Page 407 TITLE 29—LABOR § 1082

(1) the plan is funded exclusively by the purchase of individual insurance contracts,

(2) such contracts provide for level annual

premium payments to be paid extending not

later than the retirement age for each individual participating in the plan, and commencing

with the date the individual became a participant in the plan (or, in the case of an increase

in benefits, commencing at the time such increase became effective),

(3) benefits provided by the plan are equal to

the benefits provided under each contract at

normal retirement age under the plan and are

guaranteed by an insurance carrier (licensed

under the laws of a State to do business with

the plan) to the extent premiums have been

paid,

(4) premiums payable for the plan year, and

all prior plan years under such contracts have

been paid before lapse or there is reinstatement of the policy,

(5) no rights under such contracts have been

subject to a security interest at any time during the plan year, and

(6) no policy loans are outstanding at any

time during the plan year.

A plan funded exclusively by the purchase of

group insurance contracts which is determined

under regulations prescribed by the Secretary of

the Treasury to have the same characteristics

as contracts described in the preceding sentence

shall be treated as a plan described in this subsection.

(c) Applicability of this part to terminated multiemployer plans

This part applies, with respect to a terminated

multiemployer plan to which section 1321 of this

title applies, until the last day of the plan year

in which the plan terminates, within the meaning of section 1341a(a)(2) of this title.

(d) Financial assistance from Pension Benefit

Guaranty Corporation

Any amount of any financial assistance from

the Pension Benefit Guaranty Corporation to

any plan, and any repayment of such amount,

shall be taken into account under this section in

such manner as determined by the Secretary of

the Treasury.

(Pub. L. 93–406, title I, §301, Sept. 2, 1974, 88 Stat.

868; Pub. L. 96–364, title III, §304(a), title IV,

§411(b), Sept. 26, 1980, 94 Stat. 1293, 1308; Pub. L.

101–239, title VII, §§7891(a)(1), 7894(d)(1)(A),

(4)(A), Dec. 19, 1989, 103 Stat. 2445, 2449.)

REFERENCES IN TEXT

Section 409 of title 26, referred to in subsec. (a)(7),

means section 409 of Title 26, Internal Revenue Code,

prior to its repeal by Pub. L. 98–369, div. A, title IV,

§491(b), July 18, 1984, 98 Stat. 848, applicable to obligations issued after Dec. 31, 1983.

This chapter, referred to in subsec. (a)(10), was in the

original ‘‘this Act’’, meaning Pub. L. 93–406, known as

the Employee Retirement Income Security Act of 1974.

Titles I, III, and IV of such Act are classified principally to this chapter. For complete classification of

this Act to the Code, see Short Title note set out under

section 1001 of this title and Tables.

AMENDMENTS

1989—Subsec. (a)(4)(A), (6). Pub. L. 101–239, §7891(a)(1),

substituted ‘‘Internal Revenue Code of 1986’’ for ‘‘Internal Revenue Code of 1954’’, which for purposes of codification was translated as ‘‘title 26’’ thus requiring no

change in text.

Subsec. (a)(7). Pub. L. 101–239, §7894(d)(4)(A), substituted ‘‘section 409 of title 26 (as effective for obligations issued before January 1, 1984)’’ for ‘‘section 409 of

title 26’’.

Subsec. (a)(8). Pub. L. 101–239, §7894(d)(1)(A)(i), struck

out ‘‘or’’ after semicolon at end.

Subsec. (a)(9). Pub. L. 101–239, §7894(d)(1)(A)(ii), substituted ‘‘; or’’ for period at end.

Subsec. (a)(10). Pub. L. 101–239, §7894(d)(1)(A)(iii), substituted ‘‘any’’ for ‘‘Any’’.

1980—Subsec. (a)(10). Pub. L. 96–364, §411(b), added

par. (10).

Subsecs. (c), (d). Pub. L. 96–364, §304(a), added subsecs.

(c) and (d).

EFFECTIVE DATE OF 1989 AMENDMENT

Amendment by section 7891(a)(1) of Pub. L. 101–239 effective, except as otherwise provided, as if included in

the provision of the Tax Reform Act of 1986, Pub. L.

99–514, to which such amendment relates, see section

7891(f) of Pub. L. 101–239, set out as a note under section

1002 of this title.

Section 7894(d)(1)(B) of Pub. L. 101–239 provided that:

‘‘The amendments made by subparagraph (A) [amending this section] shall take effect as if included in section 411 of the Multiemployer Pension Plan Amendments Act of 1980 [Pub. L. 96–364].’’

Section 7894(d)(4)(B) of Pub. L. 101–239 provided that:

‘‘The amendment made by subparagraph (A) [amending

this section] shall take effect as if originally included

in section 491(b) of Public Law 98–369.’’

EFFECTIVE DATE OF 1980 AMENDMENT

Amendment by Pub. L. 96–364 effective Sept. 26, 1980,

except as specifically provided, see section 1461(e) of

this title.

REGULATIONS

Secretary authorized, effective Sept. 2, 1974, to promulgate regulations wherever provisions of this subchapter call for the promulgation of regulations, see

section 1031 of this title.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1003, 1023, 1054

of this title.

§ 1082. Minimum funding standards

(a) Avoidance of accumulated funding deficiency

(1) Every employee pension benefit plan subject to this part shall satisfy the minimum funding standard (or the alternative minimum funding standard under section 1085 of this title) for

any plan year to which this part applies. A plan

to which this part applies shall have satisfied

the minimum funding standard for such plan for

a plan year if as of the end of such plan year the

plan does not have an accumulated funding deficiency.

(2) For the purposes of this part, the term ‘‘accumulated funding deficiency’’ means for any

plan the excess of the total charges to the funding standard account for all plan years (beginning with the first plan year to which this part

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.

(3) In any plan year in which a multiemployer

plan is in reorganization, the accumulated funding deficiency of the plan shall be determined

under section 1423 of this title.
§ 1082 TITLE 29—LABOR Page 408

1So in original.

(b) Funding standard account

(1) Each plan to which this part applies shall

establish and maintain a funding standard account. Such account shall be credited and

charged solely as provided in this section.

(2) For a plan year, the funding standard account shall be charged with the sum of—

(A) the normal cost of the plan for the plan

year,

(B) the amounts necessary to amortize in

equal annual installments (until fully amortized)—

(i) in the case of a plan in existence on

January 1, 1974, the unfunded past service liability under the plan on the first day of the

first plan year to which this part applies,

over a period of 40 plan years,

(ii) in the case of a plan which comes into

existence after January 1, 1974, the unfunded

past service liability under the plan on the

first day of the first plan year to which this

part applies, over a period of 30 plan years,

(iii) separately, with respect to each plan

year, the net increase (if any) in unfunded

past service liability under the plan arising

from plan amendments adopted in such year,

over a period of 30 plan years,

(iv) separately, with respect to each plan

year, the net experience loss (if any) under

the plan, over a period of 5 plan years (15

plan years in the case of a multiemployer

plan), and

(v) separately, with respect to each plan

year, the net loss (if any) resulting from

changes in actuarial assumptions used under

the plan, over a period of 10 plan years (30

plan years in the case of a multiemployer

plan),

(C) the amount necessary to amortize each

waived funding deficiency (within the meaning

of section 1083(c) of this title) for each prior

plan year in equal annual installments (until

fully amortized) over a period of 5 plan years

(15 plan years in the case of a multiemployer

plan),

(D) the amount necessary to amortize in

equal annual installments (until fully amortized) over a period of 5 plan years any amount

credited to the funding standard account

under paragraph (3)(D), and

(E) the amount necessary to amortize in

equal annual installments (until fully amortized) over a period of 20 years the contributions which would be required to be made

under the plan but for the provisions of subsection (c)(7)(A)(i)(I) of this section.

(3) For a plan year, the funding standard account shall be credited with the sum of—

(A) the amount considered contributed by

the employer to or under the plan for the plan

year,

(B) the amount necessary to amortize in

equal annual installments (until fully amortized)—

(i) separately, with respect to each plan

year, the net decrease (if any) in unfunded

past service liability under the plan arising

from plan amendments adopted in such year,

over a period of 30 plan years,

(ii) separately, with respect to each plan

year, the net experience gain (if any) under

the plan, over a period of 5 plan years (15

plan years in the case of a multiemployer

plan), and

(iii) separately, with respect to each plan

year, the net gain (if any) resulting from

changes in actuarial assumptions used under

the plan, over a period of 10 plan years (30

plan years in the case of a multiemployer

plan),

(C) the amount of the waived funding deficiency (within the meaning of section 1083(c)

of this title) for the plan year, and

(D) in the case of a plan year for which the

accumulated funding deficiency is determined

under the funding standard account if such

plan year follows a plan year for which such

deficiency was determined under the alternative minimum funding standard, the excess

(if any) of any debit balance in the funding

standard account (determined without regard

to this subparagraph) over any debit balance

in the alternative minimum funding standard

account.

(4) 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—

(A) may be combined into one amount under

such paragraph to be amortized over a period

determined on the basis of the remaining amortization period for all items entering into

such combined amount, and

(B) may be off set against amounts required

to be amortized under the other such paragraph, with the resulting amount to be amortized over a period determined on the basis of

the remaining amortization periods for all

items entering into whichever of the two

amounts being offset is the greater.

(5) INTEREST.—

(A) IN GENERAL.—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.

