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United States Code (Last Updated: May 24, 2014) |
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Title 26. INTERNAL REVENUE CODE |
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SubTitle A. Income Taxes |
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Chapter 1. NORMAL TAXES AND SURTAXES |
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SubChapter D. Deferred Compensation, Etc. |
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Part I. PENSION, PROFIT-SHARING, STOCK BONUS PLANS, ETC. |
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SubPart B. Special Rules |
§ 412. Minimum funding standards
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(a) Requirement to meet minimum funding standard (1) In general A plan to which this section applies shall satisfy the minimum funding standard applicable to the plan for any plan year.
(2) Minimum funding standard For purposes of paragraph (1), a plan shall be treated as satisfying the minimum funding standard for a plan year if— (A) in the case of a defined benefit plan which is not a multiemployer plan or a CSEC plan, the employer makes contributions to or under the plan for the plan year which, in the aggregate, are not less than the minimum required contribution determined under section 430 for the plan for the plan year, (B) in the case of a money purchase plan which is not a multiemployer plan, the employer makes contributions to or under the plan for the plan year which are required under the terms of the plan, (C) in the case of a multiemployer plan, the employers make contributions to or under the plan for any plan year which, in the aggregate, are sufficient to ensure that the plan does not have an accumulated funding deficiency under section 431 as of the end of the plan year, and (D) in the case of a CSEC plan, the employers make contributions to or under the plan for any plan year which, in the aggregate, are sufficient to ensure that the plan does not have an accumulated funding deficiency under section 433 as of the end of the plan year. (b) Liability for contributions (1) In general Except as provided in paragraph (2), the amount of any contribution required by this section (including any required installments under paragraphs (3) and (4) of section 430(j) or under section 433(f)) shall be paid by the employer responsible for making contributions to or under the plan.
(2) Joint and several liability where employer member of controlled group If the employer referred to in paragraph (1) is a member of a controlled group, each member of such group shall be jointly and severally liable for payment of such contributions.
(3) Multiemployer plans in critical status Paragraph (1) shall not apply in the case of a multiemployer plan for any plan year in which the plan is in critical status pursuant to section 432. This paragraph shall only apply if the plan sponsor adopts a rehabilitation plan in accordance with section 432(e) and complies with such rehabilitation plan (and any modifications of the plan).
(c) Variance from minimum funding standards (1) Waiver in case of business hardship (A) In general If— (i) an employer is (or in the case of a multiemployer plan or a CSEC plan, 10 percent or more of the number of employers contributing to or under the plan are) unable to satisfy the minimum funding standard for a plan year without temporary substantial business hardship (substantial business hardship in the case of a multiemployer plan), and (ii) application of the standard would be adverse to the interests of plan participants in the aggregate, the Secretary may, subject to subparagraph (C), waive the requirements of subsection (a) for such year with respect to all or any portion of the minimum funding standard. The Secretary shall not waive the minimum funding standard with respect to a plan for more than 3 of any 15 (5 of any 15 in the case of a multiemployer plan) consecutive plan years of chapter 1. (d) Miscellaneous rules (1) Change in method or year If the funding method or a plan year for a plan is changed, the change shall take effect only if approved by the Secretary.
(2) Certain retroactive plan amendments For purposes of this section, any amendment applying to a plan year which— (A) is adopted after the close of such plan year but no later than 2½ months after the close of the plan year (or, in the case of a multiemployer plan, no later than 2 years after the close of such plan year), (B) does not reduce the accrued benefit of any participant determined as of the beginning of the first plan year to which the amendment applies, and (C) does not reduce the accrued benefit of any participant determined as of the time of adoption except to the extent required by the circumstances, shall, at the election of the plan administrator, be deemed to have been made on the first day of such plan year. No amendment described in this paragraph which reduces the accrued benefits of any participant shall take effect unless the plan administrator files a notice with the Secretary notifying him of such amendment and the Secretary has approved such amendment, or within 90 days after the date on which such notice was filed, failed to disapprove such amendment. No amendment described in this subsection shall be approved by the Secretary unless the Secretary determines that such amendment is necessary because of a temporary substantial business hardship (as determined under subsection (c)(2)) or a substantial business hardship (as so determined) in the case of a multiemployer plan and that a waiver under subsection (c) (or, in the case of a multiemployer plan or a CSEC plan, any extension of the amortization period under section 431(d) or section 433(d)) is unavailable or inadequate. (3) Controlled group For purposes of this section, the term “controlled group” means any group treated as a single employer under subsection (b), (c), (m), or (o) of section 414.
