Source: https://irc.bloombergtax.com/public/uscode/doc/irc/section_432
Timestamp: 2019-10-17 15:34:13
Document Index: 581034740

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Internal Revenue Code, § 432. Additional Funding Rules For Multiemployer Plans In Endangered Status Or Critical Status
I.R.C. § 432(a) General Rule —
I.R.C. § 432(a)(1) —
I.R.C. § 432(a)(1)(A) —
I.R.C. § 432(a)(1)(B) —
I.R.C. § 432(a)(2) —
I.R.C. § 432(a)(2)(A) —
I.R.C. § 432(a)(2)(B) —
I.R.C. § 432(a)(3) —
if the plan is in critical and declining status—
I.R.C. § 432(a)(3)(A) —
I.R.C. § 432(a)(3)(B) —
I.R.C. § 432(b) Determination Of Endangered And Critical Status —
I.R.C. § 432(b)(1) Endangered Status —
A multiemployer plan is in endangered status for a plan year if, as determined by the plan actuary under paragraph (3), the plan is not in critical status for the plan year and is not described in paragraph (5) and, as of the beginning of the plan year, either—
I.R.C. § 432(b)(1)(A) —
the plan's funded percentage for such plan year is less than 80 percent, or
I.R.C. § 432(b)(1)(B) —
the plan has an accumulated funding deficiency for such plan year, or is projected to have such an accumulated funding deficiency for any of the 6 succeeding plan years, taking into account any extension of amortization periods under section 431(d).
I.R.C. § 432(b)(2) Critical Status —
I.R.C. § 432(b)(2)(A) —
I.R.C. § 432(b)(2)(A)(i) —
I.R.C. § 432(b)(2)(A)(ii) —
I.R.C. § 432(b)(2)(A)(ii)(I) —
I.R.C. § 432(b)(2)(A)(ii)(II) —
I.R.C. § 432(b)(2)(B) —
I.R.C. § 432(b)(2)(B)(i) —
the plan has an accumulated funding deficiency for the current plan year, not taking into account any extension of amortization periods under section 431(d), or
I.R.C. § 432(b)(2)(B)(ii) —
the plan is projected to have an accumulated funding deficiency for any of the 3 succeeding plan years (4 succeeding plan years if the funded percentage of the plan is 65 percent or less), not taking into account any extension of amortization periods under section 431(d).
I.R.C. § 432(b)(2)(C) —
I.R.C. § 432(b)(2)(C)(i)
I.R.C. § 432(b)(2)(C)(i)(I) —
the plan's normal cost for the current plan year, plus interest (determined at the rate used for determining costs under the plan) for the current plan year on the amount of unfunded benefit liabilities under the plan as of the last date of the preceding plan year, exceeds
I.R.C. § 432(b)(2)(C)(i)(II) —
I.R.C. § 432(b)(2)(C)(ii) —
I.R.C. § 432(b)(2)(C)(iii) —
the plan has an accumulated funding deficiency for the current plan year, or is projected to have such a deficiency for any of the 4 succeeding plan years, not taking into account any extension of amortization periods under section 431(d).
I.R.C. § 432(b)(2)(D) —
I.R.C. § 432(b)(2)(D)(i) —
I.R.C. § 432(b)(2)(D)(ii) —
I.R.C. § 432(b)(3) Annual Certification By Plan Actuary
I.R.C. § 432(b)(3)(A) In General —
I.R.C. § 432(b)(3)(A)(i) —
whether or not the plan is in endangered status for such plan year, or would be in endangered status for such plan year but for paragraph (5), whether or not the plan is or will be in critical status for such plan year or for any of the succeeding 5 plan years, and whether or not the plan is or will be in critical and declining status for such plan year, and
I.R.C. § 432(b)(3)(A)(ii) —
I.R.C. § 432(b)(3)(B) Actuarial Projections Of Assets And Liabilities
I.R.C. § 432(b)(3)(B)(i) In General —
Except as provided in clause (iv), in making the determinations and projections under this subsection, the plan actuary shall make projections required for the current and succeeding plan years of the current value of the assets of the plan and the present value of all liabilities to participants and beneficiaries under the plan for the current plan year as of the beginning of such year. The actuary's projections shall be based on reasonable actuarial estimates, assumptions, and methods that, except as provided in clause (iii), offer the actuary's best estimate of anticipated experience under the plan. The projected present value of liabilities as of the beginning of such year shall be determined based on the most recent of either—
I.R.C. § 432(b)(3)(B)(i)(I) —
I.R.C. § 432(b)(3)(B)(i)(II) —
I.R.C. § 432(b)(3)(B)(ii) Determinations Of Future Contributions —
I.R.C. § 432(b)(3)(B)(ii)(I) —
I.R.C. § 432(b)(3)(B)(ii)(II) —
I.R.C. § 432(b)(3)(B)(iii) Projected Industry Activity —
I.R.C. § 432(b)(3)(B)(iv) Projections Relating To Critical Status In Succeeding Plan Years —
I.R.C. § 432(b)(3)(B)(v) Projections Of Critical And Declining Status —
In determining whether a plan is in critical and declining status as described in subsection (e)(9), clauses (i), (ii, and (iii) shall apply, except that—
I.R.C. § 432(b)(3)(B)(v)(I) —
I.R.C. § 432(b)(3)(B)(v)(II) —
I.R.C. § 432(b)(3)(C) Penalty For Failure To Secure Timely Actuarial Certification —
I.R.C. § 432(b)(3)(D) Notice
I.R.C. § 432(b)(3)(D)(i) In General —
In any case in which it is certified under subparagraph (A) that a multiemployer plan is or will be in endangered or critical status for a plan year or in which a plan sponsor elects to be in critical status for a plan year under paragraph (4), the plan sponsor shall, not later than 30 days after the date of the certification, provide notification of the endangered or critical status to the participants and beneficiaries, the bargaining parties, the Pension Benefit Guaranty Corporation, and the Secretary of Labor. In any case in which a plan sponsor elects to be in critical status for a plan year under paragraph (4), the plan sponsor shall notify the Secretary of such election not later than 30 days after the date of such certification or such other time as the Secretary may prescribe by regulations or other guidance. In any case in which a plan sponsor elects to be in critical status for a plan year under paragraph (4), the plan sponsor shall notify the Secretary of such election not later than 30 days after the date of such certification or such other time as the Secretary may prescribe by regulations or other guidance.
