xmlns:compsdtd="http://schemas.gpo.gov/xml/comps-dtd" line-rules="no-gen" blank-lines-before="0" blank-lines-after="0"><compsdtd:ttitle>
</compsdtd:ttitle><compsdtd:tgroup cols="2" ttitle-size="0" thead-tbody-ldg-size="10.10.12"><compsdtd:colspec colname="col1" coldef="txt" min-data-value="150" /><compsdtd:colspec colname="col2" coldef="fig" min-data-value="27" /><compsdtd:thead><compsdtd:row><compsdtd:entry align="left" colname="col1">
<compsdtd:bold>``If the years of participation </compsdtd:bold>
<compsdtd:linebreak />
<compsdtd:bold>are:</compsdtd:bold>
</compsdtd:entry><compsdtd:entry align="right" colname="col2">
<compsdtd:bold>The applicable percentage is:</compsdtd:bold>
</compsdtd:entry></compsdtd:row></compsdtd:thead><compsdtd:tbody><compsdtd:row><compsdtd:entry stub-definition="txt-ldr" stub-hierarchy="1" colname="col1">1</compsdtd:entry><compsdtd:entry leader-modify="clr-ldr" colname="col2">20</compsdtd:entry></compsdtd:row><compsdtd:row><compsdtd:entry stub-definition="txt-ldr" stub-hierarchy="1" colname="col1">2</compsdtd:entry><compsdtd:entry leader-modify="clr-ldr" colname="col2">40</compsdtd:entry></compsdtd:row><compsdtd:row><compsdtd:entry stub-definition="txt-ldr" stub-hierarchy="1" colname="col1">3</compsdtd:entry><compsdtd:entry leader-modify="clr-ldr" colname="col2">60</compsdtd:entry></compsdtd:row><compsdtd:row><compsdtd:entry stub-definition="txt-ldr" stub-hierarchy="1" colname="col1">4</compsdtd:entry><compsdtd:entry leader-modify="clr-ldr" colname="col2">80</compsdtd:entry></compsdtd:row><compsdtd:row><compsdtd:entry stub-definition="txt-ldr" stub-hierarchy="1" colname="col1">5 or more</compsdtd:entry><compsdtd:entry leader-modify="clr-ldr" colname="col2">100.</compsdtd:entry></compsdtd:row></compsdtd:tbody></compsdtd:tgroup></compsdtd:table></foreign></content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="C">“(C) </num><heading style="-uslm-dtd:header">Participants to whom paragraph applies. </heading><chapeau style="-uslm-dtd:text">This subparagraph shall apply to any participant who, at the time of becoming a participant—</chapeau>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="i">“(i) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="ii">“(ii) </num><content style="-uslm-dtd:text">who first becomes a participant under the plan in a plan year beginning after December 31, 1987, and</content>
</clause>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="iii">“(iii) </num><content style="-uslm-dtd:text">has years of service greater than the minimum years of service necessary for eligibility to participate in the plan.</content>
</clause>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="D">“(D) </num><heading style="-uslm-dtd:header">Election. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:subsection" styleType="OLC">
<num style="-uslm-dtd:enum" value="i">“(i) </num><heading style="-uslm-dtd:header">Funded Current Liability Percentage. </heading><chapeau style="-uslm-dtd:text">For purposes of this section, the term ‘<quotedText style="-uslm-dtd:quote">funded current liability percentage</quotedText>’ means, with respect to any plan year, the percentage which—</chapeau>
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="1">“(1) </num><content style="-uslm-dtd:text">the value of the plan’s assets determined under subsection (c)(2), is of</content>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="2">“(2) </num><content style="-uslm-dtd:text">the current liability under the plan.</content>
</paragraph>
</subsection>
<subsection style="-uslm-dtd:subsection" styleType="OLC">
<num style="-uslm-dtd:enum" value="j">“(j) </num><heading style="-uslm-dtd:header">Funding Restoration Status. </heading><chapeau style="-uslm-dtd:text">Notwithstanding any other provisions of this section—</chapeau>