(e) Plans to which section applies (1) In general Except as provided in paragraphs (2) and (4), this section applies to a plan if, for any plan year beginning on or after the effective date of this section for such plan under the Employee Retirement Income Security Act of 1974— (A) such plan included a trust which qualified (or was determined by the Secretary to have qualified) under section 401(a), or (B) such plan satisfied (or was determined by the Secretary to have satisfied) the requirements of section 403(a). (2) Exceptions This section shall not apply to— (A) any profit-sharing or stock bonus plan, (B) any insurance contract plan described in paragraph (3), (C) any governmental plan (within the meaning of section 414(d)), (D) any church plan (within the meaning of section 414(e)) with respect to which the election provided by section 410(d) has not been made, (E) any plan which has not, at any time after September 2, 1974 , provided for employer contributions, or(F) any plan established and maintained by a society, order, or association described in section 501(c)(8) or (9), if no part of the contributions to or under such plan are made by employers of participants in such plan. No plan described in subparagraph (C), (D), or (F) shall be treated as a qualified plan for purposes of section 401(a) unless such plan meets the requirements of section 401(a)(7) as in effect on September 1, 1974 .(3) Certain insurance contract plans A plan is described in this paragraph if— (A) the plan is funded exclusively by the purchase of individual insurance contracts, (B) such contracts provide for level annual premium payments to be paid extending not later than the retirement age for each individual participating in the plan, and commencing with the date the individual became a participant in the plan (or, in the case of an increase in benefits, commencing at the time such increase becomes effective), (C) benefits provided by the plan are equal to the benefits provided under each contract at normal retirement age under the plan and are guaranteed by an insurance carrier (licensed under the laws of a State to do business with the plan) to the extent premiums have been paid, (D) premiums payable for the plan year, and all prior plan years, under such contracts have been paid before lapse or there is reinstatement of the policy, (E) no rights under such contracts have been subject to a security interest at any time during the plan year, and (F) no policy loans are outstanding at any time during the plan year. A plan funded exclusively by the purchase of group insurance contracts which is determined under regulations prescribed by the Secretary to have the same characteristics as contracts described in the preceding sentence shall be treated as a plan described in this paragraph. (4) Certain terminated multiemployer plans This section applies with respect to a terminated multiemployer plan to which section 4021 of the Employee Retirement Income Security Act of 1974 applies until the last day of the plan year in which the plan terminates (within the meaning of section 4041A(a)(2) of such Act).
Amendments
For termination of subsection (b)(3) of this section by section 221(c) of Pub. L. 109–280, see Effective and Termination Dates of 2006 Amendment note below.
References In Text
The Employee Retirement Income Security Act of 1974, referred to in subsecs. (c)(4)(A), (B)(ii)(II), (6)(A), and (e)(1), (4), is Pub. L. 93–406,
The effective date of this section, referred to in subsec. (e)(1), probably means the effective date of Pub. L. 109–280, § 111(a), which amended this section. See Effective and Termination Dates of 2006 Amendment note below.
Amendments
2014—Subsec. (a)(2)(A). Pub. L. 113–97, § 202(c)(2)(A), substituted “multiemployer plan or a CSEC plan” for “multiemployer plan”.
Subsec. (a)(2)(D). Pub. L. 113–97, § 202(c)(1), added subpar. (D).
Subsec. (b)(1). Pub. L. 113–97, § 202(c)(2)(B), substituted “430(j) or under section 433(f)” for “430(j)”.
Subsec. (c)(1)(A)(i). Pub. L. 113–97, § 202(c)(2)(A), substituted “multiemployer plan or a CSEC plan, 10 percent” for “multiemployer plan, 10 percent”.
Subsec. (c)(1)(B)(i). Pub. L. 113–97, § 202(c)(2)(A), substituted “multiemployer plan or a CSEC plan” for “multiemployer plan”.
Subsec. (c)(1)(B)(iii). Pub. L. 113–97, § 202(c)(2)(C), added cl. (iii).
Subsec. (c)(4)(A)(i). Pub. L. 113–97, § 202(c)(2)(D), substituted “under paragraph (1) or for granting an extension under section 433(d)” for “under paragraph (1)”.
Subsec. (c)(4)(B). Pub. L. 113–97, § 202(c)(2)(E), substituted “waiver under this subsection or an extension under 433(d)” for “waiver under this subsection” in introductory provisions.
Subsec. (c)(4)(B)(i)(I). Pub. L. 113–97, § 202(c)(2)(F), substituted “waiver, modification, or extension” for “waiver or modification”.