I.R.C. § 432(b)(3)(D)(ii) Plans In Critical Status —
I.R.C. § 432(b)(3)(D)(ii)(I) —
I.R.C. § 432(b)(3)(D)(ii)(II) —
I.R.C. § 432(b)(3)(D)(iii) —
I.R.C. § 432(b)(3)(D)(iv) Model Notice —
I.R.C. § 432(b)(3)(D)(v) Notice Of Projection To Be In Critical Status In A Future Plan Year —
I.R.C. § 432(b)(4) Election To Be In Critical Status —
Notwithstanding paragraph (2) and subject to paragraph (3)(B)(iv)—
I.R.C. § 432(b)(4)(A) —
I.R.C. § 432(b)(4)(B) —
I.R.C. § 432(b)(4)(C) —
I.R.C. § 432(b)(5) Special Rule —
I.R.C. § 432(b)(5)(A) —
I.R.C. § 432(b)(5)(B) —
I.R.C. § 432(b)(6) Critical And Declining Status —
I.R.C. § 432(c) Funding Improvement Plan Must Be Adopted For Multiemployer Plans In Endangered Status
I.R.C. § 432(c)(1) In General —
I.R.C. § 432(c)(1)(A) —
I.R.C. § 432(c)(1)(B) —
I.R.C. § 432(c)(1)(B)(i) —
I.R.C. § 432(c)(1)(B)(i)(I) —
I.R.C. § 432(c)(1)(B)(i)(II) —
I.R.C. § 432(c)(1)(B)(ii) —
I.R.C. § 432(c)(2) Exception For Years After Process Begins —
I.R.C. § 432(c)(3) Funding Improvement Plan —
I.R.C. § 432(c)(3)(A) In General —
I.R.C. § 432(c)(3)(A)(i) Increase In Plan's Funding Percentage —
The plan's funded percentage as of the close of the funding improvement period equals or exceeds a percentage equal to the sum of—
I.R.C. § 432(c)(3)(A)(i)(I) —
I.R.C. § 432(c)(3)(A)(i)(II) —
I.R.C. § 432(c)(3)(A)(ii) Avoidance Of Accumulated Funding Deficiencies —
I.R.C. § 432(c)(3)(B) Seriously Endangered Plans —
I.R.C. § 432(c)(4) Funding Improvement Period —
I.R.C. § 432(c)(4)(A) In General —
I.R.C. § 432(c)(4)(A)(i) —
I.R.C. § 432(c)(4)(A)(ii) —
I.R.C. § 432(c)(4)(B) Seriously Endangered Plans —
I.R.C. § 432(c)(4)(C) Coordination With Changes In Status
I.R.C. § 432(c)(4)(C)(i) Plans No Longer In Endangered Status —
I.R.C. § 432(c)(4)(C)(ii) Plans In Critical Status —
I.R.C. § 432(c)(4)(D) Plans In Endangered Status At End Of Period —
I.R.C. § 432(c)(5) Special Rules For Seriously Endangered Plans More Than 70 Percent Funded
I.R.C. § 432(c)(5)(A) In General —
I.R.C. § 432(c)(5)(A)(i) —
paragraphs (3)(B) and (4)(B) shall apply only if the plan's actuary certifies, within 30 days after the certification under subsection (b)(3)(A) for the initial determination year, that, based on the terms of the plan and the collective bargaining agreements in effect at the time of such certification, the plan is not projected to meet the requirements of paragraph (3)(A) (without regard to paragraphs (3)(B) and (4)(B)), and
I.R.C. § 432(c)(5)(A)(ii) —
I.R.C. § 432(c)(5)(B) Special Rule After Expiration Of Agreements —
I.R.C. § 432(c)(6) Updates To Funding Improvement Plans And Schedules
I.R.C. § 432(c)(6)(A) Funding Improvement Plan —
I.R.C. § 432(c)(6)(B) Schedules —
I.R.C. § 432(c)(6)(C) Duration Of Schedule —
I.R.C. § 432(c)(7) Imposition Of Schedule Where Failure To Adopt Funding Improvement Plan
I.R.C. § 432(c)(7)(A) Initial Contribution Schedule —
I.R.C. § 432(c)(7)(A)(i) —
I.R.C. § 432(c)(7)(A)(ii) —
I.R.C. § 432(c)(7)(A) Subsequent Contribution Schedule —