(B) REQUIRED CHANGE OF INTEREST RATE.—

For purposes of determining a plan’s current

liability and for purposes of determining a

plan’s required contribution under subsection

(d) of this section for any plan year—

(i) IN GENERAL.—If any rate of interest

used under the plan to determine cost is not

within the permissible range, the plan shall

establish a new rate of interest within the

permissible range.

(ii) PERMISSIBLE RANGE.—For purposes of

this subparagraph—

(I) IN GENERAL.—Except as provided in

subclause (II), the term ‘‘permissible

range’’ means a rate of interest which is

not more than 10 percent above, and not

more than 10 percent below, the the 1

weighted average of the rates of interest

on 30-year Treasury securities during the
Page 409 TITLE 29—LABOR § 1082

4-year period ending on the last day before

the beginning of the plan year.

(II) SECRETARIAL AUTHORITY.—If the Secretary finds that the lowest rate of interest permissible under subclause (I) is unreasonably high, the Secretary may prescribe a lower rate of interest, except that

such rate may not be less than 80 percent

of the average rate determined under subclause (I).

(iii) ASSUMPTIONS.—Notwithstanding subsection (c)(3)(A)(i) of this section, the interest rate used under the plan shall be—

(I) determined without taking into account the experience of the plan and reasonable expectations, but

(II) consistent with the assumptions

which reflect the purchase rates which

would be used by insurance companies to

satisfy the liabilities under the plan.

(6) In the case of a plan which, immediately

before September 26, 1980, was a multiemployer

plan (within the meaning of section 1002(37) of

this title as in effect immediately before such

date)—

(A) any amount described in paragraph

(2)(B)(ii), (2)(B)(iii), or (3)(B)(i) of this subsection which arose in a plan year beginning

before such date shall be amortized in equal

annual installments (until fully amortized)

over 40 plan years, beginning with the plan

year in which the amount arose;

(B) any amount described in paragraph

(2)(B)(iv) or (3)(B)(ii) of this subsection which

arose in a plan year beginning before such

date shall be amortized in equal annual installments (until fully amortized) over 20 plan

years, beginning with the plan year in which

the amount arose;

(C) any change in past service liability

which arises during the period of 3 plan years

beginning on or after such date, and results

from a plan amendment adopted before such

date, shall be amortized in equal annual installments (until fully amortized) over 40 plan

years, beginning with the plan year in which

the change arises; and

(D) any change in past service liability

which arises during the period of 2 plan years

beginning on or after such date, and results

from the changing of a group of participants

from one benefit level to another benefit level

under a schedule of plan benefits which—

(i) was adopted before such date, and

(ii) was effective for any plan participant

before the beginning of the first plan year

beginning on or after such date,

shall be amortized in equal annual installments (until fully amortized) over 40 plan

years, beginning with the plan year in which

the increase arises.

(7) For purposes of this part—

(A) Any amount received by a multiemployer plan in payment of all or part of an employer’s withdrawal liability under part 1 of

subtitle E of subchapter III of this chapter

shall be considered an amount contributed by

the employer to or under the plan. The Secretary of the Treasury may prescribe by regulation additional charges and credits to a

multiemployer plan’s funding standard account to the extent necessary to prevent withdrawal liability payments from being unduly

reflected as advance funding for plan liabilities.

(B) If a plan is not in reorganization in the

plan year but was in reorganization in the immediately preceding plan year, any balance in

the funding standard account at the close of

such immediately preceding plan year—

(i) shall be eliminated by an offsetting

credit or charge (as the case may be), but

(ii) shall be taken into account in subsequent plan years by being amortized in equal

annual installments (until fully amortized)

over 30 plan years.

The preceding sentence shall not apply to the

extent of any accumulated funding deficiency

under section 418B(a) of title 26 as of the end

of the last plan year that the plan was in reorganization.

(C) Any amount paid by a plan during a plan

year to the Pension Benefit Guaranty Corporation pursuant to section 1402 of this title or to

a fund exempt under section 501(c)(22) of title

26 pursuant to section 1403 of this title shall

reduce the amount of contributions considered

received by the plan for the plan year.

(D) Any amount paid by an employer pending a final determination of the employer’s

withdrawal liability under part 1 of subtitle E

of subchapter III of this chapter and subsequently refunded to the employer by the plan

shall be charged to the funding standard account in accordance with regulations prescribed by the Secretary.

(E) For purposes of the full funding limitation under subsection (c)(7) of this section, unless otherwise provided by the plan, the accrued liability under a multiemployer plan

shall not include benefits which are not nonforfeitable under the plan after the termination of the plan (taking into consideration

section 411(d)(3) of title 26).

(c) Methods

(1) For purposes of this part, normal costs, accrued liability, past service liabilities, and experience gains and losses shall be determined

under the funding method used to determine

costs under the plan.

(2)(A) For purposes of this part, 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.

(B) For purposes of this part, the value of a

bond or other evidence of indebtedness which is

not in default as to principal or interest may, at

the election of the plan administrator, be determined on an amortized basis running from initial cost at purchase to par value at maturity or

earliest call date. Any election under this subparagraph shall be made at such time and in

such manner as the Secretary of the Treasury

shall by regulations provide, shall apply to all

such evidences of indebtedness, and may be revoked only with the consent of the Secretary of

the Treasury. In the case of a plan other than a
§ 1082 TITLE 29—LABOR Page 410

multiemployer plan, this subparagraph shall not

apply, but the Secretary of the Treasury 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) of this section.

(3) For purposes of this section, all costs, liabilities, rates of interest, and other factors

under the plan shall be determined on the basis

of actuarial assumptions and methods—

(A) in the case of—

(i) a plan other than a multiemployer plan,

each of which is reasonable (taking into account the experience of the plan and reasonable expectations) or which, in the aggregate, result in a total contribution equivalent to that which would be determined if

each such assumption and method were reasonable, or

(ii) a multiemployer plan, which, in the

aggregate, are reasonable (taking into account the experiences of the plan and reasonable expectations), and

(B) which, in combination, offer the actuary’s best estimate of anticipated experience

under the plan.

(4) For purposes of this section, if—

(A) a change in benefits under the Social Security Act [42 U.S.C. 301 et seq.] or in other retirement benefits created under Federal or

State law, or

(B) a change in the definition of the term

‘‘wages’’ under section 3121 of title 26, or a

change in the amount of such wages taken

into account under regulations prescribed for

purposes of section 401(a)(5) of title 26,

results in an increase or decrease in accrued liability under a plan, such increase or decrease

shall be treated as an experience loss or gain.

(5)(A) IN GENERAL.—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.

(B) APPROVAL REQUIRED FOR CERTAIN CHANGES

IN ASSUMPTIONS BY CERTAIN SINGLE-EMPLOYER

PLANS SUBJECT TO ADDITIONAL FUNDING REQUIREMENT.—

(i) IN GENERAL.—No actuarial assumption

(other than the assumptions described in subsection (d)(7)(C) of this section) 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.

(ii) PLANS TO WHICH SUBPARAGRAPH APPLIES.—This subparagraph shall apply to a

plan only if—

(I) the plan is a defined benefit plan (other

than a multiemployer plan) to which subchapter III of this chapter applies;

(II) the aggregate unfunded vested benefits

as of the close of the preceding plan year (as

determined under section 1306(a)(3)(E)(iii) of

this title) of such plan and all other plans

maintained by the contributing sponsors (as

defined in section 1301(a)(13) of this title)

and members of such sponsors’ controlled

groups (as defined in section 1301(a)(14) of

this title) which are covered by subchapter

III of this chapter (disregarding plans with

no unfunded vested benefits) exceed

$50,000,000; and

(III) the change in assumptions (determined after taking into account any changes

in interest rate and mortality table) results

in a decrease in the unfunded current liability of the plan for the current plan year that

exceeds $50,000,000, or that exceeds $5,000,000

and that is 5 percent or more of the current

liability of the plan before such change.

(6) 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 section 1085 of this title) in excess of the full funding limitation—

(A) the funding standard account shall be

credited with the amount of such excess, and

(B) all amounts described in paragraphs (2),

(B), (C), and (D) and (3)(B) of subsection (b) of

this section which are required to be amortized shall be considered fully amortized for

purposes of such paragraphs.

(7) FULL-FUNDING LIMITATION.—

(A) IN GENERAL.—For purposes of paragraph

(6), the term ‘‘full-funding limitation’’ means

the excess (if any) of—

(i) the lesser of (I) the applicable percentage of current liability (including the expected increase in current liability due to

benefits accruing during the plan year), or

(II) the accrued liability (including normal

cost) under the plan (determined under the

entry age normal funding method if such accrued liability cannot be directly calculated

under the funding method used for the plan),

over

(ii) the lesser of—

(I) the fair market value of the plan’s assets, or

(II) the value of such assets determined

under paragraph (2).

(B) CURRENT LIABILITY.—For purposes of subparagraph (D) and subclause (I) of subparagraph (A)(i), the term ‘‘current liability’’ has

the meaning given such term by subsection

(d)(7) of this section (without regard to subparagraphs (C) and (D) thereof) and using the

rate of interest used under subsection (b)(5)(B)

of this section.

(C) SPECIAL RULE FOR PARAGRAPH (6)(B).—For

purposes of paragraph (6)(B), subparagraph

(A)(i) shall be applied without regard to subclause (I) thereof.