Subsec. (c)(4)(C). Pub. L. 113–97, § 202(c)(2)(G), substituted “waivers or extensions” for “waivers” in heading.
Subsec. (c)(4)(C)(i)(I). Pub. L. 113–97, § 202(c)(2)(I), substituted “or the accumulated funding deficiency under section 433, whichever is applicable,” for “and” at end.
Subsec. (c)(4)(C)(i)(II). Pub. L. 113–97, § 202(c)(2)(J), substituted “430(e)(2) or 433(b)(2)(C), whichever is applicable, and” for “430(e)(2),”.
Subsec. (c)(4)(C)(i)(III). Pub. L. 113–97, § 202(c)(2)(K), added subcl. (III).
Subsec. (c)(4)(C)(ii). Pub. L. 113–97, § 202(c)(2)(L), substituted “for waivers or extensions with respect to” for “for waivers of”.
Pub. L. 113–97, § 202(c)(2)(G), substituted “waivers or extensions” for “waivers” in heading.
Subsec. (c)(7)(A). Pub. L. 113–97, § 202(c)(2)(H), substituted “section 431(d) or section 433(d)” for “section 431(d)”.
Subsec. (d)(2). Pub. L. 113–97, § 202(c)(2)(H), substituted “section 431(d) or section 433(d)” for “section 431(d)” in concluding provisions.
Pub. L. 113–97, § 202(c)(2)(A), substituted “multiemployer plan or a CSEC plan, any extension” for “multiemployer plan, any extension” in concluding provisions.
2008—Subsec. (b)(3). Pub. L. 110–458, § 102(b)(2)(H), substituted “the plan sponsor adopts” for “the plan adopts”.
Subsec. (c)(1)(A)(i). Pub. L. 110–458, § 101(a)(2)(A), substituted “the plan are” for “the plan is”.
Subsec. (c)(7)(A). Pub. L. 110–458, § 101(a)(2)(B), inserted “which reduces the accrued benefit of any participant” after “subsection (d)(2)”.
Subsec. (d)(1). Pub. L. 110–458, § 101(a)(2)(C), struck out “, the valuation date,” after “If the funding method”.
2006—Pub. L. 109–280, § 111(a), reenacted heading without change and amended text generally, substituting provisions relating to minimum funding standard requirement, liability for contributions, variance from minimum funding standards, miscellaneous rules, and plans to which section applies, consisting of subsecs. (a) to (e), for provisions relating to general rule for satisfaction of minimum funding standard, funding standard account, special rules, variance from minimum funding standard, extension of amortization periods, requirements relating to waivers and extensions, alternative minimum funding standard, exceptions, certain insurance contract plans, certain terminated multiemployer plans, financial assistance, additional funding requirements for plans which are not multiemployer plans, quarterly contributions requirement, and imposition of lien where failure to make required contributions, consisting of subsecs. (a) to (n).
Subsec. (b)(3). Pub. L. 109–280, §§ 212(c), 221(c), temporarily added par. (3). See Effective and Termination Dates of 2006 Amendment note below.
Subsec. (b)(5)(B)(ii)(II). Pub. L. 109–280, § 301(b)(1), substituted “, 2005, 2006, and 2007” for “and 2005” in heading and “2008” for “2006” in text.
Subsec. (l)(7)(C)(i)(IV). Pub. L. 109–280, § 301(b)(2), substituted “, 2005, 2006, and 2007” for “and 2005” in heading and “, 2005, 2006, or 2007” for “or 2005” in text.
2005—Subsec. (m)(4)(B)(i). Pub. L. 109–135 substituted “subsection (d)” for “subsection (c)”.
2004—Subsec. (b)(5)(B)(ii)(I). Pub. L. 108–218, § 101(b)(1)(C), inserted “or (III)” after “subclause (II)”.
Subsec. (b)(5)(B)(ii)(II), (III). Pub. L. 108–218, § 101(b)(1)(A), (B), added subcl. (II), redesignated former subcl. (II) as (III), and, in subcl. (III), inserted “or (II)” after “permissible under subclause (I)” and substituted “such subclause” for “subclause (I)” before period at end.
Subsec. (b)(7)(F). Pub. L. 108–218, § 104(b), added subpar. (F).
Subsec. (l)(7)(C)(i)(IV). Pub. L. 108–218, § 101(b)(2), added subcl. (IV).
Subsec. (l)(12). Pub. L. 108–218, § 102(b), added par. (12).