after receiving one or more schedules from the plan sponsor under paragraph (6)(B), the bargaining parties with respect to such agreement fail to adopt a contribution schedule with terms consistent with the updated funding improvement plan and a schedule from the plan sponsor,
I.R.C. § 432(c)(7)(C) Date Of Implementation —
I.R.C. § 432(c)(8) Funding Plan Adoption Period —
I.R.C. § 432(d) Rules For Operation Of Plan During Adoption And Improvement Periods
I.R.C. § 432(d)(1) Compliance With Funding Improvement Plan
I.R.C. § 432(d)(1)(A) In General —
I.R.C. § 432(d)(1)(B) Special Rules For Benefit Increases —
I.R.C. § 432(d)(2) Special Rules For Plan Adoption Period —
During the period beginning on the date of the certification under subsection (b)(3)(A) for the initial determination year and ending on the date of the adoption of a funding improvement plan—
I.R.C. § 432(d)(2)(A) —
I.R.C. § 432(d)(2)(A)(i) —
I.R.C. § 432(d)(2)(A)(ii) —
I.R.C. § 432(d)(2)(A)(iii) —
I.R.C. § 432(d)(2)(B) —
I.R.C. § 432(e) Rehabilitation Plan Must Be Adopted For Multiemployer Plans In Critical Status
I.R.C. § 432(e)(1) In General —
I.R.C. § 432(e)(1)(A) —
I.R.C. § 432(e)(1)(B) —
I.R.C. § 432(e)(1)(B)(i) —
I.R.C. § 432(e)(1)(B)(ii) —
I.R.C. § 432(e)(2) Exception For Years After Process Begins —
I.R.C. § 432(e)(3) Rehabilitation Plan —
I.R.C. § 432(e)(3)(A) In General —
I.R.C. § 432(e)(3)(A)(i) —
I.R.C. § 432(e)(3)(A)(ii) —
I.R.C. § 432(e)(3)(B) Updates To Rehabilitation Plan And Schedules
I.R.C. § 432(e)(3)(B)(i) Rehabilitation Plan —
I.R.C. § 432(e)(3)(B)(ii) Schedules —
I.R.C. § 432(e)(3)(B)(iii) Duration Of Schedule —
I.R.C. § 432(e)(3)(C) Imposition Of Schedule Where Failure To Adopt Rehabilitation Plan
I.R.C. § 432(e)(3)(C)(i) Initial Contribution Schedule —
I.R.C. § 432(e)(3)(C)(i)(I) —
I.R.C. § 432(e)(3)(C)(i)(II) —
I.R.C. § 432(e)(3)(C)(ii) Subsequent Contribution Schedule —
I.R.C. § 432(e)(3)(C)(ii)(I) —
I.R.C. § 432(e)(3)(C)(ii)(II) —
I.R.C. § 432(e)(3)(C)(iii) Date Of Implementation —
I.R.C. § 432(e)(4) Rehabilitation Period —
I.R.C. § 432(e)(4)(A) In General —
I.R.C. § 432(e)(4)(A)(i) —
I.R.C. § 432(e)(4)(A)(ii) —
I.R.C. § 432(e)(4)(B) Emergence
I.R.C. § 432(e)(4)(B)(i) In General —
A plan in critical status shall remain in such status until a plan year for which the plan actuary certifies, in accordance with subsection (b)(3)(A), that—
I.R.C. § 432(e)(4)(B)(i)(I) —
the plan is not described in one or more of the subparagraphs in subsection (b)(2) as of the beginning of the plan year,
I.R.C. § 432(e)(4)(B)(i)(II) —
the plan is not projected to have an accumulated funding deficiency for the plan year or any of the 9 succeeding plan years, without regard to the use of the shortfall method but taking into account any extension of amortization periods under section 431(d)(2) or section 412(e) (as in effect prior to the enactment of the Pension Protection Act of 2006), and
I.R.C. § 432(e)(4)(B)(i)(III) —
the plan is not projected to become insolvent within the meaning of section 418E for any of the 30 succeeding plan years.