(D) REGULATORY AUTHORITY.—The Secretary

of the Treasury may by regulations provide—

(i) for adjustments to the percentage contained in subparagraph (A)(i) to take into

account the respective ages or lengths of

service of the participants, and

(ii) alternative methods based on factors

other than current liability for the determination of the amount taken into account

under subparagraph (A)(i).
Page 411 TITLE 29—LABOR § 1082

(E) MINIMUM AMOUNT.—

(i) IN GENERAL.—In no event shall the fullfunding limitation determined under subparagraph (A) be less than the excess (if any)

of—

(I) 90 percent of the current liability of

the plan (including the expected increase

in current liability due to benefits accruing during the plan year), over

(II) the value of the plan’s assets determined under paragraph (2).

(ii) CURRENT LIABILITY; ASSETS.—For purposes of clause (i)—

(I) the term ‘‘current liability’’ has the

meaning given such term by subsection

(d)(7) of this section (without regard to

subparagraph (D) thereof), and

(II) assets shall not be reduced by any

credit balance in the funding standard account.

(F) APPLICABLE PERCENTAGE.—For purposes

of subparagraph (A)(i)(I), the applicable percentage shall be determined in accordance

with the following table:

In the case of any plan The applicable

year beginning in— percentage is—

1999 or 2000 .............................................. 155

2001 or 2002 .............................................. 160

2003 or 2004 .............................................. 165

2005 and succeeding years ....................... 170.

(8) For purposes of this part, any amendment

applying to a plan year which—

(A) is adopted after the close of such plan

year but no later than 21

⁄2 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 he determines

that such amendment is necessary because of a

substantial business hardship (as determined

under section 1083(b) of this title) and that waiver under section 1083(a) of this title is unavailable or inadequate.

(9) For purposes of this part, 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.

(10) For purposes of this section—

(A) In the case of a defined benefit plan

other than a multiemployer plan, any contributions for a plan year made by an employer during the period—

(i) beginning on the day after the last day

of such plan year, and

(ii) ending on the date which is 81

⁄2 months

after the close of the plan year,

shall be deemed to have been made on such

last day.

(B) In the case of a plan not described in subparagraph (A), any contributions for a plan

year made by an employer after the last day of

such plan year, but not later than two and

one-half months after such day, shall be

deemed to have been made on such last day.

For purposes of this subparagraph, such two

and one-half month period may be extended

for not more than six months under regulations prescribed by the Secretary of the Treasury.

(11) LIABILITY FOR CONTRIBUTIONS.—

(A) IN GENERAL.—Except as provided in subparagraph (B), the amount of any contribution

required by this section and any required installments under subsection (e) of this section

shall be paid by the employer responsible for

contributing to or under the plan the amount

described in subsection (b)(3)(A) of this section.

(B) JOINT AND SEVERAL LIABILITY WHERE EMPLOYER MEMBER OF CONTROLLED GROUP.—

(i) IN GENERAL.—In the case of a plan other

than a multiemployer plan, if the employer

referred to in subparagraph (A) is a member

of a controlled group, each member of such

group shall be jointly and severally liable

for payment of such contribution or required

installment.

(ii) CONTROLLED GROUP.—For purposes of

clause (i), the term ‘‘controlled group’’

means any group treated as a single employer under subsection (b), (c), (m), or (o) of

section 414 of title 26.

(12) ANTICIPATION OF BENEFIT INCREASES EFFECTIVE IN THE FUTURE.—In determining projected

benefits, the funding method of a collectively

bargained plan described in section 413(a) of title

26 (other than a multiemployer plan) shall anticipate benefit increases scheduled to take effect during the term of the collective bargaining

agreement applicable to the plan.

(d) Additional funding requirements for plans

which are not multiemployer plans

(1) In general

In the case of a defined benefit plan (other

than a multiemployer plan) to which this subsection applies under paragraph (9) for any

plan year, the amount charged to the funding

standard account for such plan year shall be

increased by the sum of—

(A) the excess (if any) of—

(i) the deficit reduction contribution determined under paragraph (2) for such plan

year, over

(ii) the sum of the charges for such plan

year under subsection (b)(2) of this section,

reduced by the sum of the credits for such
§ 1082 TITLE 29—LABOR Page 412

plan year under subparagraph (B) of subsection (b)(3) of this section, plus

(B) the unpredictable contingent event

amount (if any) for such plan year.

Such increase shall not exceed the amount

which, after taking into account charges

(other than the additional charge under this

subsection) and credits under subsection (b) of

this section, 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.

(2) Deficit reduction contribution

For purposes of paragraph (1), the deficit reduction contribution determined under this

paragraph for any plan year is the sum of—

(A) the unfunded old liability amount,

(B) the unfunded new liability amount,

(C) the expected increase in current liability due to benefits accruing during the plan

year, and

(D) the aggregate of the unfunded mortality increase amounts.

(3) Unfunded old liability amount

For purposes of this subsection—

(A) In general

The unfunded old liability amount with respect to any plan for any plan year is the

amount necessary to amortize the unfunded

old liability under the plan in equal annual

installments over a period of 18 plan years

(beginning with the 1st plan year beginning

after December 31, 1988).

(B) Unfunded old liability

The term ‘‘unfunded old liability’’ means

the unfunded current liability of the plan as

of the beginning of the 1st plan year beginning after December 31, 1987 (determined

without regard to any plan amendment increasing liabilities adopted after October 16,

1987).

(C) Special rules for benefit increases under

existing collective bargaining agreements

(i) In general

In the case of a plan maintained pursuant to 1 or more collective bargaining

agreements between employee representatives and the employer ratified before October 29, 1987, the unfunded old liability

amount with respect to such plan for any

plan year shall be increased by the amount

necessary to amortize the unfunded existing benefit increase liability in equal annual installments over a period of 18 plan

years beginning with—

(I) the plan year in which the benefit

increase with respect to such liability

occurs, or

(II) if the taxpayer elects, the 1st plan

year beginning after December 31, 1988.

(ii) Unfunded existing benefit increase liabilities

For purposes of clause (i), the unfunded

existing benefit increase liability means,

with respect to any benefit increase under

the agreements described in clause (i)

which takes effect during or after the 1st

plan year beginning after December 31,

1987, the unfunded current liability determined—

(I) by taking into account only liabilities attributable to such benefit increase, and

(II) by reducing (but not below zero)

the amount determined under paragraph

(8)(A)(ii) by the current liability determined without regard to such benefit increase.

(iii) Extensions, modifications, etc. not

taken into account

For purposes of this subparagraph, any

extension, amendment, or other modification of an agreement after October 28, 1987,

shall not be taken into account.

(D) Special rule for required changes in actuarial assumptions

(i) In general

The unfunded old liability amount with

respect to any plan for any plan year shall

be increased by the amount necessary to

amortize the amount of additional unfunded old liability under the plan in equal

annual installments over a period of 12

plan years (beginning with the first plan

year beginning after December 31, 1994).

(ii) Additional unfunded old liability

For purposes of clause (i), the term ‘‘additional unfunded old liability’’ means the

amount (if any) by which—

(I) the current liability of the plan as

of the beginning of the first plan year beginning after December 31, 1994, valued

using the assumptions required by paragraph (7)(C) as in effect for plan years beginning after December 31, 1994, exceeds

(II) the current liability of the plan as

of the beginning of such first plan year,

valued using the same assumptions used

under subclause (I) (other than the assumptions required by paragraph (7)(C)),

using the prior interest rate, and using

such mortality assumptions as were used

to determine current liability for the

first plan year beginning after December

31, 1992.

(iii) Prior interest rate

For purposes of clause (ii), the term

‘‘prior interest rate’’ means the rate of interest that is the same percentage of the

weighted average under subsection

(b)(5)(B)(ii)(I) of this section for the first

plan year beginning after December 31,

1994, as the rate of interest used by the

plan to determine current liability for the

first plan year beginning after December

31, 1992, is of the weighted average under

subsection (b)(5)(B)(ii)(I) of this section for

such first plan year beginning after December 31, 1992.

(E) Optional rule for additional unfunded old

liability

(i) In general

If an employer makes an election under

clause (ii), the additional unfunded old li-
Page 413 TITLE 29—LABOR § 1082

ability for purposes of subparagraph (D)

shall be the amount (if any) by which—

(I) the unfunded current liability of

the plan as of the beginning of the first

plan year beginning after December 31,

1994, valued using the assumptions required by paragraph (7)(C) as in effect for

plan years beginning after December 31,

1994, exceeds

(II) the unamortized portion of the unfunded old liability under the plan as of

the beginning of the first plan year beginning after December 31, 1994.

(ii) Election

(I) An employer may irrevocably elect to

apply the provisions of this subparagraph

as of the beginning of the first plan year

beginning after December 31, 1994.

(II) If an election is made under this

clause, the increase under paragraph (1) for

any plan year beginning after December

31, 1994, and before January 1, 2002, to

which this subsection applies (without regard to this subclause) shall not be less

than the increase that would be required

under paragraph (1) if the provisions of

this subchapter as in effect for the last

plan year beginning before January 1, 1995,

had remained in effect.

(4) Unfunded new liability amount

For purposes of this subsection—

(A) In general

The unfunded new liability amount with

respect to any plan for any plan year is the

applicable percentage of the unfunded new

liability.