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="1">“(1) </num><heading style="-uslm-dtd:header">Normal cost payment. </heading>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><heading style="-uslm-dtd:header">In general. </heading><chapeau style="-uslm-dtd:text">In the case of a CSEC plan that is in funding restoration status for a plan year, for purposes of section 412, the term ‘<quotedText style="-uslm-dtd:quote">accumulated funding deficiency</quotedText>’ means, for such plan year, the greater of—</chapeau>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="i">“(i) </num><content style="-uslm-dtd:text">the amount described in subsection (a), or</content>
</clause>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="ii">“(ii) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><heading style="-uslm-dtd:header">Normal cost. </heading><content style="-uslm-dtd:text">In the case of a CSEC plan that uses a spread gain funding method, for purposes of this subsection, the term ‘<quotedText style="-uslm-dtd:quote">normal cost</quotedText>’ means normal cost as determined under the entry age normal funding method.</content>
</subparagraph>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="2">“(2) </num><heading style="-uslm-dtd:header">Plan amendments. </heading><content style="-uslm-dtd:text">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 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 style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="3">“(3) </num><heading style="-uslm-dtd:header">Funding restoration plan. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="4">“(4) </num><heading style="-uslm-dtd:header">Annual certification by plan actuary. </heading><chapeau style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><content style="-uslm-dtd:text">the amount of any contributions reasonably anticipated to be made for the preceding plan year.</content>
</subparagraph><continuation style="-uslm-dtd:continuation-text" role="paragraph">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 style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="5">“(5) </num><heading style="-uslm-dtd:header">Definitions. </heading><chapeau style="-uslm-dtd:text">For purposes of this subsection—</chapeau>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><heading style="-uslm-dtd:header">Funding restoration status. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><heading style="-uslm-dtd:header">Funded percentage. </heading><chapeau style="-uslm-dtd:text">The term ‘<quotedText style="-uslm-dtd:quote">funded percentage</quotedText>’ means the ratio (expressed as a percentage) which—</chapeau>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="i">“(i) </num><content style="-uslm-dtd:text">the value of plan assets (as determined under subsection (c)(2)), bears to</content>
</clause>
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="ii">“(ii) </num><content style="-uslm-dtd:text">the plan’s funding liability.</content>
</clause>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="C">“(C) </num><heading style="-uslm-dtd:header">Funding liability. </heading><content style="-uslm-dtd:text">The term ‘<quotedText style="-uslm-dtd:quote">funding liability</quotedText>’ 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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="D">“(D) </num><heading style="-uslm-dtd:header">Spread gain funding method. </heading><content style="-uslm-dtd:text">The term ‘<quotedText style="-uslm-dtd:quote">spread gain funding method</quotedText>’ has the meaning given such term under rules and forms issued by the Secretary.</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="E">“(E) </num><heading style="-uslm-dtd:header">Plan sponsor. </heading><content style="-uslm-dtd:text">The term ‘<quotedText style="-uslm-dtd:quote">plan sponsor</quotedText>’ 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 style="-uslm-dtd:subsection" identifier="/us/sComp/113/97/tII/s202/b" styleType="OLC">