I.R.C. § 432(e)(4)(B)(ii) Plans With Certain Amortization Extensions
I.R.C. § 432(e)(4)(B)(ii)(I) Special Emergence Rule. —
Notwithstanding clause (i), a plan in critical status that has an automatic extension of amortization periods under section 431(d)(1) shall no longer be in critical status if the plan actuary certifies for a plan year, in accordance with subsection (b)(3)(A), that—
I.R.C. § 432(e)(4)(B)(ii)(I)(aa) —
the plan is not projected to have an accumulated funding deficiency for the plan year or any of the 9 succeeding plan years, without regard to the use of the shortfall method but taking into account any extension of amortization periods under section 431(d)(1), and
I.R.C. § 432(e)(4)(B)(ii)(I)(bb) —
the plan is not projected to become insolvent within the meaning of section 418E for any of the 30 succeeding plan years,
I.R.C. § 432(e)(4)(B)(ii)(II) Reentry Into Critical Status —
A plan that emerges from critical status under subclause (I) shall not reenter critical status for any subsequent plan year unless—
I.R.C. § 432(e)(4)(B)(ii)(II)(aa) —
the plan is projected to have an accumulated funding deficiency for the plan year or any of the 9 succeeding plan years, without regard to the use of the shortfall method but taking into account any extension of amortization periods under section 431(d), or
I.R.C. § 432(e)(4)(B)(ii)(II)(bb) —
the plan is projected to become insolvent within the meaning of section 418E for any of the 30 succeeding plan years.
I.R.C. § 432(e)(5) Rehabilitation Plan Adoption Period —
I.R.C. § 432(e)(6) Limitation On Reduction In Rates Of Future Accruals —
I.R.C. § 432(e)(6)(A) —
a monthly benefit (payable as a single life annuity commencing at the participant's normal retirement age) equal to 1 percent of the contributions required to be made with respect to a participant, or the equivalent standard accrual rate for a participant or group of participants under the collective bargaining agreements in effect as of the first day of the initial critical year, or
I.R.C. § 432(e)(6)(B) —
I.R.C. § 432(e)(7) Automatic Employer Surcharge
I.R.C. § 432(e)(7)(A) Imposition Of Surcharge —
I.R.C. § 432(e)(7)(B) Enforcement Of Surcharge —
I.R.C. § 432(e)(7)(C) Surcharge To Terminate Upon Collective Bargaining Agreement Renegotiation —
I.R.C. § 432(e)(7)(D) Surcharge Not To Apply Until Employer Receives Notice —
I.R.C. § 432(e)(7)(E) Surcharge Not To Generate Increased Benefit Accruals —
I.R.C. § 432(e)(8) Benefit Adjustments
I.R.C. § 432(e)(8)(A) Adjustable Benefits
I.R.C. § 432(e)(8)(A)(i) In General —
I.R.C. § 432(e)(8)(A)(ii) Exception For Retirees —
I.R.C. § 432(e)(8)(A)(iii) Plan Sponsor Flexibility —
I.R.C. § 432(e)(8)(A)(iv) Adjustable Benefit Defined —
I.R.C. § 432(e)(8)(A)(iv)(I) —
I.R.C. § 432(e)(8)(A)(iv)(II) —
any early retirement benefit or retirement-type subsidy (within the meaning of section 411(d)(6)(B)(i)) and any benefit payment option (other than the qualified joint-and survivor annuity), and
I.R.C. § 432(e)(8)(A)(iv)(III) —
I.R.C. § 432(e)(8)(B) Normal Retirement Benefits Protected —
I.R.C. § 432(e)(8)(C) Notice Requirements
I.R.C. § 432(e)(8)(C)(i) In General —
I.R.C. § 432(e)(8)(C)(i)(I) —
I.R.C. § 432(e)(8)(C)(i)(II) —
I.R.C. § 432(e)(8)(C)(i)(III) —
I.R.C. § 432(e)(8)(C)(ii) Content Of Notice —
I.R.C. § 432(e)(8)(C)(ii)(I) —
I.R.C. § 432(e)(8)(C)(ii)(II) —
I.R.C. § 432(e)(8)(C)(iii) Form And Manner —
I.R.C. § 432(e)(8)(C)(iii)(I) —
I.R.C. § 432(e)(8)(C)(iii)(II) —
I.R.C. § 432(e)(8)(C)(iii)(III) —
I.R.C. § 432(e)(9) Benefit Suspensions For Multiemployer Plans In Critical And Declining Status
I.R.C. § 432(e)(9)(A) In General —
I.R.C. § 432(e)(9)(B) Suspension Of Benefits
I.R.C. § 432(e)(9)(B)(i) Suspension Of Benefits Defined —
I.R.C. § 432(e)(9)(B)(ii) Length Of Suspensions —
I.R.C. § 432(e)(9)(B)(iii) No Liability —
I.R.C. § 432(e)(9)(B)(iv) Applicability —
I.R.C. § 432(e)(9)(B)(v) Retiree Representative
I.R.C. § 432(e)(9)(B)(v)(I) In General —
I.R.C. § 432(e)(9)(B)(v)(II) Reasonable Expenses From Plan —
I.R.C. § 432(e)(9)(B)(v)(III) Special Rule Relating To Fiduciary Status —
I.R.C. § 432(e)(9)(C) Conditions For Suspensions —
I.R.C. § 432(e)(9)(C)(i) —
Taking into account the proposed suspensions of benefits (and, if applicable, a proposed partition of the plan under section 4233 of the Employee Retirement Income Security Act of 1974), the plan actuary certifies that the plan is projected to avoid insolvency within the meaning of section 418E, assuming the suspensions of benefits continue until the suspensions of benefits expire by their own terms or if no such expiration date is set, indefinitely.