(B) Unfunded new liability

The term ‘‘unfunded new liability’’ means

the unfunded current liability of the plan for

the plan year determined without regard

to—

(i) the unamortized portion of the unfunded old liability, the unamortized portion of the additional unfunded old liability, the unamortized portion of each unfunded mortality increase, and the unamortized portion of the unfunded existing

benefit increase liability, and

(ii) the liability with respect to any unpredictable contingent event benefits

(without regard to whether the event has

occurred).

(C) Applicable percentage

The term ‘‘applicable percentage’’ means,

with respect to any plan year, 30 percent, reduced by the product of—

(i) .40 multiplied by

(ii) the number of percentage points (if

any) by which the funded current liability

percentage exceeds 60 percent.

(5) Unpredictable contingent event amount

(A) In general

The unpredictable contingent event

amount with respect to a plan for any plan

year is an amount equal to the greatest of—

(i) the applicable percentage of the product of—

(I) 100 percent, reduced (but not below

zero) by the funded current liability percentage for the plan year, multiplied by

(II) the amount of unpredictable contingent event benefits paid during the

plan year, including (except as provided

by the Secretary of the Treasury) any

payment for the purchase of an annuity

contract for a participant or beneficiary

with respect to such benefits,

(ii) the amount which would be determined for the plan year if the unpredictable contingent event benefit liabilities

were amortized in equal annual installments over 7 plan years (beginning with

the plan year in which such event occurs),

or

(iii) the additional amount that would be

determined under paragraph (4)(A) if the

unpredictable contingent event benefit liabilities were included in unfunded new liability notwithstanding paragraph

(4)(B)(ii).

(B) Applicable percentage

In the case of plan years The applicable

beginning in: percentage is:

1989 and 1990 ......................................... 5

1991 ....................................................... 10

1992 ....................................................... 15

1993 ....................................................... 20

1994 ....................................................... 30

1995 ....................................................... 40

1996 ....................................................... 50

1997 ....................................................... 60

1998 ....................................................... 70

1999 ....................................................... 80

2000 ....................................................... 90

2001 and thereafter ............................... 100.

(C) Paragraph not to apply to existing benefits

This paragraph shall not apply to unpredictable contingent event benefits (and liabilities attributable thereto) for which the

event occurred before the first plan year beginning after December 31, 1988.

(D) Special rule for first year of amortization

Unless the employer elects otherwise, the

amount determined under subparagraph (A)

for the plan year in which the event occurs

shall be equal to 150 percent of the amount

determined under subparagraph (A)(i). The

amount under subparagraph (A)(ii) for subsequent plan years in the amortization period

shall be adjusted in the manner provided by

the Secretary of the Treasury to reflect the

application of this subparagraph.

(E) Limitation

The present value of the amounts described in subparagraph (A) with respect to

any one event shall not exceed the unpredictable contingent event benefit liabilities

attributable to that event.

(6) Special rules for small plans

(A) Plans with 100 or fewer participants

This subsection shall not apply to any plan

for any plan year if on each day during the

preceding plan year such plan had no more

than 100 participants.
§ 1082 TITLE 29—LABOR Page 414

(B) Plans with more than 100 but not more

than 150 participants

In the case of a plan to which subparagraph (A) does not apply and which on each

day during the preceding plan year had no

more than 150 participants, the amount of

the increase under paragraph (1) for such

plan year shall be equal to the product of—

(i) such increase determined without regard to this subparagraph, multiplied by

(ii) 2 percent for the highest number of

participants in excess of 100 on any such

day.

(C) Aggregation of plans

For purposes of this paragraph, all defined

benefit plans maintained by the same employer (or any member of such employer’s

controlled group) shall be treated as 1 plan,

but only employees of such employer or

member shall be taken into account.

(7) Current liability

For purposes of this subsection—

(A) In general

The term ‘‘current liability’’ means all liabilities to participants and their beneficiaries under the plan.

(B) Treatment of unpredictable contingent

event benefits

(i) In general

For purposes of subparagraph (A), any

unpredictable contingent event benefit

shall not be taken into account until the

event on which the benefit is contingent

occurs.

(ii) Unpredictable contingent event benefit

The term ‘‘unpredictable contingent

event benefit’’ means any benefit contingent on an event other than—

(I) age, service, compensation, death,

or disability, or

(II) an event which is reasonably and

reliably predictable (as determined by

the Secretary of the Treasury).

(C) Interest rate and mortality assumptions

used

Effective for plan years beginning after

December 31, 1994—

(i) Interest rate

(I) In general

The rate of interest used to determine

current liability under this subsection

shall be the rate of interest used under

subsection (b)(5) of this section, except

that the highest rate in the permissible

range under subparagraph (B)(ii) thereof

shall not exceed the specified percentage

under subclause (II) of the weighted average referred to in such subparagraph.

(II) Specified percentage

For purposes of subclause (I), the specified percentage shall be determined as

follows:

In the case of

plan years beginning The specified

in calendar year: percentage is:

1995 .................................................... 109

1996 .................................................... 108

1997 .................................................... 107

1998 .................................................... 106

1999 and thereafter ............................ 105.

(ii) Mortality tables

(I) Commissioners’ standard table

In the case of plan years beginning before the first plan year to which the first

tables prescribed under subclause (II)

apply, the mortality table used in determining current liability under this subsection shall be the table prescribed by

the Secretary of the Treasury which is

based on the prevailing commissioners’

standard table (described in section

807(d)(5)(A) of title 26) used to determine

reserves for group annuity contracts issued on January 1, 1993.

(II) Secretarial authority

The Secretary of the Treasury may by

regulation prescribe for plan years beginning after December 31, 1999, mortality tables to be used in determining current liability under this subsection. Such

tables shall be based upon the actual experience of pension plans and projected

trends in such experience. In prescribing

such tables, the Secretary of the Treasury shall take into account results of

available independent studies of mortality of individuals covered by pension

plans.

(III) Periodic review

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 determines necessary, by regulation update

the tables to reflect the actual experience of pension plans and projected

trends in such experience.

(iii) Separate mortality tables for the disabled

Notwithstanding clause (ii)—

(I) In general

In the case of plan years beginning

after December 31, 1995, the Secretary of

the Treasury shall establish mortality

tables which may be used (in lieu of the

tables under clause (ii)) to determine

current liability under this subsection

for individuals who are entitled to benefits under the plan on account of disability. Such Secretary shall establish separate tables for individuals whose disabilities occur in plan years beginning before January 1, 1995, and for individuals

whose disabilities occur in plan years beginning on or after such date.

(II) Special rule for disabilities occurring

after 1994

In the case of disabilities occurring in

plan years beginning after December 31,

1994, the tables under subclause (I) shall

apply only with respect to individuals
Page 415 TITLE 29—LABOR § 1082

described in such subclause who are disabled within the meaning of title II of

the Social Security Act [42 U.S.C. 401 et

seq.] and the regulations thereunder.

(III) Plan years beginning in 1995

In the case of any plan year beginning

in 1995, a plan may use its own mortality

assumptions for individuals who are entitled to benefits under the plan on account of disability.

(D) Certain service disregarded

(i) In general

In the case of a participant to whom this

subparagraph applies, only the applicable

percentage of the years of service before

such individual became a participant shall

be taken into account in computing the

current liability of the plan.

(ii) Applicable percentage

For purposes of this subparagraph, the

applicable percentage shall be determined

as follows:

If the years of The applicable

participation are: percentage is:

1 .................................................. 20

2 .................................................. 40

3 .................................................. 60

4 .................................................. 80

5 or more ..................................... 100.

(iii) Participants to whom subparagraph

applies

This subparagraph shall apply to any

participant who, at the time of becoming a

participant—

(I) has not accrued any other benefit

under any defined benefit plan (whether

or not terminated) maintained by the

employer or a member of the same controlled group of which the employer is a

member,

(II) who first becomes a participant

under the plan in a plan year beginning

after December 31, 1987, and

(III) has years of service greater than

the minimum years of service necessary

for eligibility to participate in the plan.

(iv) Election

An employer may elect not to have this

subparagraph apply. Such an election,

once made, may be revoked only with the

consent of the Secretary of the Treasury.

(8) Other definitions

For purposes of this subsection—

(A) Unfunded current liability

The term ‘‘unfunded current liability’’

means, with respect to any plan year, the excess (if any) of—

(i) the current liability under the plan,

over

(ii) value of the plan’s assets determined

under subsection (c)(2) of this section.

(B) Funded current liability percentage

The term ‘‘funded current liability percentage’’ means, with respect to any plan

year, the percentage which—

(i) the amount determined under subparagraph (A)(ii), is of

(ii) the current liability under the plan.

(C) Controlled group

The term ‘‘controlled group’’ means any

group treated as a single employer under

subsections (b), (c), (m), and (o) of section 414

of title 26.

(D) Adjustments to prevent omissions and

duplications

The Secretary of the Treasury shall provide such adjustments in the unfunded old

liability amount, the unfunded new liability

amount, the unpredictable contingent event

amount, the current payment amount, and

any other charges or credits under this section as are necessary to avoid duplication or

omission of any factors in the determination

of such amounts, charges, or credits.

(E) Deduction for credit balances

For purposes of this subsection, the

amount determined under subparagraph

(A)(ii) shall be reduced by any credit balance

in the funding standard account. The Secretary of the Treasury may provide for such

reduction for purposes of any other provision

which references this subsection.

(9) Applicability of subsection

(A) In general

Except as provided in paragraph (6)(A),

this subsection shall apply to a plan for any

plan year if its funded current liability percentage for such year is less than 90 percent.