Subsec. (m)(7). Pub. L. 108–218, § 101(b)(3), amended heading and text of par. (7) generally, substituting provisions relating to special rule for 2002 for provisions relating to special rules for 2002 and 2004.
2002—Subsec. (c)(9)(B)(ii). Pub. L. 107–147, § 411(v)(1)(A), substituted “100 percent” for “125 percent”.
Subsec. (c)(9)(B)(iv). Pub. L. 107–147, § 411(v)(1)(B), added cl. (iv).
Subsec. (l)(7)(C)(i)(III). Pub. L. 107–147, § 405(a)(1), added subcl. (III).
Subsec. (m)(7). Pub. L. 107–147, § 405(a)(2), added par. (7).
2001—Subsec. (c)(7)(A)(i)(I). Pub. L. 107–16, § 651(a)(1), substituted “in the case of plan years beginning before
Subsec. (c)(7)(F). Pub. L. 107–16, § 651(a)(2), reenacted heading and introductory provisions without change and amended table generally, substituting present provisions for provisions which had set out applicable percentage of 155 in the case of any plan year beginning in 1999 or 2000, 160 in the case of any plan year beginning in 2001 or 2002, 165 in the case of any plan year beginning in 2003 or 2004, and 170 in the case of any plan year beginning in 2005 and succeeding years.
Subsec. (c)(9). Pub. L. 107–16, § 661(a), reenacted heading without change and amended text of par. (9) generally. Prior to amendment, text read as follows: “For purposes of this section, a determination of experience gains and losses and a valuation of the plan’s liability shall be made not less frequently than once every year, except that such determination shall be made more frequently to the extent required in particular cases under regulations prescribed by the Secretary.”
1997—Subsec. (b)(2)(E). Pub. L. 105–34, § 1521(c)(1), added subpar. (E).
Subsec. (c)(7)(A)(i)(I). Pub. L. 105–34, § 1521(a)(A), substituted “the applicable percentage” for “150 percent”.
Subsec. (c)(7)(D). Pub. L. 105–34, § 1521(c)(3)(A), inserted “and” at end of cl. (i), substituted a period for “, and” at end of cl. (ii), and struck out cl. (iii) which read as follows: “for the treatment under this section of contributions which would be required to be made under the plan but for the provisions of subparagraph (A)(i)(I).”
Subsec. (c)(7)(F). Pub. L. 105–34, § 1521(a)(B), added subpar. (F).
Subsec. (m)(5)(E)(ii)(II). Pub. L. 105–34, § 1604(b)(2)(A), substituted “subclause (I)” for “clause (i)”.
1994—Subsec. (c)(5). Pub. L. 103–465, § 752(a), designated existing provisions as subpar. (A), inserted subpar. heading, and added subpar. (B).
Subsec. (c)(7)(A)(i)(I). Pub. L. 103–465, § 751(a)(10)(A), inserted “(including the expected increase in current liability due to benefits accruing during the plan year)” after “current liability”.
Subsec. (c)(7)(B). Pub. L. 103–465, § 751(a)(10)(C), reenacted subpar. (B) heading without change and amended text generally. Prior to amendment, text read as follows: “For purposes of subparagraphs (A) and (D), the term ‘current liability’ has the meaning given such term by subsection (l)(7) (without regard to subparagraph (D) thereof).”
Subsec. (c)(7)(E). Pub. L. 103–465, § 751(a)(10)(B), added subpar. (E).
Subsec. (c)(12). Pub. L. 103–465, § 753(a), added par. (12).
Subsec. (l)(1). Pub. L. 103–465, § 751(a)(1)(A), (2)(B), in introductory provisions, substituted “to which this subsection applies under paragraph (9)” for “which has an unfunded current liability”, and amended concluding provisions generally. Prior to amendment, concluding provisions read as follows: “Such increase shall not exceed the amount necessary to increase the funded current liability percentage to 100 percent.”
Subsec. (l)(1)(A)(ii). Pub. L. 103–465, § 751(a)(2)(A), amended cl. (ii) generally. Prior to amendment, cl. (ii) read as follows: “the sum of the charges for such plan year under subparagraphs (B) (other than clauses (iv) and (v) thereof), (C), and (D) of subsection (b)(2), reduced by the sum of the credits for such plan year under subparagraph (B)(i) of subsection (b)(3), plus”.
Subsec. (l)(2)(C). Pub. L. 103–465, § 751(a)(3), added subpar. (C).
Subsec. (l)(2)(D). Pub. L. 103–465, § 751(a)(7)(B)(i), added subpar. (D).