I.R.C. § 432(e)(9)(C)(ii) —
The plan sponsor determines, in a written record to be maintained throughout the period of the benefit suspension, that the plan is still projected to become insolvent unless benefits are suspended under this paragraph, although all reasonable measures to avoid insolvency have been taken (and continue to be taken during the period of the benefit suspension). In its determination, the plan sponsor may take into account factors including the following:
I.R.C. § 432(e)(9)(C)(ii)(I) —
I.R.C. § 432(e)(9)(C)(ii)(II) —
I.R.C. § 432(e)(9)(C)(ii)(III) —
I.R.C. § 432(e)(9)(C)(ii)(IV) —
I.R.C. § 432(e)(9)(C)(ii)(V) —
I.R.C. § 432(e)(9)(C)(ii)(VI) —
I.R.C. § 432(e)(9)(C)(ii)(VII) —
I.R.C. § 432(e)(9)(C)(ii)(VIII) —
I.R.C. § 432(e)(9)(C)(ii)(IX) —
I.R.C. § 432(e)(9)(C)(ii)(X) —
I.R.C. § 432(e)(9)(D) Limitations On Suspensions —
I.R.C. § 432(e)(9)(D)(i) —
The monthly benefit of any participant or beneficiary may not be reduced below 110 percent of the monthly benefit which is guaranteed by the Pension Benefit Guaranty Corporation under section 4022A of the Employee Retirement Income Security Act of 1974 on the date of the suspension.
I.R.C. § 432(e)(9)(D)(ii)
I.R.C. § 432(e)(9)(D)(ii)(I) —
I.R.C. § 432(e)(9)(D)(ii)(II) —
I.R.C. § 432(e)(9)(D)(ii)(III) —
For purposes of subclause (I), the applicable percentage is a percentage equal to the quotient obtained by dividing—
I.R.C. § 432(e)(9)(D)(ii)(III)(aa) —
I.R.C. § 432(e)(9)(D)(ii)(III)(bb) —
I.R.C. § 432(e)(9)(D)(iii) —
I.R.C. § 432(e)(9)(D)(iv) —
Any suspensions of benefits, in the aggregate (and, if applicable, considered in combination with a partition of the plan under section 4233 of the Employee Retirement Income Security Act of 1974), shall be reasonably estimated to achieve, but not materially exceed, the level that is necessary to avoid insolvency.
I.R.C. § 432(e)(9)(D)(v) —
In any case in which a suspension of benefits with respect to a plan is made in combination with a partition of the plan under section 4233 of the Employee Retirement Income Security Act of 1974, the suspension of benefits may not take effect prior to the effective date of such partition.
I.R.C. § 432(e)(9)(D)(vi) —
Any suspensions of benefits shall be equitably distributed across the participant and beneficiary population, taking into account factors, with respect to participants and beneficiaries and their benefits, that may include one or more of the following:
I.R.C. § 432(e)(9)(D)(vi)(I) —
I.R.C. § 432(e)(9)(D)(vi)(II) —
I.R.C. § 432(e)(9)(D)(vi)(III) —
I.R.C. § 432(e)(9)(D)(vi)(IV) —
I.R.C. § 432(e)(9)(D)(vi)(V) —
I.R.C. § 432(e)(9)(D)(vi)(VI) —
I.R.C. § 432(e)(9)(D)(vi)(VII) —
I.R.C. § 432(e)(9)(D)(vi)(VIII) —
I.R.C. § 432(e)(9)(D)(vi)(IX) —
I.R.C. § 432(e)(9)(D)(vi)(X) —
I.R.C. § 432(e)(9)(D)(vi)(XI) —
I.R.C. § 432(e)(9)(D)(vii) —
In the case of a plan that includes the benefits described in clause (III), benefits suspended under this paragraph shall—
I.R.C. § 432(e)(9)(D)(vii)(I) —
first, be applied to the maximum extent permissible to benefits attributable to a participant's service for an employer which withdrew from the plan and failed to pay (or is delinquent with respect to paying) the full amount of its withdrawal liability under section 4201(b)(1) of the Employee Retirement Income Security Act of 1974 or an agreement with the plan,
I.R.C. § 432(e)(9)(D)(vii)(II) —
I.R.C. § 432(e)(9)(D)(vii)(III) —
third, be applied to benefits under a plan that are directly attributable to a participant's service with any employer which has, prior to the date of enactment of the Multiemployer Pension Reform Act of 2014—
I.R.C. § 432(e)(9)(D)(vii)(III)(aa) —
withdrawn from the plan in a complete withdrawal under section 4203 of the Employee Retirement Income Security Act of 1974 and has paid the full amount of the employer's withdrawal liability under section 4201(b)(1) of such Act or an agreement with the plan, and
I.R.C. § 432(e)(9)(D)(vii)(III)(bb) —
I.R.C. § 432(e)(9)(E) Benefit Improvements
I.R.C. § 432(e)(9)(E)(i) In General —
The plan sponsor may, in its sole discretion, provide benefit improvements while any suspension of benefits under the plan remains in effect, except that the plan sponsor may not increase the liabilities of the plan by reason of any benefit improvement for any participant or beneficiary not in pay status by the first day of the plan year for which the benefit improvement takes effect, unless—
I.R.C. § 432(e)(9)(E)(i)(I) —
I.R.C. § 432(e)(9)(E)(i)(II) —
the plan actuary certifies that after taking into account such benefits improvements the plan is projected to avoid insolvency indefinitely under section 418E.