<num style="-uslm-dtd:enum" value="b">(b) </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t26/s413">26 U.S.C. 413</ref><b>]</b> </editorialNote><heading style="-uslm-dtd:header">CSEC Plans.—</heading><content style="-uslm-dtd:text">Section 413 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:<quotedContent style="-uslm-dtd:quoted-block">
<subsection style="-uslm-dtd:subsection" styleType="OLC">
<num style="-uslm-dtd:enum" value="d">“(d) </num><heading style="-uslm-dtd:header">CSEC Plans. </heading><chapeau style="-uslm-dtd:text">Notwithstanding any other provision of this section, in the case of a CSEC plan—</chapeau>
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="1">“(1) </num><heading style="-uslm-dtd:header">Funding. </heading><content style="-uslm-dtd:text">The requirements of section 412 shall be determined as if all participants in the plan were employed by a single employer.</content>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="2">“(2) </num><heading style="-uslm-dtd:header">Application of provisions. </heading><content style="-uslm-dtd:text">Paragraphs (1), (2), (3), and (5) of subsection (c) shall apply.</content>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="3">“(3) </num><heading style="-uslm-dtd:header">Deduction limitations. </heading><content style="-uslm-dtd:text">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 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 style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="4">“(4) </num><heading style="-uslm-dtd:header">Allocations. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:subsection" identifier="/us/sComp/113/97/tII/s202/c" styleType="OLC">
<num style="-uslm-dtd:enum" value="c">(c) </num><heading style="-uslm-dtd:header">Separate Rules for CSEC Plans.—</heading>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/113/97/tII/s202/c/1" styleType="OLC">
<num style="-uslm-dtd:enum" value="1">(1) </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t26/s412">26 U.S.C. 412</ref><b>]</b> </editorialNote><heading style="-uslm-dtd:header">In general.—</heading><content style="-uslm-dtd:text">Paragraph (2) of section 412(a) of the Internal Revenue Code of 1986 is amended by striking “<quotedText style="-uslm-dtd:quote">and</quotedText>” at the end of subparagraph (B), by striking the period at the end of subparagraph (C) and inserting “<quotedText style="-uslm-dtd:quote">, and</quotedText>”, and by inserting at the end thereof the following new subparagraph:<quotedContent style="-uslm-dtd:quoted-block">
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="D">“(D) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:paragraph" identifier="/us/sComp/113/97/tII/s202/c/2" styleType="OLC">
<num style="-uslm-dtd:enum" value="2">(2) </num><heading style="-uslm-dtd:header">Conforming amendments.—</heading><chapeau style="-uslm-dtd:text">Section 412 of such Code is amended—</chapeau>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/113/97/tII/s202/c/2/A" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">(A) </num><content style="-uslm-dtd:text">by striking “<quotedText style="-uslm-dtd:quote">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 inserting “<quotedText style="-uslm-dtd:quote">multiemployer plan or a CSEC plan</quotedText>”,</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/113/97/tII/s202/c/2/B" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">(B) </num><content style="-uslm-dtd:text">by striking “<quotedText style="-uslm-dtd:quote">430(j)</quotedText>” in paragraph (1) of subsection (b) and inserting “<quotedText style="-uslm-dtd:quote">430(j) or under section 433(f)</quotedText>”,</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/113/97/tII/s202/c/2/C" styleType="OLC">
<num style="-uslm-dtd:enum" value="C">(C)</num><clause style="-uslm-dtd:clause" identifier="/us/sComp/113/97/tII/s202/c/2/C/i" styleType="OLC" class="inline"><num style="-uslm-dtd:enum" value="i">(i) </num><content style="-uslm-dtd:text">by striking “<quotedText style="-uslm-dtd:quote">and</quotedText>” at the end of clause (i) of subsection (c)(1)(B),</content></clause>