Subsec. (l)(3)(D), (E). Pub. L. 103–465, § 751(a)(4)(A), added subpars. (D) and (E).
Subsec. (l)(4)(B)(i). Pub. L. 103–465, § 751(a)(4)(B), (7)(B)(iii), inserted “, the unamortized portion of the additional unfunded old liability, the unamortized portion of each unfunded mortality increase,” after “old liability”.
Subsec. (l)(4)(C). Pub. L. 103–465, § 751(a)(5), substituted “.40” for “.25” in cl. (i) and “60” for “35” in cl. (ii).
Subsec. (l)(5)(A). Pub. L. 103–465, § 751(a)(6)(A)(i), substituted “greatest of” for “greater of” in introductory provisions.
Subsec. (l)(5)(A)(iii). Pub. L. 103–465, § 751(a)(6)(A)(ii)–(iv), added cl. (iii).
Subsec. (l)(5)(E). Pub. L. 103–465, § 751(a)(6)(B), added subpar. (E).
Subsec. (l)(7)(C). Pub. L. 103–465, § 751(a)(7)(A), amended subpar. (C) generally. Prior to amendment, subpar. (C) read as follows: “(C) Interest rates used.—The rate of interest used to determine current liability shall be the rate of interest used under subsection (b)(5).”
Subsec. (l)(9). Pub. L. 103–465, § 751(a)(1)(B), added par. (9).
Subsec. (l)(10). Pub. L. 103–465, § 751(a)(7)(B)(ii), added par. (10).
Subsec. (l)(11). Pub. L. 103–465, § 751(a)(8), added par. (11).
Subsec. (m)(1). Pub. L. 103–465, § 754(a), in introductory provisions, inserted “which has a funded current liability percentage (as defined in subsection (l)(8)) for the preceding plan year of less than 100 percent” before “fails” and substituted “the plan year” for “any plan year”.
Subsec. (m)(4)(D)(ii). Pub. L. 103–465, § 751(a)(6)(C)(i), substituted “greatest of” for “greater of” in introductory provisions.
Subsec. (m)(4)(D)(ii)(III). Pub. L. 103–465, § 751(a)(6)(C)(ii)–(iv), added subcl. (III).
Subsec. (m)(5), (6). Pub. L. 103–465, § 751(a)(9)(A), added par. (5) and redesignated former par. (5) as (6).
Subsec. (n)(2). Pub. L. 103–465, § 768(a)(1), inserted at end “This subsection shall not apply to any plan to which section 4021 of the Employee Retirement Income Security Act of 1974 does not apply (as such section is in effect on the date of the enactment of the Retirement Protection Act of 1994).”
Subsec. (n)(3). Pub. L. 103–465, § 768(a)(2), reenacted par. (3) heading without change and amended text generally. Prior to amendment, text read as follows: “For purposes of paragraph (1), the amount of the lien shall be equal to the lesser of—
“(A) the amount by which the unpaid balances described in paragraph (1)(B) (including interest) exceed $1,000,000, or
“(B) the aggregate unpaid balance of required installments and other payments required under this section (including interest)—
“(i) for plan years beginning after 1987, and
“(ii) for which payment has not been made before the due date.”
Subsec. (n)(4)(B). Pub. L. 103–465, § 768(a)(3), struck out “60th day following the” before “due date”.
1989—Subsec. (b)(5)(B)(iii). Pub. L. 101–239, § 7881(d)(1)(A), struck out “for purposes of this section and for purposes of determining current liability,” before “the interest rate” in introductory provisions.
Subsec. (c)(9). Pub. L. 101–239, § 7881(a)(6)(A), substituted “Annual” for “3-year” in heading and “every year” for “every 3 years” in text.
Subsec. (c)(10)(A). Pub. L. 101–239, § 7881(b)(1)(A), substituted “Defined benefit plans” for “Plans” in heading and “defined benefit plan other” for “plan other” in introductory provisions.
Subsec. (c)(10)(B). Pub. L. 101–239, § 7881(b)(2)(A), substituted “Other” for “Multiemployer” in heading and “plan not described in subparagraph (A)” for “multiemployer plan” in text.
Subsec. (d)(1)(A)(ii). Pub. L. 101–239, § 7881(b)(6)(A)(ii), substituted “costs (including adjustments under subsection (b)(5)(B))” for “costs”.
Subsec. (f)(4)(A). Pub. L. 101–239, § 7881(c)(1), substituted “for benefit liabilities” for “the benefit liabilities”.
Subsec. (l)(3)(C)(ii)(II). Pub. L. 101–239, § 7881(a)(1)(A), substituted “reducing (but not below zero)” for “reducing”.