I.R.C. § 432(e)(9)(E)(ii) Equitable Distribution Of Benefit Improvements
I.R.C. § 432(e)(9)(E)(ii)(I) Limitation —
I.R.C. § 432(e)(9)(E)(ii)(II) Equitable Distribution Of Benefits —
I.R.C. § 432(e)(9)(E)(iii) Special Rule For Resumptions Of Benefits Only For Participants In Pay Status —
I.R.C. § 432(e)(9)(E)(iv) Special Rule For Certain Benefit Increases —
This subparagraph shall not apply to a resumption of suspended benefits or plan amendment which increases liabilities with respect to participants and beneficiaries not in pay status by the first day of the plan year in which the benefit improvements took effect which—
I.R.C. § 432(e)(9)(E)(iv)(I) —
I.R.C. § 432(e)(9)(E)(iv)(II) —
is required as a condition of qualification under part I of subchapter D of chapter 1 of subtitle A or to comply with other applicable law, as determined by the Secretary of the Treasury.
I.R.C. § 432(e)(9)(E)(v) Additional Limitations —
I.R.C. § 432(e)(9)(E)(vi) Definition Of Benefit Improvement —
I.R.C. § 432(e)(9)(F) Notice Requirements
I.R.C. § 432(e)(9)(F)(i) In General —
No suspension of benefits may be made pursuant to this paragraph unless notice of such proposed suspension has been given by the plan sponsor concurrently with an application for approval of such suspension submitted under subparagraph (G) to the Secretary of the Treasury to—
I.R.C. § 432(e)(9)(F)(i)(I) —
such plan participants and beneficiaries who may be contacted by reasonable efforts,
I.R.C. § 432(e)(9)(F)(i)(II) —
I.R.C. § 432(e)(9)(F)(i)(III) —
I.R.C. § 432(e)(9)(F)(ii) Content Of Notice —
I.R.C. § 432(e)(9)(F)(ii)(I) —
I.R.C. § 432(e)(9)(F)(ii)(II) —
I.R.C. § 432(e)(9)(F)(ii)(III) —
I.R.C. § 432(e)(9)(F)(ii)(IV) —
information as to the rights and remedies of plan participants and beneficiaries,
I.R.C. § 432(e)(9)(F)(ii)(V) —
I.R.C. § 432(e)(9)(F)(ii)(VI) —
I.R.C. § 432(e)(9)(F)(iii) Form And Manner —
I.R.C. § 432(e)(9)(F)(iii)(I) —
I.R.C. § 432(e)(9)(F)(iii)(II) —
I.R.C. § 432(e)(9)(F)(iii)(III) —
I.R.C. § 432(e)(9)(F)(iv) Other Notice Requirement —
I.R.C. § 432(e)(9)(F)(v) Model Notice —
I.R.C. § 432(e)(9)(G) Approval Process By The Secretary Of The Treasury In Consultation With The Pension Benefit Guaranty Corporation And The Secretary Of Labor
I.R.C. § 432(e)(9)(G)(i) In General —
I.R.C. § 432(e)(9)(G)(ii) Solicitation Of Comments —
I.R.C. § 432(e)(9)(G)(iii) Required Action; Deemed Approval —
I.R.C. § 432(e)(9)(G)(iv) Agency Review —
I.R.C. § 432(e)(9)(G)(v) Standard For Accepting Plan Sponsor Determinations —
I.R.C. § 432(e)(9)(H) Participant Ratification Process
I.R.C. § 432(e)(9)(H)(i) In General —
I.R.C. § 432(e)(9)(H)(ii) Administration Of Vote —
I.R.C. § 432(e)(9)(H)(iii) Ballots —
I.R.C. § 432(e)(9)(H)(iii)(I) —
I.R.C. § 432(e)(9)(H)(iii)(II) —
I.R.C. § 432(e)(9)(H)(iii)(III) —
I.R.C. § 432(e)(9)(H)(iii)(IV) —
I.R.C. § 432(e)(9)(H)(iii)(V) —
I.R.C. § 432(e)(9)(H)(iii)(VI) —
I.R.C. § 432(e)(9)(H)(iv) Communication By Plan Sponsor —
I.R.C. § 432(e)(9)(H)(v) Systemically Important Plans
I.R.C. § 432(e)(9)(H)(v)(I) In General —
Not later than 14 days after a vote under this subparagraph rejecting a suspension, the Secretary of the Treasury, in consultation with the Pension Benefit Guaranty Corporation and the Secretary of Labor, shall determine whether the plan is a systemically important plan. If the Secretary of the Treasury, in consultation with the Pension Benefit Guaranty Corporation and the Secretary of Labor, determines that the plan is a systemically important plan, not later than the end of the 90-day period beginning on the date the results of the vote are certified, the Secretary of the Treasury shall, notwithstanding such adverse vote—
I.R.C. § 432(e)(9)(H)(v)(I)(aa) —
I.R.C. § 432(e)(9)(H)(v)(I)(bb) —
permit the implementation of a modification by the Secretary of the Treasury, in consultation with the Pension Benefit Guaranty Corporation and the Secretary of Labor, of such suspension (so long as the plan is projected to avoid insolvency within the meaning of section 4245 of the Employee Retirement Income Security Act of 1974 under such modification).