<clause style="-uslm-dtd:clause" identifier="/us/sComp/113/97/tII/s202/c/2/C/ii" styleType="OLC" class="leftIndentDecrease1">
<num style="-uslm-dtd:enum" value="ii">(ii) </num><content style="-uslm-dtd:text">by striking the period at the end of clause (ii) of subsection (c)(1)(B) and inserting “<quotedText style="-uslm-dtd:quote">, and</quotedText>”, and</content>
</clause>
<clause style="-uslm-dtd:clause" identifier="/us/sComp/113/97/tII/s202/c/2/C/iii" styleType="OLC" class="leftIndentDecrease1">
<num style="-uslm-dtd:enum" value="iii">(iii) </num><content style="-uslm-dtd:text">by inserting the following new clause after clause (ii) of subsection (c)(1)(B):<quotedContent style="-uslm-dtd:quoted-block">
<clause style="-uslm-dtd:clause" styleType="OLC">
<num style="-uslm-dtd:enum" value="iii">“(iii) </num><content style="-uslm-dtd:text">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>
</clause></quotedContent>,</content>
</clause>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/113/97/tII/s202/c/2/D" styleType="OLC">
<num style="-uslm-dtd:enum" value="D">(D) </num><content style="-uslm-dtd:text">by striking “<quotedText style="-uslm-dtd:quote">under paragraph (1)</quotedText>” in clause (i) of subsection (c)(4)(A) and inserting “<quotedText style="-uslm-dtd:quote">under paragraph (1) or for granting an extension under section 433(d)</quotedText>”,</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/113/97/tII/s202/c/2/E" styleType="OLC">
<num style="-uslm-dtd:enum" value="E">(E) </num><content style="-uslm-dtd:text">by striking “<quotedText style="-uslm-dtd:quote">waiver under this subsection</quotedText>” in subparagraph (B) of subsection (c)(4) and inserting “<quotedText style="-uslm-dtd:quote">waiver under this subsection or an extension under 433(d)</quotedText>”,</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/113/97/tII/s202/c/2/F" styleType="OLC">
<num style="-uslm-dtd:enum" value="F">(F) </num><content style="-uslm-dtd:text">by striking “<quotedText style="-uslm-dtd:quote">waiver or modification</quotedText>” in subclause (I) of subsection (c)(4)(B)(i) and inserting “<quotedText style="-uslm-dtd:quote">waiver, modification, or extension</quotedText>”,</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/113/97/tII/s202/c/2/G" styleType="OLC">
<num style="-uslm-dtd:enum" value="G">(G) </num><content style="-uslm-dtd:text">by striking “<quotedText style="-uslm-dtd:quote">waivers</quotedText>” in the heading of subsection (c)(4)(C) and of clause (ii) of subsection (c)(4)(C) and inserting “<quotedText style="-uslm-dtd:quote">waivers or extensions</quotedText>”,</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/113/97/tII/s202/c/2/H" styleType="OLC">
<num style="-uslm-dtd:enum" value="H">(H) </num><content style="-uslm-dtd:text">by striking “<quotedText style="-uslm-dtd:quote">section 431(d)</quotedText>” in subparagraph (A) of subsection (c)(7) and in paragraph (2) of subsection (d) and inserting “<quotedText style="-uslm-dtd:quote">section 431(d) or section 433(d)</quotedText>”,</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/113/97/tII/s202/c/2/I" styleType="OLC">
<num style="-uslm-dtd:enum" value="I">(I) </num><content style="-uslm-dtd:text">by striking “<quotedText style="-uslm-dtd:quote">and</quotedText>” at the end of subclause (I) of subsection (c)(4)(C)(i) and inserting “<quotedText style="-uslm-dtd:quote">or the accumulated funding deficiency under section 433, whichever is applicable,</quotedText>”,</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/113/97/tII/s202/c/2/J" styleType="OLC">
<num style="-uslm-dtd:enum" value="J">(J) </num><content style="-uslm-dtd:text">by striking “<quotedText style="-uslm-dtd:quote">430(e)(2),</quotedText>” in subclause (II) of subsection (c)(4)(C)(i) and inserting “<quotedText style="-uslm-dtd:quote">430(e)(2) or 433(b)(2)(C), whichever is applicable, and</quotedText>”,</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/113/97/tII/s202/c/2/K" styleType="OLC">
