§ 1084 TITLE 29—LABOR Page 424

benefits which are guaranteed under subchapter III of

this chapter and the benefit liabilities.’’ for ‘‘plan.’’

Subsec. (f). Pub. L. 100–203, §9306(a)(2)(A), redesignated former subsec. (d) as (f).

1986—Pub. L. 99–272, §11015(b)(1)(A), inserted provision

that the interest rate used for purposes of computing

the amortization charge described in section

1082(b)(2)(C) of this title for a variance granted under

this subsection be the rate determined under section

6621(b) of title 26.

Subsec. (e). Pub. L. 99–272, §11016(c)(2), added subsec.

(e).

EFFECTIVE DATE OF 1989 AMENDMENT

Amendment by section 7881(b)(6)(B)(ii), (7), (8), (c)(2)

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.

EFFECTIVE DATE OF 1987 AMENDMENT

Amendment by Pub. L. 100–203 applicable in the case

of any application submitted after Dec. 17, 1987, and

any waiver granted pursuant to such an application,

except that the amendment by section 9306(a)(2)(A) of

Pub. L. 100–203 applicable to plan years beginning after

Dec. 31, 1987, amendment by section 9306(b)(2) of Pub. L.

100–203 applicable to waivers for plan years beginning

after Dec. 31, 1987, and amendment by section 9306(d)(2)

of Pub. L. 100–203 applicable to applications submitted

more than 90 days after Dec. 22, 1987, with certain exceptions and transitional rules, see section 9306(f) of

Pub. L. 100–203, as amended, set out as a note under section 412 of Title 26, Internal Revenue Code.

EFFECTIVE DATE OF 1986 AMENDMENT

Amendment by Pub. L. 99–272 effective Jan. 1, 1986,

with certain exceptions, see section 11019 of Pub. L.

99–272, set out as a note under section 1341 of this title.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1021, 1057, 1082,

1084, 1085a, 1143, 1362, 1423 of this title; title 26 section

412.

§ 1084. Extension of amortization periods

(a) Determinations by Secretary in granting extension

The period of years required to amortize any

unfunded liability (described in any clause of

subsection (b)(2)(B) of section 1082 of this title)

of any plan may be extended by the Secretary

for a period of time (not in excess of 10 years) if

he determines that such extension would carry

out the purposes of this chapter and would provide adequate protection for participants under

the plan and their beneficiaries and if he determines that the failure to permit such extension

would—

(1) result in—

(A) a substantial risk to the voluntary

continuation of the plan, or

(B) a substantial curtailment of pension

benefit levels or employee compensation,

and

(2) be adverse to the interests of plan participants in the aggregate.

In the case of a plan other than a multiemployer

plan, the interest rate applicable for any plan

year under any arrangement entered into by the

Secretary in connection with an extension

granted under this subsection shall be the greater of (A) 150 percent of the Federal mid-term

rate (as in effect under section 1274 of title 26 for

the 1st month of such plan year), or (B) the rate

of interest used under the plan in determining

costs. In the case of a multiemployer plan, such

rate shall be the rate determined under section

6621(b) of title 26.

(b) Amendment of plan

(1) No amendment of the plan which increases

the liabilities of the plan by reason of any increase in benefits, any change in the accrual of

benefits, or any change in the rate at which benefits become nonforfeitable under the plan shall

be adopted if a waiver under section 1083(a) of

this title or an extension of time under subsection (a) of this section is in effect with respect to the plan, or if a plan amendment described in section 1082(c)(8) of this title has been

made at any time in the preceding 12 months (24

months in the case of a multiemployer plan). If

a plan is amended in violation of the preceding

sentence, any such waiver, or extension of time,

shall not apply to any plan year ending on or

after the date on which such amendment is

adopted.

(2) Paragraph (1) shall not apply to any plan

amendment which—

(A) the Secretary determines to be reasonable and which provides for only de minimis

increases in the liabilities of the plan,

(B) only repeals an amendment described in

section 1082(c)(8) of this title, or

(C) is required as a condition of qualification

under part I of subchapter D, of chapter 1, of

title 26.

(c) Notice of filing of application for extension

(1) The Secretary of the Treasury shall, before

granting an extension under this section, require each applicant to provide evidence satisfactory to such Secretary that the applicant has

provided notice of the filing of the application

for such extension to each employee organization representing employees covered by the affected plan.

(2) The Secretary of the Treasury shall consider any relevant information provided by a

person to whom notice was given under paragraph (1).

(Pub. L. 93–406, title I, §304, Sept. 2, 1974, 88 Stat.