I.R.C. § 432(e)(9)(H)(v)(II) Recommendations —
I.R.C. § 432(e)(9)(H)(v)(III) Systemically Important Plan Defined
I.R.C. § 432(e)(9)(H)(v)(III)(aa) In General —
I.R.C. § 432(e)(9)(H)(v)(III)(bb) Indexing —
I.R.C. § 432(e)(9)(H)(vi) Final Authorization To Suspend —
I.R.C. § 432(e)(9)(I) Judicial Review
I.R.C. § 432(e)(9)(I)(i) Denial Of Application —
I.R.C. § 432(e)(9)(I)(ii) Approval Of Suspension Of Benefits
I.R.C. § 432(e)(9)(I)(ii)(I) Timing Of Action —
I.R.C. § 432(e)(9)(I)(ii)(II) Standards Of Review
I.R.C. § 432(e)(9)(I)(ii)(II)(aa) In General —
I.R.C. § 432(e)(9)(I)(ii)(II)(bb) Temporary Injunction —
I.R.C. § 432(e)(9)(I)(iii) Restricted Cause Of Action —
I.R.C. § 432(e)(9)(I)(iv) Limitation On Action To Suspend Benefits —
I.R.C. § 432(e)(9)(J) Special Rule For Emergence From Critical Status —
A plan certified to be in critical and declining status pursuant to projections made under subsection (b)(3) for which a suspension of benefits has been made by the plan sponsor pursuant to this paragraph shall not emerge from critical status under paragraph (4)(B), until such time as—
I.R.C. § 432(e)(9)(J)(i) —
I.R.C. § 432(e)(9)(J)(ii) —
the plan is projected to avoid insolvency under section 418E.
I.R.C. § 432(f) Rules For Operation Of Plan During Adoption And Rehabilitation Period
I.R.C. § 432(f)(1) Compliance With Rehabilitation Plan
I.R.C. § 432(f)(1)(A) In General —
I.R.C. § 432(f)(1)(B) Special Rules For Benefit Increases —
I.R.C. § 432(f)(2) Restriction On Lump Sums And Similar Benefits
I.R.C. § 432(f)(2)(A) In General —
Effective on the date the notice of certification of the plan's critical status for the initial critical year under subsection (b)(3)(D) is sent, and notwithstanding section 411(d)(6), the plan shall not pay—
I.R.C. § 432(f)(2)(A)(i) —
any payment, in excess of the monthly amount paid under a single life annuity (plus any social security supplements described in the last sentence of section 411(a)(9)), to a participant or beneficiary whose annuity starting date (as defined in section 417(f)(2)) occurs after the date such notice is sent,
I.R.C. § 432(f)(2)(A)(ii) —
I.R.C. § 432(f)(2)(A)(iii) —
I.R.C. § 432(f)(2)(B) Exception —
I.R.C. § 432(f)(3) Special Rules For Plan Adoption Period —
During the period beginning on the date of the certification under subsection (b)(3)(A) for the initial critical year and ending on the date of the adoption of a rehabilitation plan—
I.R.C. § 432(f)(3)(A) —
I.R.C. § 432(f)(3)(A)(i) —
I.R.C. § 432(f)(3)(A)(ii) —
I.R.C. § 432(f)(3)(A)(iii) —
I.R.C. § 432(f)(3)(B) —
I.R.C. § 432(g) Adjustments Disregarded In Withdrawal Liability Determination
I.R.C. § 432(g)(1) Benefit Reduction —
I.R.C. § 432(g)(2) Surcharges —
I.R.C. § 432(g)(3) Contribution Increases Required By Funding Improvement Or Rehabilitation Plan
I.R.C. § 432(g)(3)(A) In General —
I.R.C. § 432(g)(3)(B) Special Rules —
I.R.C. § 432(g)(4) Emergence From Endangered Or Critical Status —
I.R.C. § 432(g)(5) Simplified Calculations —
I.R.C. § 432(h) Expedited Resolution Of Plan Sponsor Decisions —
I.R.C. § 432(i) Nonbargained Participation
I.R.C. § 432(i)(1) Both Bargained And Nonbargained Employee-Participants —
I.R.C. § 432(i)(2) Nonbargained Employees Only —
I.R.C. § 432(j) Definitions; Actuarial Method —
I.R.C. § 432(j)(1) Bargaining Party —
I.R.C. § 432(j)(1)(A)
I.R.C. § 432(j)(1)(A)(i) —
I.R.C. § 432(j)(1)(A)(ii) —
in the case of a plan described under section 404(c), or a continuation of such a plan, the association of employers that is the employer settlor of the plan; and
I.R.C. § 432(j)(1)(B) —
I.R.C. § 432(j)(2) Funded Percentage —
I.R.C. § 432(j)(2)(A) —
the numerator of which is the value of the plan's assets, as determined under section 431(c)(2), and
I.R.C. § 432(j)(2)(B) —
the denominator of which is the accrued liability of the plan, determined using actuarial assumptions described in section 431(c)(3).