<num style="-uslm-dtd:enum" value="K">(K) </num><content style="-uslm-dtd:text">by adding immediately after subclause (II) of subsection (c)(4)(C)(i) the following new subclause:<quotedContent style="-uslm-dtd:quoted-block">
<subclause style="-uslm-dtd:subclause" styleType="OLC">
<num style="-uslm-dtd:enum" value="III">“(III) </num><content style="-uslm-dtd:text">the total amounts not paid by reason of an extension in effect under section 433(d),”</content>
</subclause></quotedContent>, and</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/113/97/tII/s202/c/2/L" styleType="OLC">
<num style="-uslm-dtd:enum" value="L">(L) </num><content style="-uslm-dtd:text">by striking “<quotedText style="-uslm-dtd:quote">for waivers of</quotedText>” in clause (ii) of subsection (c)(4)(C) and inserting “<quotedText style="-uslm-dtd:quote">for waivers or extensions with respect to</quotedText>”.</content>
</subparagraph>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/113/97/tII/s202/c/3" styleType="OLC">
<num style="-uslm-dtd:enum" value="3">(3) </num><heading style="-uslm-dtd:header">Benefit restrictions.—</heading>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/113/97/tII/s202/c/3/A" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">(A) </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t26/s401">26 U.S.C. 401</ref><b>]</b> </editorialNote><heading style="-uslm-dtd:header">In general.—</heading><content style="-uslm-dtd:text">Paragraph (29) of section 401(a) of such Code is amended by striking “<quotedText style="-uslm-dtd:quote">multiemployer plan</quotedText>” and inserting “<quotedText style="-uslm-dtd:quote">multiemployer plan or a CSEC plan</quotedText>”.</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/113/97/tII/s202/c/3/B" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">(B) </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t26/s436">26 U.S.C. 436</ref><b>]</b> </editorialNote><heading style="-uslm-dtd:header">Conforming change.—</heading><content style="-uslm-dtd:text">Subsection (a) of section 436 of such Code is amended by striking “<quotedText style="-uslm-dtd:quote">single-employer plan</quotedText>” and inserting “<quotedText style="-uslm-dtd:quote">single-employer plan (other than a CSEC plan)</quotedText>”.</content>
</subparagraph>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/113/97/tII/s202/c/4" styleType="OLC">
<num style="-uslm-dtd:enum" value="4">(4) </num><heading style="-uslm-dtd:header">Benefit increases.—</heading><content style="-uslm-dtd:text">Subparagraph (C) of section 401(a)(33) of such Code is amended by striking “<quotedText style="-uslm-dtd:quote">multiemployer plans</quotedText>” and inserting “<quotedText style="-uslm-dtd:quote">multiemployer plans or CSEC plans</quotedText>”.</content>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/113/97/tII/s202/c/5" styleType="OLC">
<num style="-uslm-dtd:enum" value="5">(5) </num><heading style="-uslm-dtd:header">Liquidity shortfalls.—</heading>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/113/97/tII/s202/c/5/A" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">(A) </num><heading style="-uslm-dtd:header">In general.—</heading><content style="-uslm-dtd:text">Subparagraph (A) of section 401(a)(32) of such Code is amended by striking “<quotedText style="-uslm-dtd:quote">430(j)(4)</quotedText>” each place it appears and inserting “<quotedText style="-uslm-dtd:quote">430(j)(4) or 433(f)(5)</quotedText>”.</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/113/97/tII/s202/c/5/B" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">(B) </num><heading style="-uslm-dtd:header">Period of shortfall.—</heading><content style="-uslm-dtd:text">Subparagraph (C) of section 401(a)(32) of such Code is amended by striking “<quotedText style="-uslm-dtd:quote">430(j)(3) by reason of section 430(j)(4)(A) thereof</quotedText>” and inserting “<quotedText style="-uslm-dtd:quote">430(j)(3) or 433(f) by reason of section 430(j)(4)(A) or 433(f)(5), respectively</quotedText>”.</content>