Subsec. (l)(4)(B)(i). Pub. L. 101–239, § 7881(a)(2)(A), substituted “liability and the unamortized portion of the unfunded existing benefit increase liability” for “liability”.
Subsec. (l)(5)(C). Pub. L. 101–239, § 7881(a)(3)(A), substituted “the first plan year beginning after
Subsec. (l)(7)(D)(iii)(III). Pub. L. 101–239, § 7881(a)(4)(A)(i), added subcl. (III).
Subsec. (l)(7)(D)(iv). Pub. L. 101–239, § 7881(a)(4)(A)(ii), added cl. (iv).
Subsec. (l)(8)(A)(ii). Pub. L. 101–239, § 7881(a)(5)(A)(i), struck out “reduced by any credit balance in the funding standard account” after “under subsection (c)(2)”.
Subsec. (l)(8)(E). Pub. L. 101–239, § 7881(a)(5)(A)(ii), added subpar. (E).
Subsec. (m)(1). Pub. L. 101–239, § 7881(b)(3)(A), substituted “defined benefit plan (other than” for “plan (other than” in introductory provisions.
Subsec. (m)(1)(B). Pub. L. 101–239, § 7881(b)(6)(A)(i), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “the rate under subsection (b)(5).”
Subsec. (m)(4)(D). Pub. L. 101–239, § 7881(b)(4)(A), amended subpar. (D) generally. Prior to amendment, subpar. (D) read as follows: “In the case of a plan with any unpredictable contingent event benefit liabilities—
“(i) such liabilities shall not be taken into account in computing the required annual payment under subparagraph (B), and
“(ii) each required installment shall be increased by the greater of—
“(I) the amount of benefits described in subsection (l)(5)(A)(i) paid during the 3-month period preceding the month in which the due date for such installment occurs, or
“(II) 25 percent of the amount determined under subsection (l)(5)(A)(ii) for the plan year.”
1988—Subsec. (l)(3)(C)(i), (iii). Pub. L. 100–647, § 2005(a)(2)(A), (d)(1), amended cl. (i) identically, substituting “October 29” for “October 17” and amended cl. (iii) identically, substituting “October 28” for “October 16”.
1987—Subsec. (b)(2). Pub. L. 100–203, § 9303(a)(2), inserted at end “For additional requirements in the case of plans other than multiemployer plans, see subsection (l).”
Subsec. (b)(2)(B)(iv). Pub. L. 100–203, § 9307(a)(1)(A), substituted “5 plan years (15 plan years in the case of a multiemployer plan)” for “15 plan years”.
Subsec. (b)(2)(B)(v). Pub. L. 100–203, § 9307(a)(1)(B), substituted “10 plan years (30 plan years in the case of a multiemployer plan)” for “30 plan years”.
Subsec. (b)(2)(C), (3)(B)(ii). Pub. L. 100–203, § 9307(a)(1)(A), substituted “5 plan years (15 plan years in the case of a multiemployer plan)” for “15 plan years”.
Subsec. (b)(3)(B)(iii). Pub. L. 100–203, § 9307(a)(1)(B), substituted “10 plan years (30 plan years in the case of a multiemployer plan)” for “30 plan years”.
Subsec. (b)(5). Pub. L. 100–203, § 9307(e)(1), amended par. (5) generally. Prior to amendment, par. (5) read as follows: “The funding standard account (and items therein) shall be charged or credited (as determined under regulations prescribed by the Secretary) with interest at the appropriate rate consistent with the rate or rates of interest used under the plan to determine costs.”
Subsec. (c)(2)(B). Pub. L. 100–203, § 9303(d)(1), inserted at end “In the case of a plan other than a multiemployer plan, this subparagraph shall not apply, but the Secretary may by regulations provide that the value of any dedicated bond portfolio of such plan shall be determined by using the interest rate under subsection (b)(5).”
Subsec. (c)(3). Pub. L. 100–203, § 9307(b)(1), amended par. (3) generally. Prior to amendment, par. (3) read as follows: “For purposes of this section, all costs, liabilities, rates of interest, and other factors under the plan shall be determined on the basis of actuarial assumptions and methods which, in the aggregate, are reasonable (taking into account the experience of the plan and reasonable expectations) and which, in combination, offer the actuary’s best estimate of anticipated experience under the plan.”
