Source: https://www.law.cornell.edu/uscode/text/26/436?quicktabs_8=3
Timestamp: 2016-05-01 01:47:09
Document Index: 626429102

Matched Legal Cases: ['§\u202f113', '§\u202f101', '§\u202f203', '§\u202f202', '§\u202f2003', '§\u202f221', '§\u202f2003', '§\u202f221', '§\u202f221', '§\u202f221', '§\u202f101', '§\u202f101', '§\u202f101', '§\u202f101', '§\u202f101', '§\u202f101', '§\u202f101', '§\u202f101', '§\u202f2003', '§\u202f203', '§\u202f113', '§\u202f101', '§\u202f2003', '§\u202f203', '§\u202f203']

Funding-based limits on benefits and benefit accruals under single-employer plans
(1) In generalIf a participant of a defined benefit plan which is a single-employer plan is entitled to an unpredictable contingent event benefit payable with respect to any event occurring during any plan year, the plan shall provide that such benefit may not be provided if the adjusted funding target attainment percentage for such plan year—
(2) ExemptionParagraph (1) shall cease to apply with respect to any plan year, effective as of the first day of the plan year, upon payment by the plan sponsor of a contribution (in addition to any minimum required contribution under section 430) equal to—
(3) Unpredictable contingent event benefitFor purposes of this subsection, the term “unpredictable contingent event benefit” means any benefit payable solely by reason of—
(1) In generalNo amendment to a defined benefit plan which is a single-employer plan which has the effect of increasing liabilities of the plan by reason of increases in benefits, establishment of new benefits, changing the rate of benefit accrual, or changing the rate at which benefits become nonforfeitable may take effect during any plan year if the adjusted funding target attainment percentage for such plan year is—
(2) ExemptionParagraph (1) shall cease to apply with respect to any plan year, effective as of the first day of the plan year (or if later, the effective date of the amendment), upon payment by the plan sponsor of a contribution (in addition to any minimum required contribution under section 430) equal to—
(A) In generalA defined benefit plan which is a single-employer plan shall provide that, in any case in which the plan’s adjusted funding target attainment percentage for a plan year is 60 percent or greater but less than 80 percent, the plan may not pay any prohibited payment after the valuation date for the plan year to the extent the amount of the payment exceeds the lesser of—
(5) Prohibited paymentFor purpose of this subsection, the term “prohibited payment” means—
(B) Form of securityThe security required under subparagraph (A) shall consist of—
(C) EnforcementAny security provided under subparagraph (A) may be perfected and enforced at any time after the earlier of—
(3) Presumption of underfunding after 4th month for nearly underfunded plansIn any case in which—
(i) Treatment of plan as of close of prohibited or cessation periodFor purposes of applying this title—
(j) Terms relating to funding target attainment percentageFor purposes of this section—
(Added Pub. L. 109–280, title I, § 113(a)(1)(B), Aug. 17, 2006, 120 Stat. 847; amended Pub. L. 110–458, title I, § 101(c)(2), Dec. 23, 2008, 122 Stat. 5097; Pub. L. 111–192, title II, § 203(a)(2), June 25, 2010, 124 Stat. 1300; Pub. L. 113–97, title II, § 202(c)(3)(B), Apr. 7, 2014, 128 Stat. 1136; Pub. L. 113–159, title II, § 2003(c)(1), Aug. 8, 2014, 128 Stat. 1850; Pub. L. 113–295, div. A, title II, § 221(a)(57)(E)(i), (F)(i), (G)(i), Dec. 19, 2014, 128 Stat. 4046.)
2014—Subsec. (a). Pub. L. 113–97 substituted “single-employer plan (other than a CSEC plan)” for “single-employer plan”.
Subsec. (d)(2). Pub. L. 113–159, § 2003(c)(1), substituted “of such plan (determined by not taking into account any adjustment of segment rates under section 430(h)(2)(C)(iv))” for “of such plan”.
Subsec. (j)(3). Pub. L. 113–295, § 221(a)(57)(F)(i), struck out par. (3) which related to a special rule for plan years beginning on or after Oct. 1, 2008, and before Oct. 1, 2010.
Pub. L. 113–295, § 221(a)(57)(E)(i), in par. (3) relating to application to plans which are fully funded without regard to reductions for funding balances, struck out subpar. (A) designation and heading and struck out subpars. (B) and (C) which related to a transition rule for plan years beginning after 2007 and before 2011 and a limitation for plan years beginning after 2008, respectively.
Subsec. (m). Pub. L. 113–295, § 221(a)(57)(G)(i), struck out subsec. (m). Text read as follows: “For purposes of this section, in the case of plan years beginning in 2008, the funding target attainment percentage for the preceding plan year may be determined using such methods of estimation as the Secretary may provide.”
2010—Subsec. (j)(3). Pub. L. 111–192 added par. (3) relating to a special rule for plan years beginning on or after Oct. 1, 2008, and before Oct. 1, 2010.