</subparagraph>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/113/97/tII/s202/c/6" styleType="OLC">
<num style="-uslm-dtd:enum" value="6">(6) </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t26/s404">26 U.S.C. 404</ref><b>]</b> </editorialNote><heading style="-uslm-dtd:header">Deduction limits.—</heading><content style="-uslm-dtd:text">Subsection (o) of section 404 of such Code is amended by adding at the end the following new paragraph:<quotedContent style="-uslm-dtd:quoted-block">
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="8">“(8) </num><heading style="-uslm-dtd:header">CSEC plans. </heading><content style="-uslm-dtd:text">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>.</content>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/113/97/tII/s202/c/7" styleType="OLC">
<num style="-uslm-dtd:enum" value="7">(7) </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t26/s420">26 U.S.C. 420</ref><b>]</b> </editorialNote><heading style="-uslm-dtd:header">Section 420.—</heading><content style="-uslm-dtd:text">Paragraph (5) of section 420(e) of such Code is amended by striking “<quotedText style="-uslm-dtd:quote">section 430</quotedText>” each place it appears and inserting “<quotedText style="-uslm-dtd:quote">sections 430 and 433</quotedText>”.</content>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/113/97/tII/s202/c/8" styleType="OLC">
<num style="-uslm-dtd:enum" value="8">(8) </num><heading style="-uslm-dtd:header">Coordination with section 4971.—</heading>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/113/97/tII/s202/c/8/A" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">(A) </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t26/s4971">26 U.S.C. 4971</ref><b>]</b> </editorialNote><content style="-uslm-dtd:text">Subsection (a) of section 4971 of such Code is amended by striking “<quotedText style="-uslm-dtd:quote">and</quotedText>” at the end of paragraph (1), by striking the period at the end of paragraph (2) and inserting “<quotedText style="-uslm-dtd:quote">, and</quotedText>”, and by adding at the end thereof the following new paragraph:<quotedContent style="-uslm-dtd:quoted-block">
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="3">“(3) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" identifier="/us/sComp/113/97/tII/s202/c/8/B" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">(B) </num><chapeau style="-uslm-dtd:text">Subsection (b) of section 4971 of such Code is amended—</chapeau>
<clause style="-uslm-dtd:clause" identifier="/us/sComp/113/97/tII/s202/c/8/B/i" styleType="OLC">
<num style="-uslm-dtd:enum" value="i">(i) </num><content style="-uslm-dtd:text">by striking “<quotedText style="-uslm-dtd:quote">or</quotedText>” at the end of paragraph (1), by adding “<quotedText style="-uslm-dtd:quote">or</quotedText>” at the end of paragraph (2), and by inserting immediately after paragraph (2) the following new paragraph:<quotedContent style="-uslm-dtd:quoted-block">
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="3">“(3) </num><content style="-uslm-dtd:text">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 style="-uslm-dtd:clause" identifier="/us/sComp/113/97/tII/s202/c/8/B/ii" styleType="OLC">
<num style="-uslm-dtd:enum" value="ii">(ii) </num><content style="-uslm-dtd:text">by striking “<quotedText style="-uslm-dtd:quote">minimum required contributions or accumulated funding deficiency</quotedText>” and inserting “<quotedText style="-uslm-dtd:quote">minimum required contribution, accumulated funding deficiency, or CSEC accumulated funding deficiency</quotedText>”.</content>
</clause>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/113/97/tII/s202/c/8/C" styleType="OLC">
<num style="-uslm-dtd:enum" value="C">(C) </num><chapeau style="-uslm-dtd:text">Subsection (c) of section 4971 of such Code is amended—</chapeau>
<clause style="-uslm-dtd:clause" identifier="/us/sComp/113/97/tII/s202/c/8/C/i" styleType="OLC">