Subsec. (c)(7). Pub. L. 100–203, § 9301(a), substituted “Full-funding” for “Full funding” in heading and amended text generally. Prior to amendment, text read as follows: “For purposes of paragraph (6), the term full funding limitation means the excess (if any) of—
“(A) the accrued liability (including normal cost) under the plan (determined under the entry age normal funding method if such accrued liability cannot be directly calculated under the funding method used for the plan), over
“(B) the lesser of the fair market value of the plan’s assets or the value of such assets determined under paragraph (2).”
Subsec. (c)(10). Pub. L. 100–203, § 9304(a)(1), amended par. (10) generally. Prior to amendment, par. (10) read as follows: “For purposes of this section, any contributions for a plan year made by an employer after the last day of such plan year, but not later than two and one-half months after such day, shall be deemed to have been made on such last day. For purposes of this paragraph, such two and one-half month period may be extended for not more than six months under regulations prescribed by the Secretary.”
Subsec. (c)(11). Pub. L. 100–203, § 9305(b)(1), added par. (11).
Subsec. (d)(1). Pub. L. 100–203, § 9306(a)(1)(B), struck out “substantial” after “in case of” in heading, and substituted “temporary substantial business hardship (substantial business hardship in the case of a multiemployer plan)” for “substantial business hardship” in text.
Pub. L. 100–203, § 9306(b)(1), substituted “more than 3 of any 15 (5 of any 15 in the case of a multiemployer plan)” for “more than 5 of any 15”.
Pub. L. 100–203, § 9306(c)(1)(A), substituted “The interest rate used for purposes of computing the amortization charge described in subsection (b)(2)(C) for any plan year shall be—” and subpars. (A) and (B) for “The interest rate used for purposes of computing the amortization charge described in section 412(b)(2)(C) for a variance granted under this subsection shall be the rate determined under section 6621(b).”
Subsec. (d)(2). Pub. L. 100–203, § 9306(a)(1)(B), struck out “substantial” after “Determination of” in heading, and substituted “temporary substantial business hardship (substantial business hardship in the case of a multiemployer plan)” for “substantial business hardship” in introductory provisions.
Subsec. (d)(4). Pub. L. 100–203, § 9306(a)(1)(A), added par. (4).
Subsec. (d)(5). Pub. L. 100–203, § 9306(a)(1)(C), added par. (5).
Subsec. (e). Pub. L. 100–203, § 9306(c)(1)(B), substituted last two sentences for “The interest rate applicable under any arrangement entered into by the Secretary in connection with an extension granted under this subsection shall be the rate determined under section 6621(b).”
Subsec. (f)(3)(C)(i). Pub. L. 100–203, § 9306(e)(1), substituted “$1,000,000” for “$2,000,000” at end.
Subsec. (f)(4)(A). Pub. L. 100–203, § 9306(d)(1), substituted “plan, and each participant, beneficiary, and alternate payee (within the meaning of section 414(p)(8)). Such notice shall include a description of the extent to which the plan is funded for benefits which are guaranteed under title IV of such Act and the benefit liabilities.” for “plan.”
Subsec. (l). Pub. L. 100–203, § 9303(a)(1), added subsec. (l).
Subsec. (m). Pub. L. 100–203, § 9304(b)(1), added subsec. (m).
Subsec. (n). Pub. L. 100–203, § 9304(e)(1), added subsec. (n).
1986—Subsec. (d)(1). Pub. L. 99–272, § 11015(b)(2)(A), inserted provision that the interest rate used for purposes of computing the amortization charge described in section 412(b)(2)(C) for a variance granted under this subsection be the rate determined under section 6621(b).
Subsec. (e). Pub. L. 99–272, § 11015(b)(2)(B), inserted provision that the interest rate applicable under any arrangement entered into by the Secretary in connection with an extension granted under this subsection be the rate determined under section 6621(b).
Subsec. (f). Pub. L. 99–272, § 11015(a)(2), substituted in heading “Requirements relating to waivers and extensions” for “Benefits may not be increased during waiver or extension period” and in par. (1) heading “Benefits may not be increased during waiver or extension period” for “In general”, and added par. (3).
Pub. L. 99–272, § 11016(c)(4), added par. (4).
1984—Subsec. (a)(2). Pub. L. 98–369 struck out “or 405(a)” after “section 403(a)”.
1980—Subsec. (a). Pub. L. 96–364, § 208(c), inserted provisions relating to plan years where multiemployer plan is in reorganization.
Subsec. (b). Pub. L. 96–364, § 203(1), (2), struck out in pars. (2)(B)(ii), (iii), and (3)(B)(i) provisions respecting applicability of multiemployer plans with 40 plan years and in pars. (2)(B)(iv) and (3)(B)(ii) provisions respecting applicability of multiemployer plans with 20 year plans and added pars. (6) and (7).