2008—Subsec. (b)(2). Pub. L. 110–458, § 101(c)(2)(A), substituted “section 430” for “section 303” in introductory provisions and “an adjusted funding” for “a funding” in subpar. (B).
Subsec. (b)(3). Pub. L. 110–458, § 101(c)(2)(B), inserted “benefit” after “event” in heading and substituted “an event” for “any event” in subpar. (B).
Subsec. (d)(5). Pub. L. 110–458, § 101(c)(2)(C), inserted concluding provisions.
Subsec. (f)(1)(D). Pub. L. 110–458, § 101(c)(2)(D)(i), inserted “adjusted” before “funding”.
Subsec. (f)(2). Pub. L. 110–458, § 101(c)(2)(D)(ii), substituted “prefunding balance or funding standard carryover balance under section 430(f)” for “prefunding balance under section 430(f) or funding standard carryover balance”.
Subsec. (j)(3)(A). Pub. L. 110–458, § 101(c)(2)(E)(i), struck out “without regard to this paragraph and” before “without regard to the reduction” and substituted “section 430(f)(4)” for “section 430(f)(4)(A)” and “paragraphs (1) and (2)” for “paragraph (1)”.
Subsec. (j)(3)(C). Pub. L. 110–458, § 101(c)(2)(E)(ii), substituted “without regard to the reduction in the value of assets under section 430(f)(4)” for “without regard to this paragraph” and inserted “beginning” before “after” in two places.
Subsecs. (k) to (m). Pub. L. 110–458, § 101(c)(2)(F), added subsecs. (k) and (l) and redesignated former subsec. (k) as (m).
Pub. L. 113–159, title II, § 2003(c)(3), Aug. 8, 2014, 128 Stat. 1850, provided that:
Except as provided in subparagraph (B), the amendments made by this subsection [amending this section and section 1056 of Title 29, Labor] shall apply to plan years beginning after December 31, 2014.
“(B)Collectively bargained plans.—
In the case of a plan maintained pursuant to 1 or more collective bargaining agreements, the amendments made by this subsection shall apply to plan years beginning after December 31, 2015.”
Pub. L. 111–192, title II, § 203(c), June 25, 2010, 124 Stat. 1300, provided that:
Except as provided in paragraph (2), the amendments made by this section [amending this section and section 1056 of Title 29, Labor] shall apply to plan years beginning on or after October 1, 2008.
In the case of a plan for which the valuation date is not the first day of the plan year, the amendments made by this section shall apply to plan years beginning after December 31, 2007.”
Pub. L. 109–280, title I, § 113(b), Aug. 17, 2006, 120 Stat. 852, as amended by Pub. L. 110–458, title I, § 101(c)(3), Dec. 23, 2008, 122 Stat. 5098, provided that:
The amendments made by this section [enacting this subpart] shall apply to plan years beginning after December 31, 2007.
the first day of the first plan year to which the amendments made by this section [enacting this subpart] would (but for this paragraph) apply, or
Pub. L. 113–159, title II, § 2003(c)(4), Aug. 8, 2014, 128 Stat. 1850, provided that:
“(i)In general.—This paragraph shall apply to any amendment to any plan or annuity contract which is made—
pursuant to the amendments made by this subsection [amending this section and section 1056 of Title 29, Labor], or pursuant to any regulation issued by the Secretary of the Treasury or the Secretary of Labor under any provision as so amended, and
“(ii)Conditions.—This subsection [amending this section and section 1056 of Title 29, Labor, and enacting provisions set out as a note under this section] shall not apply to any amendment unless, during the period—
“(C)Anti-cutback relief.—
A plan shall not be treated as failing to meet the requirements of section 204(g) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1054(g)) and section 411(d)(6) of the Internal Revenue Code of 1986 [26 U.S.C. 411(d)(6)] solely by reason of a plan amendment to which this paragraph applies.”
Pub. L. 111–192, title II, § 203(b), June 25, 2010, 124 Stat. 1300, provided that: “Section 203 of the Worker, Retiree, and Employer Recovery Act of 2008 [Pub. L. 110–458, set out below] shall apply to a plan for any plan year in lieu of the amendments made by this section applying to sections 206(g)(4) of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1056(g)(4)] and 436(e) of the Internal Revenue Code of 1986 only to the extent that such section produces a higher adjusted funding target attainment percentage for such plan for such year.”
Pub. L. 110–458, title II, § 203, Dec. 23, 2008, 122 Stat. 5118, provided that: “In the case of the first plan year beginning during the period beginning on October 1, 2008, and ending on September 30, 2009, sections 206(g)(4)(A) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1056(g)(4)(A)) and 436(e)(1) of the Internal Revenue Code of 1986 shall be applied by substituting the plan’s adjusted funding target attainment percentage for the preceding plan year for such percentage for such plan year but only if the adjusted funding target attainment percentage for the preceding plan year is greater.”