873; Pub. L. 99–272, title XI, §§11015(b)(1)(B),

11016(c)(3), Apr. 7, 1986, 100 Stat. 267, 273; Pub. L.

100–203, title IX, §9306(c)(2)(B), Dec. 22, 1987, 101

Stat. 1330–355; Pub. L. 101–239, title VII,

§§7891(a)(1), 7894(d)(3), Dec. 19, 1989, 103 Stat.

2445, 2449.)

REFERENCES IN TEXT

This chapter, referred to in subsec. (a), 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.
Page 425 TITLE 29—LABOR § 1085a

AMENDMENTS

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

substituted a comma for period at end.

Subsec. (b)(2)(C). 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.

1987—Subsec. (a). Pub. L. 100–203 amended last sentence generally. Prior to amendment, last sentence

read as follows: ‘‘The interest rate applicable under any

arrangement entered into by the Secretary in connection with an extension granted under this subsection

shall be the rate determined under section 6621(b) of

title 26.’’

1986—Subsec. (a). Pub. L. 99–272, §11015(b)(1)(B), inserted provision that the interest rate applicable under

any arrangement entered into by the Secretary in connection with an extension granted under this subsection be the rate determined under section 6621(b) of

title 26.

Subsec. (c). Pub. L. 99–272, §11016(c)(3), added subsec.

(c).

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.

Amendment by section 7894(d)(3) 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 1987 AMENDMENT

Amendment by Pub. L. 100–203 applicable in the case

of any application submitted after Dec. 17, 1987, and

any waiver granted pursuant to such an application,

see section 9306(f) of Pub. L. 100–203, set out as a note

under section 412 of Title 26, Internal Revenue Code.

EFFECTIVE DATE OF 1986 AMENDMENT

Amendment by Pub. L. 99–272 effective Jan. 1, 1986,

with certain exceptions, see section 11019 of Pub. L.

99–272, set out as a note under section 1341 of this title.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1057, 1085a, 1143,

1362 of this title; title 26 section 412.

§ 1085. Alternative minimum funding standard

(a) Maintenance of account

A plan which uses a funding method that requires contributions in all years not less than

those required under the entry age normal funding method may maintain an alternative minimum funding standard account for any plan

year. Such account shall be credited and

charged solely as provided in this section.

(b) Operation of account

For a plan year the alternative minimum

funding standard accounts shall be—

(1) charged with the sum of—

(A) the lesser of normal cost under the

funding method used under the plan or normal cost determined under the unit credit

method,

(B) the excess, if any, of the present value

of accrued benefits under the plan over the

fair market value of the assets, and

(C) an amount equal to the excess, if any,

of credits to the alternative minimum funding standard account for all prior plan years

over charges to such account for all such

years, and

(2) credited with the amount considered contributed by the employer to or under the plan

(within the meaning of section 1082(c)(10) of

this title) for the plan year.

(c) Interest

The alternative minimum funding standard

account (and items therein) shall be charged or

credited with interest in the manner provided

under section 1082(b)(5) of this title with respect

to the funding standard account.

(Pub. L. 93–406, title I, §305, Sept. 2, 1974, 88 Stat.

873.)

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1082 of this title.

§ 1085a. Security for waivers of minimum funding standard and extensions of amortization

period

(a) Security may be required

(1) In general

Except as provided in subsection (c) of this

section, the Secretary of the Treasury may require an employer maintaining a defined benefit plan which is a single-employer plan (within the meaning of section 1301(a)(15) of this

title) to provide security to such plan as a

condition for granting or modifying a waiver

under section 1083 of this title or an extension

under section 1084 of this title.

(2) Special rules

Any security provided under paragraph (1)

may be perfected and enforced only by the

Pension Benefit Guaranty Corporation or, at

the direction of the Corporation, by a contributing sponsor (within the meaning of section

1301(a)(13) of this title) or a member of such

sponsor’s controlled group (within the meaning of section 1301(a)(14) of this title).

(b) Consultation with the Pension Benefit Guaranty Corporation

Except as provided in subsection (c) of this

section, the Secretary of the Treasury shall, before granting or modifying a waiver under section 1083 of this title or an extension under section 1084 of this title with respect to a plan described in subsection (a)(1) of this section—

(1) provide the Pension Benefit Guaranty

Corporation with—

(A) notice of the completed application for

any waiver, extension, or modification, and

(B) an opportunity to comment on such application within 30 days after receipt of such

notice, and

(2) consider—

(A) any comments of the Corporation

under paragraph (1)(B), and

(B) any views of any employee organization representing participants in the plan

which are submitted in writing to the Secretary of the Treasury in connection with

such application.