Subsecs. (j), (k). Pub. L. 96–364, § 203(3), added subsecs. (j) and (k).
1976—Subsecs. (a) to (d). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.
Subsec. (h). Pub. L. 94–455, § 1901(a)(63), substituted reference to
Subsec. (i). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.
Effective Date Of Amendment
Amendment by Pub. L. 113–97 applicable to years beginning after
Amendment by Pub. L. 110–458 effective as if included in the provisions of Pub. L. 109–280 to which the amendment relates, except as otherwise provided, see section 112 of Pub. L. 110–458, set out as a note under section 72 of this title.
Pub. L. 109–280, title I, § 111(b),
Pub. L. 109–280, title II, § 212(e),
Pub. L. 109–280, title II, § 221(c),
Amendment by section 101(b)(1)–(3) of Pub. L. 108–218 applicable, except as otherwise provided, to plan years beginning after
Amendment by section 411(v)(1) of Pub. L. 107–147 effective as if included in the provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001, Pub. L. 107–16, to which such amendment relates, see section 411(x) of Pub. L. 107–147, set out as a note under section 25B of this title.
Pub. L. 107–16, title VI, § 651(c),
Pub. L. 107–16, title VI, § 661(c),
Pub. L. 105–34, title XV, § 1521(d)(1),
Pub. L. 105–34, title XVI, § 1604(b)(4),
Amendment by section 751(a)(1)–(9)(A), (10) of Pub. L. 103–465 applicable to plan years beginning after
Pub. L. 103–465, title VII, § 752(b),
Pub. L. 103–465, title VII, § 753(b),
Pub. L. 103–465, title VII, § 754(b),
Pub. L. 103–465, title VII, § 768(c),
Amendment by Pub. L. 101–239 effective, except as otherwise provided, as if included in the provision of the Pension Protection Act, Pub. L. 100–203, §§ 9302–9346, to which such amendment relates, see section 7882 of Pub. L. 101–239, set out as a note under section 401 of this title.
Amendment by Pub. L. 100–647 effective as if included in the amendments made by the provisions of the Omnibus Budget Reconciliation Act of 1987, Pub. L. 100–203, to which it relates, see section 2005(e) of Pub. L. 100–647, as amended, set out as a note under section 404 of this title.
Pub. L. 100–203, title IX, § 9301(c)(1), (2),
Pub. L. 100–203, title IX, § 9303(e),
Pub. L. 100–203, title IX, § 9304(a)(3),
Pub. L. 100–203, title IX, § 9304(b)(3),
Pub. L. 100–203, title IX, § 9304(e)(3),
Pub. L. 100–203, title IX, § 9305(d),
Pub. L. 100–203, title IX, § 9306(f),
Amendment by section 9307(a)(1), (b)(1), (e)(1) of Pub. L. 100–203 applicable to years beginning after
Pub. L. 99–272, title XI, § 11015(a)(3),
Amendment by sections 11015(b)(2) and 11016(c)(4) of Pub. L. 99–272 effective
Amendment by Pub. L. 98–369 applicable to obligations issued after
Amendment by Pub. L. 96–364 effective
Amendment by section 1901(a)(63) of Pub. L. 94–455 effective for taxable years beginning after
Effective Date
Section applicable, except as otherwise provided in section 1017(c) through (i) of Pub. L. 93–406, for plan years beginning after
Miscellaneous
Pub. L. 103–465, title VII, § 769,
[Pub. L. 109–280, title I, § 115(d)(2),
[Pub. L. 109–280, title I, § 115(e)(2),
[Pub. L. 108–218, title II, § 201(b),
[Pub. L. 105–34, title XV, § 1508(b),
Pub. L. 100–203, title IX, § 9303(c),
For special rules on applicability of amendments by subtitles A (§§ 101–108) and B (§§ 111–116) of title I of Pub. L. 109–280 to certain eligible cooperative plans, PBGC settlement plans, and eligible government contractor plans, see sections 104, 105, and 106 of Pub. L. 109–280, set out as notes under section 401 of this title.
Pub. L. 109–280, title II, § 206,
For special rules on applicability of this section to certain plans maintained by commercial airlines, see section 402 of Pub. L. 109–280, set out as a note under section 430 of this title.
Pub. L. 108–218, title I, § 102(c),
Pub. L. 105–34, title XV, § 1521(d)(2),
Pub. L. 93–406, title II, § 1013(d),