<num style="-uslm-dtd:enum" value="i">(i) </num><content style="-uslm-dtd:text">by striking “<quotedText style="-uslm-dtd:quote">accumulated funding deficiency</quotedText>” each place it appears in paragraph (2) and inserting “<quotedText style="-uslm-dtd:quote">accumulated funding deficiency or CSEC accumulated funding deficiency</quotedText>”,</content>
</clause>
<clause style="-uslm-dtd:clause" identifier="/us/sComp/113/97/tII/s202/c/8/C/ii" styleType="OLC">
<num style="-uslm-dtd:enum" value="ii">(ii) </num><content style="-uslm-dtd:text">by striking “<quotedText style="-uslm-dtd:quote">accumulated funding deficiency or unpaid minimum required contribution</quotedText>” each place it appears in paragraph (3) and inserting “<quotedText style="-uslm-dtd:quote">accumulated funding deficiency, CSEC accumulated funding deficiency, or unpaid minimum required contribution</quotedText>”, and</content>
</clause>
<clause style="-uslm-dtd:clause" identifier="/us/sComp/113/97/tII/s202/c/8/C/iii" styleType="OLC">
<num style="-uslm-dtd:enum" value="iii">(iii) </num><content style="-uslm-dtd:text">by adding at the end the following new paragraph:<quotedContent style="-uslm-dtd:quoted-block">
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="5">“(5) </num><heading style="-uslm-dtd:header">CSEC accumulated funding deficiency. </heading><content style="-uslm-dtd:text">The term ‘<quotedText style="-uslm-dtd:quote">CSEC accumulated funding deficiency</quotedText>’ means the accumulated funding deficiency determined under section 433.”</content>
</paragraph></quotedContent>.</content>
</clause>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/113/97/tII/s202/c/8/D" styleType="OLC">
<num style="-uslm-dtd:enum" value="D">(D) </num><content style="-uslm-dtd:text">Paragraph (1) of section 4971(d) of such Code is amended by striking “<quotedText style="-uslm-dtd:quote">accumulated funding deficiency or unpaid minimum required contribution</quotedText>” and inserting “<quotedText style="-uslm-dtd:quote">accumulated funding deficiency, CSEC accumulated funding deficiency, or unpaid minimum required contribution</quotedText>”.</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/113/97/tII/s202/c/8/E" styleType="OLC">
<num style="-uslm-dtd:enum" value="E">(E) </num><chapeau style="-uslm-dtd:text">Subsection (f) of section 4971 of such Code is amended—</chapeau>
<clause style="-uslm-dtd:clause" identifier="/us/sComp/113/97/tII/s202/c/8/E/i" styleType="OLC">
<num style="-uslm-dtd:enum" value="i">(i) </num><content style="-uslm-dtd:text">by striking “<quotedText style="-uslm-dtd:quote">430(j)(4)</quotedText>” in paragraph (1) and inserting “<quotedText style="-uslm-dtd:quote">430(j)(4) or 433(f)</quotedText>”,</content>
</clause>
<clause style="-uslm-dtd:clause" identifier="/us/sComp/113/97/tII/s202/c/8/E/ii" styleType="OLC">
<num style="-uslm-dtd:enum" value="ii">(ii) </num><content style="-uslm-dtd:text">by striking “<quotedText style="-uslm-dtd:quote">430(j)</quotedText>” in paragraph (1)(B) and inserting “<quotedText style="-uslm-dtd:quote">430(j) or 433(f), whichever is applicable</quotedText>”, and</content>
</clause>
<clause style="-uslm-dtd:clause" identifier="/us/sComp/113/97/tII/s202/c/8/E/iii" styleType="OLC">
<num style="-uslm-dtd:enum" value="iii">(iii) </num><content style="-uslm-dtd:text">by striking “<quotedText style="-uslm-dtd:quote">412(m)(5)</quotedText>” in paragraph (3)(A) and inserting “<quotedText style="-uslm-dtd:quote">430(j) or 433(f), whichever is applicable</quotedText>”.</content>
</clause>
</subparagraph>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/113/97/tII/s202/c/9" styleType="OLC">
<num style="-uslm-dtd:enum" value="9">(9) </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t26/s4971">26 U.S.C. 4971</ref><b>]</b> </editorialNote><heading style="-uslm-dtd:header">Excise tax on failure to adopt funding restoration plan.—</heading><content style="-uslm-dtd:text">Section 4971 of such Code is amended by redesignating subsection (h) as subsection (i), and by inserting after subsection (g) the following new subsection:<quotedContent style="-uslm-dtd:quoted-block">