(B) Exception for certain plans at least 80

percent funded

Subparagraph (A) shall not apply to a plan

for a plan year if—

(i) the funded current liability percentage for the plan year is at least 80 percent,

and

(ii) such percentage for each of the 2 immediately preceding plan years (or each of

the 2d and 3d immediately preceding plan

years) is at least 90 percent.

(C) Funded current liability percentage

For purposes of subparagraphs (A) and (B),

the term ‘‘funded current liability percentage’’ has the meaning given such term by

paragraph (8)(B), except that such percentage shall be determined for any plan year—

(i) without regard to paragraph (8)(E),

and

(ii) by using the rate of interest which is

the highest rate allowable for the plan

year under paragraph (7)(C).

(D) Transition rules

For purposes of this paragraph:

(i) Funded percentage for years before 1995

The funded current liability percentage

for any plan year beginning before January 1, 1995, shall be treated as not less than

90 percent only if for such plan year the

plan met one of the following requirements (as in effect for such year):

(I) The full-funding limitation under

subsection (c)(7) of this section for the

plan was zero.
§ 1082 TITLE 29—LABOR Page 416

(II) The plan had no additional funding

requirement under this subsection (or

would have had no such requirement if

its funded current liability percentage

had been determined under subparagraph

(C)).

(III) The plan’s additional funding requirement under this subsection did not

exceed the lesser of 0.5 percent of current

liability or $5,000,000.

(ii) Special rule for 1995 and 1996

For purposes of determining whether

subparagraph (B) applies to any plan year

beginning in 1995 or 1996, a plan shall be

treated as meeting the requirements of

subparagraph (B)(ii) if the plan met the requirements of clause (i) of this subparagraph for any two of the plan years beginning in 1992, 1993, and 1994 (whether or not

consecutive).

(10) Unfunded mortality increase amount

(A) In general

The unfunded mortality increase amount

with respect to each unfunded mortality increase is the amount necessary to amortize

such increase in equal annual installments

over a period of 10 plan years (beginning

with the first plan year for which a plan uses

any new mortality table issued under paragraph (7)(C)(ii)(II) or (III)).

(B) Unfunded mortality increase

For purposes of subparagraph (A), the term

‘‘unfunded mortality increase’’ means an

amount equal to the excess of—

(i) the current liability of the plan for

the first plan year for which a plan uses

any new mortality table issued under paragraph (7)(C)(ii)(II) or (III), over

(ii) the current liability of the plan for

such plan year which would have been determined if the mortality table in effect

for the preceding plan year had been used.

(11) Phase-in of increases in funding required

by Retirement Protection Act of 1994

(A) In general

For any applicable plan year, at the election of the employer, the increase under

paragraph (1) shall not exceed the greater

of—

(i) the increase that would be required

under paragraph (1) if the provisions of

this subchapter as in effect for plan years

beginning before January 1, 1995, had remained in effect, or

(ii) the amount which, after taking into

account charges (other than the additional

charge under this subsection) and credits

under subsection (b) of this section, 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) for the applicable plan year to a percentage equal to the sum of the initial

funded current liability percentage of the

plan plus the applicable number of percentage points for such applicable plan

year.

(B) Applicable number of percentage points

(i) Initial funded current liability percentage of 75 percent or less

Except as provided in clause (ii), for

plans with an initial funded current liability percentage of 75 percent or less, the applicable number of percentage points for

the applicable plan year is:

In the case The applicable

of applicable number of

plan years percentage

beginning in: points is:

1995 ................................................. 3

1996 ................................................. 6

1997 ................................................. 9

1998 ................................................. 12

1999 ................................................. 15

2000 ................................................. 19

2001 ................................................. 24.

(ii) Other cases

In the case of a plan to which this clause

applies, the applicable number of percentage points for any such applicable plan

year is the sum of—

(I) 2 percentage points;

(II) the applicable number of percentage points (if any) under this clause for

the preceding applicable plan year;

(III) the product of .10 multiplied by

the excess (if any) of (a) 85 percentage

points over (b) the sum of the initial

funded current liability percentage and

the number determined under subclause

(II);

(IV) for applicable plan years beginning in 2000, 1 percentage point; and

(V) for applicable plan years beginning

in 2001, 2 percentage points.

(iii) Plans to which clause (ii) applies

(I) In general

Clause (ii) shall apply to a plan for an

applicable plan year if the initial funded

current liability percentage of such plan

is more than 75 percent.

(II) Plans initially under clause (i)

In the case of a plan which (but for this

subclause) has an initial funded current

liability percentage of 75 percent or less,

clause (ii) (and not clause (i)) shall apply

to such plan with respect to applicable

plan years beginning after the first applicable plan year for which the sum of

the initial funded current liability percentage and the applicable number of

percentage points (determined under

clause (i)) exceeds 75 percent. For purposes of applying clause (ii) to such a

plan, the initial funded current liability

percentage of such plan shall be treated

as being the sum referred to in the preceding sentence.

(C) Definitions

For purposes of this paragraph—

(i) The term ‘‘applicable plan year’’

means a plan year beginning after December 31, 1994, and before January 1, 2002.

(ii) The term ‘‘initial funded current liability percentage’’ means the funded cur-
Page 417 TITLE 29—LABOR § 1082

rent liability percentage as of the first day

of the first plan year beginning after December 31, 1994.

(e) Quarterly contributions required

(1) In general

If a defined benefit plan (other than a multiemployer plan) which has a funded current liability percentage (as defined in subsection

(d)(8) of this section) 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) of this section with respect to the

amount of the underpayment for the period of

the underpayment shall be equal to the greater of—

(A) 175 percent of the Federal mid-term

rate (as in effect under section 1274 of title 26

for the 1st month of such plan year), or

(B) the rate of interest used under the plan

in determining costs (including adjustments

under subsection (b)(5)(B) of this section).

(2) Amount of underpayment, period of underpayment

For purposes of paragraph (1)—

(A) Amount

The amount of the underpayment shall be

the excess of—

(i) the required installment, over

(ii) the amount (if any) of the installment contributed to or under the plan on

or before the due date for the installment.

(B) Period of underpayment

The period for which any interest is

charged under this subsection with respect

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)(10) of this section).

(C) Order of crediting contributions

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.

(3) Number of required installments; due dates

For purposes of this subsection—

(A) Payable in 4 installments

There shall be 4 required installments for

each plan year.

(B) Time for payment of installments

In the case of the following

required installments: The due date is:

1st ................................. April 15

2nd ................................ July 15

3rd ................................. October 15

4th ................................. January 15 of the

following year.

(4) Amount of required installment

For purposes of this subsection—

(A) In general

The amount of any required installment

shall be the applicable percentage of the required annual payment.

(B) Required annual payment

For purposes of subparagraph (A), the term

‘‘required annual payment’’ means the lesser

of—

(i) 90 percent of the amount required to

be contributed to or under the plan by the

employer for the plan year under section

412 of title 26 (without regard to any waiver under subsection (c) thereof), or

(ii) 100 percent of the amount so required

for the preceding plan year.

Clause (ii) shall not apply if the preceding

plan year was not a year of 12 months.

(C) Applicable percentage

For purposes of subparagraph (A), the applicable percentage shall be determined in

accordance with the following table:

For plan years The applicable

beginning in: percentage is:

1989 ................................................. 6.25

1990 ................................................. 12.5

1991 ................................................. 18.75

1992 and thereafter ......................... 25.

(D) Special rules for unpredictable contingent event benefits

In the case of a plan to which subsection

(d) of this section applies for any calendar

year and which has any unpredictable contingent event benefit liabilities—

(i) Liabilities not taken into account

Such liabilities shall not be taken into

account in computing the required annual

payment under subparagraph (B).

(ii) Increase in installments

Each required installment shall be increased by the greatest of—

(I) the unfunded percentage of the

amount of benefits described in subsection (d)(5)(A)(i) of this section paid

during the 3-month period preceding the

month in which the due date for such installment occurs,

(II) 25 percent of the amount determined under subsection (d)(5)(A)(ii) of

this section for the plan year, or

(III) 25 percent of the amount determined under subsection (d)(5)(A)(iii) of

this section for the plan year.

(iii) Unfunded percentage

For purposes of clause (ii)(I), the term

‘‘unfunded percentage’’ means the percentage determined under subsection

(d)(5)(A)(i)(I) of this section for the plan

year.

(iv) Limitation on increase

In no event shall the increases under

clause (ii) exceed the amount necessary to

increase the funded current liability percentage (within the meaning of subsection

(d)(8)(B) of this section) for the plan year

to 100 percent.

(5) Liquidity requirement

(A) In general

A plan to which this paragraph applies

shall be treated as failing to pay the full
§ 1082 TITLE 29—LABOR Page 418

amount of any required installment to the

extent that the value of the liquid assets

paid in such installment is less than the liquidity shortfall (whether or not such liquidity shortfall exceeds the amount of such

installment required to be paid but for this

paragraph).

(B) Plans to which paragraph applies

This paragraph shall apply to a defined

benefit plan (other than a multiemployer

plan or a plan described in subsection

(d)(6)(A) of this section) which—

(i) is required to pay installments under

this subsection for a plan year, and

(ii) has a liquidity shortfall for any quarter during such plan year.

(C) Period of underpayment

For purposes of paragraph (1), any portion

of an installment that is treated as not paid

under subparagraph (A) shall continue to be

treated as unpaid until the close of the quarter in which the due date for such installment occurs.

(D) Limitation on increase

If the amount of any required installment

is increased by reason of subparagraph (A),

in no event shall such increase exceed the

amount which, when added to prior installments for the plan year, is necessary to increase the funded current liability percentage (taking into account the expected increase in current liability due to benefits accruing during the plan year) to 100 percent.

(E) Definitions

For purposes of this paragraph—

(i) Liquidity shortfall

The term ‘‘liquidity shortfall’’ means,

with respect to any required installment,

an amount equal to the excess (as of the

last day of the quarter for which such installment is made) of the base amount

with respect to such quarter over the value

(as of such last day) of the plan’s liquid assets.

(ii) Base amount

(I) In general

The term ‘‘base amount’’ means, with

respect to any quarter, an amount equal

to 3 times the sum of the adjusted disbursements from the plan for the 12

months ending on the last day of such

quarter.

(II) Special rule

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.

(iii) Disbursements from the plan

The term ‘‘disbursements from the plan’’

means all disbursements from the trust,

including purchases of annuities, payments of single sums and other benefits,

and administrative expenses.

(iv) Adjusted disbursements

The term ‘‘adjusted disbursements’’

means disbursements from the plan reduced by the product of—

(I) the plan’s funded current liability

percentage (as defined in subsection

(d)(8) of this section) for the plan year,

and

(II) 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.

(v) Liquid assets

The term ‘‘liquid assets’’ means cash,

marketable securities and such other assets as specified by the Secretary of the

Treasury in regulations.

(vi) Quarter

The term ‘‘quarter’’ means, with respect

to any required installment, the 3-month

period preceding the month in which the

due date for such installment occurs.

(F) Regulations

The Secretary of the Treasury may prescribe such regulations as are necessary to

carry out this paragraph.

(6) Fiscal years and short years

(A) Fiscal years

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.

(B) Short plan year

This section shall be applied to plan years

of less than 12 months in accordance with

regulations prescribed by the Secretary of

the Treasury.

(f) Imposition of lien where failure to make required contributions

(1) In general

In the case of a plan covered under section

1321 of this title, if—

(A) any person fails to make a required installment under subsection (e) of this section or any other payment required under

this section before the due date for such installment or other payment, and

(B) 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,

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,
Page 419 TITLE 29—LABOR § 1082

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.

(2) Plans to which subsection applies

This subsection shall apply to a defined benefit plan (other than a multiemployer plan) for

any plan year for which the funded current liability percentage (within the meaning of subsection (d)(8)(B) of this section) of such plan is

less than 100 percent.

(3) Amount of lien

For purposes of paragraph (1), the amount of

the lien shall be equal to the aggregate unpaid

balance of required installments and other

payments required under this section (including interest)—

(A) for plan years beginning after 1987, and

(B) for which payment has not been made

before the due date.

(4) Notice of failure; lien

(A) Notice of failure

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.

(B) Period of lien

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.

(C) Certain rules to apply

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 1368 of this title

shall apply with respect to a lien imposed by

subsection (a) of this section and the amount

with respect to such lien.

(5) Enforcement

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 the contributing sponsor (or any

member of the controlled group of the contributing sponsor).

(6) Definitions

For purposes of this subsection—

(A) Due date; required installment

The terms ‘‘due date’’ and ‘‘required installment’’ have the meanings given such

terms by subsection (e) of this section, 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.

(B) Controlled group

The term ‘‘controlled group’’ means any

group treated as a single employer under

subsections (b), (c), (m), and (o) of section 414

of title 26.

(g) Qualified transfers to health benefit accounts

For purposes of this section, in the case of a

qualified transfer (as defined in section 420 of

title 26)—

(1) any assets transferred in a plan year on

or before the valuation date for such year (and

any income allocable thereto) shall, for purposes of subsection (c)(7) of this section, be

treated as assets in the plan as of the valuation date for such year, and

(2) the plan shall be treated as having a net

experience loss under subsection (b)(2)(B)(iv)

of this section in an amount equal to the

amount of such transfer (reduced by any

amounts transferred back to the plan under

section 420(c)(1)(B) of title 26) and for which

amortization charges begin for the first plan

year after the plan year in which such transfer

occurs, except that such subsection shall be

applied to such amount by substituting ‘‘10

plan years’’ for ‘‘5 plan years’’.

(h) Cross reference

For alternative amortization method for certain

multiemployer plans see section 1013(d) of this Act.

(Pub. L. 93–406, title I, §302, Sept. 2, 1974, 88 Stat.

869; Pub. L. 96–364, title III, §304(b), Sept. 26,

1980, 94 Stat. 1293; Pub. L. 100–203, title IX,

§§9301(b), 9303(b), (d)(2), 9304(a)(2), (b)(2), (e)(2),

9305(b)(2), 9307(a)(2), (b)(2), (e)(2), Dec. 22, 1987, 101

Stat. 1330–332, 1330–337, 1330–342, 1330–344,

1330–346, 1330–349, 1330–352, 1330–356 to 1330–358;

Pub. L. 100–647, title II, §2005(a)(2)(B), (d)(2), Nov.

10, 1988, 102 Stat. 3610, 3612; Pub. L. 101–239, title

VII, §§7881(a)(1)(B), (2)(B), (3)(B), (4)(B), (5)(B),

(6)(B), (b)(1)(B), (2)(B), (3)(B), (4)(B), (6)(B)(i),

(d)(1)(B), (2), (4), 7891(a)(1), 7892(b), 7894(d)(2), (5),

Dec. 19, 1989, 103 Stat. 2435–2439, 2445, 2447, 2449,

2450; Pub. L. 101–508, title XII, §12012(c), Nov. 5,

1990, 104 Stat. 1388–572; Pub. L. 103–465, title VII,

§§761(a)(1)–(9)(A), (10), 762(a), 763(a), 764(a), 768(b),

Dec. 8, 1994, 108 Stat. 5024–5031, 5033–5036, 5041;

Pub. L. 105–34, title XV, §1521(b), (c)(2), (3)(B),

title XVI, §1604(b)(2)(B), Aug. 5, 1997, 111 Stat.

1069, 1070, 1097.)

REFERENCES IN TEXT

The Social Security Act, referred to in subsecs.

(c)(4)(A) and (d)(7)(C)(iii)(II), is act Aug. 14, 1935, ch. 531,

49 Stat. 620, as amended, which is classified generally

to chapter 7 (§301 et seq.) of Title 42, The Public Health

and Welfare. Title II of the Act is classified generally

to subchapter II (§401 et seq.) of chapter 7 of Title 42.

For complete classification of this Act to the Code, see

section 1305 of Title 42 and Tables.

The Retirement Protection Act of 1994, referred to in

subsec. (d)(11), is subtitle F (§§750–781) of title VII of

Pub. L. 103–465, Dec. 8, 1994, 108 Stat. 5012. For complete

classification of this Act to the Code, see Short Title of

1994 Amendment note set out under section 1 of Title

26, Internal Revenue Code, and Tables.

Section 1013(d) of this Act, referred to in subsec. (h),

is section 1013(d) of Pub. L. 93–406, which is set out as

an Alternative Amortization Method for Certain Multiemployer Plans note under section 412 of Title 26.

CODIFICATION

Section 2005(d)(2) of Pub. L. 100–647, which directed

that subsec. (d)(3)(B) of this section be amended by
§ 1082 TITLE 29—LABOR Page 420

striking out ‘‘October 17, 1987’’ in cl. (i) and inserting in

lieu thereof ‘‘October 29, 1987’’, and by striking out

‘‘October 16, 1987’’ in cl. (iii) and inserting in lieu thereof ‘‘October 28, 1987’’, could not be executed because it

did not contain cls. (i) and (iii).

AMENDMENTS

1997—Subsec. (b)(2)(E). Pub. L. 105–34, §1521(c)(2),

added subpar. (E).

Subsec. (c)(7)(A)(i)(I). Pub. L. 105–34, §1521(b)(A), substituted ‘‘the applicable percentage’’ for ‘‘150 percent’’.

Subsec. (c)(7)(D). Pub. L. 105–34, §1521(c)(3)(B), 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(b)(B), added

subpar. (F).

Subsec. (e)(5)(E)(ii)(II). Pub. L. 105–34, §1604(b)(2)(B),

substituted ‘‘subclause (I)’’ for ‘‘clause (i)’’.

1994—Subsec. (c)(5). Pub. L. 103–465, §762(a), designated existing provisions as subpar. (A), inserted

heading, and added subpar. (B).

Subsec. (c)(7)(A)(i). Pub. L. 103–465, §761(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, §761(a)(10)(C),

amended heading and text of subpar. (B) 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 (d)(7) of this section (without regard to subparagraph (D) thereof).’’

Subsec. (c)(7)(E). Pub. L. 103–465, §761(a)(10)(B), added

subpar. (E).

Subsec. (c)(12). Pub. L. 103–465, §763(a), added par. (12).

Subsec. (d)(1). Pub. L. 103–465, §761(a)(1)(A), (2)(B),

substituted ‘‘to which this subsection applies under

paragraph (9)’’ for ‘‘which has an unfunded current liability’’ in introductory provisions and substituted last

sentence for one which read ‘‘Such increase shall not

exceed the amount necessary to increase the funded

current liability percentage to 100 percent.’’