<subsection style="-uslm-dtd:subsection" styleType="OLC">
<num style="-uslm-dtd:enum" value="h">“(h) </num><heading style="-uslm-dtd:header">Failure of a CSEC Plan Sponsor To Adopt Funding Restoration Plan. </heading>
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="1">“(1) </num><heading style="-uslm-dtd:header">In general. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="2">“(2) </num><heading style="-uslm-dtd:header">Amount of tax. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="3">“(3) </num><heading style="-uslm-dtd:header">Waiver by secretary. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="4">“(4) </num><heading style="-uslm-dtd:header">Liability for tax. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:paragraph" identifier="/us/sComp/113/97/tII/s202/c/10" styleType="OLC">
<num style="-uslm-dtd:enum" value="10">(10) </num><heading style="-uslm-dtd:header">Reporting.—</heading>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/113/97/tII/s202/c/10/A" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">(A) </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t26/s6059">26 U.S.C. 6059</ref><b>]</b> </editorialNote><heading style="-uslm-dtd:header">In general.—</heading><content style="-uslm-dtd:text">Paragraph (2) of section 6059(b) of such Code is amended by striking “<quotedText style="-uslm-dtd:quote">430,</quotedText>” and inserting “<quotedText style="-uslm-dtd:quote">430, the accumulated funding deficiency under section 433,</quotedText>”.</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/113/97/tII/s202/c/10/B" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">(B) </num><heading style="-uslm-dtd:header">Assumptions.—</heading><content style="-uslm-dtd:text">Subparagraph (B) of section 6059(b)(3) of such Code is amended by striking “<quotedText style="-uslm-dtd:quote">430(h)(1) or 431(c)(3)</quotedText>” and inserting “<quotedText style="-uslm-dtd:quote">430(h)(1), 431(c)(3), or 433(c)(3)</quotedText>”.</content>
</subparagraph>
</paragraph>
</subsection>
</section>
<section style="-uslm-dtd:section" identifier="/us/sComp/113/97/tII/s203" styleType="OLC">
<num style="-uslm-dtd:enum" value="203">SEC. 203. </num><heading style="-uslm-dtd:header">ELECTION NOT TO BE TREATED AS A CSEC PLAN. </heading>
<subsection style="-uslm-dtd:subsection" identifier="/us/sComp/113/97/tII/s203/a" styleType="OLC">
<num style="-uslm-dtd:enum" value="a">(a) </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t26/s414">26 U.S.C. 414</ref><b>]</b> </editorialNote><heading style="-uslm-dtd:header">In General.—</heading><content style="-uslm-dtd:text">Section 414(y) of the Internal Revenue Code of 1986, as added by section 201, is amended by adding at the end the following new paragraph:<quotedContent style="-uslm-dtd:quoted-block">
<paragraph style="-uslm-dtd:paragraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="3">“(3) </num><heading style="-uslm-dtd:header">Election. </heading>
<subparagraph style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">“(A) </num><heading style="-uslm-dtd:header">In general. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:subparagraph" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">“(B) </num><heading style="-uslm-dtd:header">Special rule. </heading><content style="-uslm-dtd:text">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 style="-uslm-dtd:subsection" identifier="/us/sComp/113/97/tII/s203/b" styleType="OLC">
<num style="-uslm-dtd:enum" value="b">(b) </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t26/s414">26 U.S.C. 414 note</ref><b>]</b> </editorialNote><heading style="-uslm-dtd:header">Effective Date.—</heading><content style="-uslm-dtd:text">The amendment made by this section shall apply as of the date of enactment of this Act.</content>
</subsection>
</section>