Subsec. (d)(1)(A)(ii). Pub. L. 103–465, §761(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) of this

section, reduced by the sum of the credits for such plan

year under subparagraph (B)(i) of subsection (b)(3) of

this section, plus’’.

Subsec. (d)(2)(C), (D). Pub. L. 103–465, §761(a)(3),

(7)(B)(i), added subpars. (C) and (D).

Subsec. (d)(3)(D), (E). Pub. L. 103–465, §761(a)(4)(A),

added subpars. (D) and (E).

Subsec. (d)(4)(B)(i). Pub. L. 103–465, §761(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 ‘‘the

unfunded old liability’’.

Subsec. (d)(4)(C). Pub. L. 103–465, §761(a)(5), substituted ‘‘.40’’ for ‘‘.25’’ in cl. (i) and ‘‘60’’ for ‘‘35’’ in cl.

(ii).

Subsec. (d)(5)(A). Pub. L. 103–465, §761(a)(6)(A)(i), substituted ‘‘greatest of’’ for ‘‘greater of’’ in introductory

provisions.

Subsec. (d)(5)(A)(iii). Pub. L. 103–465,

§761(a)(6)(A)(ii)–(iv), added cl. (iii).

Subsec. (d)(5)(E). Pub. L. 103–465, §761(a)(6)(B), added

subpar. (E).

Subsec. (d)(7)(C). Pub. L. 103–465, §761(a)(7)(A), amended heading and text of subpar. (C) generally. Prior to

amendment, text read as follows: ‘‘The rate of interest

used to determine current liability shall be the rate of

interest used under subsection (b)(5) of this section.’’

Subsec. (d)(9) to (11). Pub. L. 103–465, §761(a)(1)(B),

(7)(B)(ii), (8), added pars. (9) to (11).

Subsec. (e)(1). Pub. L. 103–465, §764(a), in introductory

provisions, inserted ‘‘which has a funded current liability percentage (as defined in subsection (d)(8) of this

section) for the preceding plan year of less than 100 percent’’ before ‘‘fails to pay’’ and substituted ‘‘the plan

year’’ for ‘‘any plan year’’.

Subsec. (e)(4)(D)(ii). Pub. L. 103–465, §761(a)(6)(C)(i),

substituted ‘‘greatest of’’ for ‘‘greater of’’ in introductory provisions.

Subsec. (e)(4)(D)(ii)(III). Pub. L. 103–465,

§761(a)(6)(C)(ii)–(iv), added subcl. (III).

Subsec. (e)(5), (6). Pub. L. 103–465, §761(a)(9)(A), added

par. (5) and redesignated former par. (5) as (6).

Subsec. (f)(1). Pub. L. 103–465, §768(b)(1), substituted

‘‘covered under section 4021 of this title’’ for ‘‘to which

this section applies’’ in introductory provisions.

Subsec. (f)(3). Pub. L. 103–465, §768(b)(2), amended

heading and text of par. (3) 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. (f)(4)(B). Pub. L. 103–465, §768(b)(3), struck out

‘‘60th day following the’’ before ‘‘due date’’.

1990—Subsecs. (g), (h). Pub. L. 101–508 added subsec.

(g) and redesignated former subsec. (g) as (h).

1989—Subsec. (b)(3)(B)(iii). Pub. L. 101–239, §7894(d)(2),

substituted comma for period at end.

Subsec. (b)(5). Pub. L. 101–239, §7881(d)(2)(B), struck

out introductory provision which read as follows: ‘‘For

purposes of determining a plan’s current liability and

for purposes of determining a plan’s required contribution under section 412(l) of title 26 for any plan year—

’’.

Subsec. (b)(5)(B). Pub. L. 101–239, §7881(d)(2)(A), inserted introductory provision ‘‘For purposes of determining a plan’s current liability and for purposes of determining a plan’s required contribution under subsection (d) of this section for any plan year—’’.

Subsec. (b)(5)(B)(ii)(I). Pub. L. 101–239, §7881(d)(2)(C),

substituted ‘‘the weighted average of the rates’’ for

‘‘average rate’’.

Subsec. (b)(5)(B)(iii). Pub. L. 101–239, §7881(d)(1)(B),

struck out ‘‘for purposes of this section and for purposes of determining current liability,’’ before ‘‘the interest rate’’ in introductory provisions.

Subsec. (b)(7)(B), (E). Pub. L. 101–239, §7891(a)(1), substituted ‘‘Internal Revenue Code of 1986’’ for ‘‘Internal

Revenue Code of 1954’’, which for purposes of codification was translated as ‘‘title 26’’ thus requiring no

change in text.

Subsec. (c)(3). Pub. L. 101–239, §7881(d)(4), realigned

margins.

Subsec. (c)(4)(B). Pub. L. 101–239, §7891(a)(1), substituted ‘‘Internal Revenue Code of 1986’’ for ‘‘Internal

Revenue Code of 1954’’, which for purposes of codification was translated as ‘‘title 26’’ thus requiring no

change in text.

Subsec. (c)(6). Pub. L. 101–239, §7894(d)(5), substituted

‘‘section 1085 of this title’’ for ‘‘subsection (g) of this

section’’.

Subsec. (c)(7). Pub. L. 101–239, §7892(b), realigned margins.

Subsec. (c)(9). Pub. L. 101–239, §7881(a)(6)(B), substituted ‘‘every year’’ for ‘‘every 3 years’’.

Subsec. (c)(10)(A). Pub. L. 101–239, §7881(b)(1)(B), inserted ‘‘defined benefit’’ before ‘‘plan other’’.

Subsec. (c)(10)(B). Pub. L. 101–239, §7881(b)(2)(B), substituted ‘‘plan not described in subparagraph (A)’’ for

‘‘multiemployer plan’’.

Subsec. (d)(3)(C)(ii)(II). Pub. L. 101–239, §7881(a)(1)(B),

inserted ‘‘(but not below zero)’’ after ‘‘reducing’’.
Page 421 TITLE 29—LABOR § 1082

Subsec. (d)(4)(B)(i). Pub. L. 101–239, §7881(a)(2)(B), inserted ‘‘and the unamortized portion of the unfunded

existing benefit increase liability’’ after ‘‘liability’’.

Subsec. (d)(5)(C). Pub. L. 101–239, §7881(a)(3)(B), substituted ‘‘the first plan year beginning after December

31, 1988’’ for ‘‘October 17, 1987’’.

Subsec. (d)(7)(D)(iii)(III). Pub. L. 101–239,

§7881(a)(4)(B)(i), added subcl. (III).

Subsec. (d)(7)(D)(iv). Pub. L. 101–239, §7881(a)(4)(B)(ii),

added cl. (iv).

Subsec. (d)(8)(A)(ii). Pub. L. 101–239, §7881(a)(5)(B)(i),

struck out ‘‘reduced by any credit balance in the funding standard account’’ after ‘‘this section’’.

Subsec. (d)(8)(E). Pub. L. 101–239, §7881(a)(5)(B)(ii),

added subpar. (E).

Subsec. (e)(1). Pub. L. 101–239, §7881(b)(3)(B), inserted

‘‘defined benefit’’ before ‘‘plan (other’’.

Subsec. (e)(1)(B). Pub. L. 101–239, §7881(b)(6)(B)(i),

amended subpar. (B) generally. Prior to amendment,

subpar. (B) read as follows: ‘‘the rate under subsection

(b)(5) of this section.’’

Subsec. (e)(4)(D). Pub. L. 101–239, §7881(b)(4)(B),

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 (d)(5)(A)(i) of this section 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 (d)(5)(A)(ii) of this section for the plan

year.’’

1988—Subsec. (d)(3)(C). Pub. L. 100–647, §2005(a)(2)(B),

substituted ‘‘October 29’’ for ‘‘October 17’’ in cl. (i) and

‘‘October 28’’ for ‘‘October 16’’ in cl. (iii).

1987—Subsec. (b)(2)(B)(iv), (C), (3)(B)(ii). Pub. L.

100–203, §9307(a)(2)(A), substituted ‘‘5 plan years (15 plan

years in the case of a multiemployer plan)’’ for ‘‘15 plan

years’’.

Subsec. (b)(2)(B)(v), (3)(B)(iii). Pub. L. 100–203,

§9307(a)(2)(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)(2), 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 of the

Treasury) 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)(2), inserted

at end ‘‘In the case of a plan other than a multiemployer plan, this subparagraph shall not apply, but the

Secretary of the Treasury 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) of this section.’’

Subsec. (c)(3). Pub. L. 100–203, §9307(b)(2), amended

par. (3) generally. Prior to amendment, par. (3) read as

follows: ‘‘For purposes of this part, 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(b), amended par.

(7) generally. Prior to amendment, par. (7) 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)(2), amended

par. (10) generally. Prior to amendment, par. (10) read

as follows: ‘‘For purposes of this part, any contributions for a plan year made by an employer after the

last day of such plan year, but not later than 21

⁄2

months after such day, shall be deemed to have been

made on such last day. For purposes of this paragraph,

such 21

⁄2 month period may be extended for not more

than 6 months under regulations prescribed by the Secretary of the Treasury.’’

Subsec. (c)(11). Pub. L. 100–203, §9305(b)(2), added par.

(11).

Subsec. (d). Pub. L. 100–203, §9303(b)(1), added subsec.

(d). Former subsec. (d) ‘‘Cross reference’’ redesignated

(e).

Subsec. (e). Pub. L. 100–203, §9304(b)(2), added subsec.

(e). Former subsec. (e) ‘‘Cross reference’’ redesignated

(f).

Pub. L. 100–203, §9303(b)(1), redesignated former subsec. (d) as (e).

Subsec. (f). Pub. L. 100–203, §9304(e)(2), added subsec.

(f). Former subsec. (f) ‘‘Cross reference’’ redesignated

(g).

Pub. L. 100–203, §9304(b)(2), redesignated former subsec. (e) as (f).

Subsec. (g). Pub. L. 100–203, §9304(e)(2), redesignated

former subsec. (f) as (g).

1980—Subsec. (a)(3). Pub. L. 96–364, §304(b)(3), added

par. (3).

Subsec. (b)(2). Pub. L. 96–364, §304(b)(1), struck out in

par. (B)(ii) and (iii) ‘‘(40 plan years in the case of a

multiemployer plan)’’ after ‘‘30 plan years’’ and in par.

(B)(iv) ‘‘(20 plan years in the case of a multiemployer

plan)’’ after ‘‘15 plan years’’.

Subsec. (b)(3). Pub. L. 96–364, §304(b)(1), struck out in

par. (B)(i) ‘‘(40 plan years in the case of a multiemployer plan)’’ after ‘‘30 plan years’’ and in par. (B)(ii)

‘‘(20 plan years in the case of a multiemployer plan)’’

after ‘‘15 plan years’’.

Subsec. (b)(6), (7). Pub. L. 96–364, §304(b)(2), added

pars. (6) and (7).

EFFECTIVE DATE OF 1997 AMENDMENT

Amendment by section 1521(b), (c)(2), (3)(B) of Pub. L.

105–34 applicable to plan years beginning after Dec. 31,

1998, see section 1521(d)(1) of Pub. L. 105–34, set out as

a note under section 412 of Title 26, Internal Revenue

Code.

Amendment by section 1604(b)(2)(B) of Pub. L. 105–34

effective as if included in the sections of the Uruguay

Round Agreements Act, Pub. L. 103–465, to which it relates, see section 1604(b)(4) of Pub. L. 105–34, set out as

a note under section 412 of Title 26, Internal Revenue

Code.

EFFECTIVE DATE OF 1994 AMENDMENT

Amendment by section 761(a)(1)–(9)(A), (10) of Pub. L.

103–465 applicable to plan years beginning after Dec. 31,

1994, see section 761(b)(1) of Pub. L. 103–465, set out as

a note under section 1056 of this title.

Section 762(b) of Pub. L. 103–465 provided that:

‘‘(1) IN GENERAL.—The amendment made by this section [amending this section] shall apply to changes in

assumptions for plan years beginning after October 28,

1993.

‘‘(2) CERTAIN CHANGES CEASE TO BE EFFECTIVE.—In the

case of changes in assumptions for plan years beginning

after December 31, 1992, and on or before October 28,

1993, such changes shall cease to be effective for plan

years beginning after December 31, 1994, if—

‘‘(A) such change would have required the approval

of the Secretary of the Treasury had such amendment applied to such change, and

‘‘(B) such change is not so approved.’’
§ 1083 TITLE 29—LABOR Page 422

Section 763(b) of Pub. L. 103–465 provided that: ‘‘The

amendment made by this section [amending this section] shall apply to plan years beginning after December 31, 1994 with respect to collective bargaining agreements in effect on or after January 1, 1995.’’

Section 764(b) of Pub. L. 103–465 provided that: ‘‘The

amendment made by this section [amending this section] shall apply to plan years beginning after the date

of enactment of this Act [Dec. 8, 1994].

Amendment by section 768(b) of Pub. L. 103–465 effective for installments and other payments required

under section 412 of Title 26, Internal Revenue Code, or

under this part, that become due on or after Dec. 8,

1994, see section 768(c) of Pub. L. 103–465, set out as a

note under section 412 of Title 26.

EFFECTIVE DATE OF 1990 AMENDMENT

Amendment by Pub. L. 101–508 applicable to qualified

transfers under section 420 of title 26 made after Nov.

5, 1990, see section 12012(e) of Pub. L. 101–508, set out as

a note under section 1021 of this title.

EFFECTIVE DATE OF 1989 AMENDMENT

Amendment by section 7881(a)(1)(B), (2)(B), (3)(B),

(4)(B), (5)(B), (6)(B), (b)(1)(B), (2)(B), (3)(B), (4)(B),

(6)(B)(i), (d)(1)(B), (2), (4) of 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 Title 26, Internal Revenue Code.

Amendment by section 7891(a)(1) of Pub. L. 101–239 effective, except as otherwise provided, as if included in

the provision of the Tax Reform Act of 1986, Pub. L.

99–514, to which such amendment relates, see section

7891(f) of Pub. L. 101–239, set out as a note under section

1002 of this title.

Amendment by section 7892(b) of Pub. L. 101–239 effective as if included in the provision of the Pension Protection Act, Pub. L. 100–203, §§9302–9346, to which such

amendment relates, see section 7892(c) of Pub. L.

101–239, set out as a note under section 1052 of this title.

Amendment by section 7894(d)(2), (5) of Pub. L. 101–239

effective, except as otherwise provided, as if originally

included in the provision of the Employee Retirement

Income Security Act of 1974, Pub. L. 93–406, to which

such amendment relates, see section 7894(i) of Pub. L.

101–239, set out as a note under section 1002 of this title.

EFFECTIVE DATE OF 1988 AMENDMENT

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,

set out as a note under section 404 of Title 26, Internal

Revenue Code.

EFFECTIVE DATE OF 1987 AMENDMENT

Amendment by section 9301(b) of Pub. L. 100–203 applicable to years beginning after Dec. 31, 1987, see section 9301(c)(1) of Pub. L. 100–203, set out as a note under

section 412 of Title 26, Internal Revenue Code.

Amendment by section 9303(b) of Pub. L. 100–203 applicable with respect to plan years beginning after Dec.

31, 1988, see section 9303(e)(1) of Pub. L. 100–203, set out

as a note under section 412 of Title 26.

Amendment by section 9303(d)(2) of Pub. L. 100–203 applicable with respect to plan years beginning after Dec.

31, 1987, see section 9303(e)(2) of Pub. L. 100–203, set out

as a note under section 412 of Title 26.

Amendment by section 9304(a)(2) of Pub. L. 100–203 applicable to plan years beginning after Dec. 31, 1987, see

section 9304(a)(3) of Pub. L. 100–203, set out as a note

under section 412 of Title 26.

Amendment by section 9304(b)(2) of Pub. L. 100–203 applicable with respect to plan years beginning after 1988,

see section 9304(b)(3) of Pub. L. 100–203, set out as a note

under section 412 of Title 26.

Amendment by section 9304(e)(2) of Pub. L. 100–203 applicable to plan years beginning after Dec. 31, 1987, see

section 9304(e)(3) of Pub. L. 100–203, set out as a note

under section 412 of Title 26.

Amendment by section 9305(b)(2) of Pub. L. 100–203 applicable with respect to plan years beginning after Dec.

31, 1987, see section 9305(d) of Pub. L. 100–203, set out as

a note under section 412 of Title 26.

Amendment by section 9307(a)(2), (b)(2), (e)(2) of Pub.

L. 100–203 applicable to years beginning after Dec. 31,

1987, except that subsec. (b)(2)(B)(iv), (3)(B)(ii) of this

section (as amended by section 9307(a)(2)(A) of Pub. L.

100–203) is applicable to gains and losses established in

years beginning after Dec. 31, 1987, see section 9307(f) of

Pub. L. 100–203, as amended, set out as a note under section 404 of Title 26.

EFFECTIVE DATE OF 1980 AMENDMENT

Amendment by Pub. L. 96–364 effective Sept. 26, 1980,

except as specifically provided, see section 1461(e) of

this title.

REGULATIONS

Secretary authorized, effective Sept. 2, 1974, to promulgate regulations wherever provisions of this subchapter call for the promulgation of regulations, see

section 1031 of this title.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1021, 1023, 1053,

1054, 1055, 1056, 1060, 1083, 1084, 1085, 1085a, 1085b, 1301,

1303, 1306, 1310, 1311, 1342, 1343, 1362, 1371, 1423 of this

title; title 26 section 412.

§ 1083. Variance from minimum funding standard

(a) Waiver of requirements in event of business

hardship

If an employer, or in the case of a multi-employer 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 if application of the standard would be adverse to

the interests of plan participants in the aggregate, the Secretary of the Treasury may waive

the requirements of section 1082(a) of this title

for such year with respect to all or any portion

of the minimum funding standard other than the

portion thereof determined under section

1082(b)(2)(C) of this title. The Secretary of the

Treasury 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. The interest rate used for purposes of computing the amortization charge described in subsection

(b)(2)(C) of this section for any plan year shall

be—

(1) in the case of a plan other than a multiemployer plan, the greater of (A) 150 percent

of the Federal mid-term rate (as in effect

under section 1274 of title 26 for the 1st month

of such plan year), or (B) the rate of interest

used under the plan in determining costs (including adjustments under section 1082(b)(5)(B)

of this title), and

(2) in the case of a multiemployer plan, the

rate determined under section 6621(b) of title

26.

(b) Matters considered in determining business

hardship

For purposes of this part, the factors taken

into account in determining temporary substan-