I.R.C. § 432(j)(3) Accumulated Funding Deficiency —
I.R.C. § 432(j)(4) Active Participant —
I.R.C. § 432(j)(5) Inactive Participant —
I.R.C. § 432(j)(5)(A) —
I.R.C. § 432(j)(5)(B) —
I.R.C. § 432(j)(6) Pay Status —
I.R.C. § 432(j)(6)(A) —
I.R.C. § 432(j)(6)(B) —
I.R.C. § 432(j)(7) Obligation To Contribute —
I.R.C. § 432(j)(8) Actuarial Method —
I.R.C. § 432(j)(9) Plan Sponsor —
I.R.C. § 432(j)(9)(A) In General —
I.R.C. § 432(j)(9)(B) Special Rule For Section 404(c) Plans —
I.R.C. § 432(j)(10) Benefit Commencement Date —
(Added by Pub. L. 109-280, title II, Sec. 212, Aug. 17, 2006; and amended by Pub. L. 110-458, title I, Sec. 102(b)(2), Dec. 23, 2008, 122 Stat. 5092; Pub. L. 113-235, Div. O, title I, Sec. 102(b), 103(b), 104(b), 105(b), 106(b), 107(b), 109(b), title II, Sec. 201(b), Dec. 16, 2014; Pub. L. 115-141, Div. U, title IV, Sec. 401(a)(102)-(107), Mar. 23, 2018, 132 Stat. 348.)
Subsec. (b)(3)(A)(i). Pub. L. 115-141, Div. U, Sec. 401(a)(102), amended clause (i) by substituting ‘‘in endangered status for such plan year, or would be in endangered status for such plan year but for paragraph (5), whether or not’’ for ‘‘in endangered status for such plan year’’ and all that follows through ‘‘, whether or not’’.
Subsec. (b)(3)(B). Pub. L. 115-141, Div. U, Sec. 401(a)(103), amended subpar. (B) by redesignating the clause (iv) relating to projections of critical and declining status as clause (v).
Subsec. (b)(3)(D)(iv). Pub. L. 115-141, Div. U, Sec. 401(a)(104), amended clause (iv) by inserting a comma after ‘‘Labor’’.
Subsec. (e)(8)(C)(iii). Pub. L. 115-141, Div. U, Sec. 401(a)(105), amended clause (iii) by substituting “The Secretary shall” for “the Secretary shall”.
Subsec. (f)(3). Pub. L. 115-141, Div. U, Sec. 401(a)(106), amended par. (3), as precedes subparagraph (A), to read as follows:
“During the period beginning on the date of the certification under subsection (b)(3)(A) for the initial critical year and ending on the date of the adoption of a rehabilitation plan—’’.
Prior to amendment, subpar. (A) read as follows:
“During the period beginning on the date of the certification under subsection (b)(3)(A) for the initial critical year and ending on the date of the adoption of a rehabilitation plan—“.
Subsec. (g)(1). Pub. L. 115-141, Div. U, Sec. 401(a)(107), amended par (1) by substituting “subsection (e)(9)’’ for subsection (e)(9))’’.
2014 - Subsec. (a)(1)(B). Pub. L. 113-235, Div. O, Sec. 201(b)(1)(A), amended subpar. (B) by striking “and” at the end.
Subsec. (a)(2)(B). Pub. L. 113-235, Div. O, Sec. 201(b)(1)(B), amended subpar. (B) by substituting “, and” for the period at the end.
Subsec. (a)(3). Pub. L. 113-235, Div. O, Sec. 201(b)(1)(C), added par. (3).
Subsec. (b)(1). Pub. L. 113-235, Div. O, Sec. 104(b)(1)(A), amended par. (1) by substituting “the plan is not in critical status for the plan year and is not described in paragraph (5),” for “the plan is not in critical status for the plan year”.
Subsec. (b)(3)(A)(i). Pub. L. 113-235, Div. O, Sec. 102(b)(2)(A), amended clause (i) by substituting “or for any of the succeeding 5 plan years, and” for “, and”.
Subsec. (b)(3)(A)(i). Pub. L. 113-235, Div. O, Sec. 104(b)(3), amended clause (i) by inserting “, or would be in endangered status for such plan year but for paragraph (5),” after “endangered status for a plan year”.
Subsec. (b)(3)(A)(i). Pub. L. 113-235, Div. O, Sec. 201(b)(3), amended clause (i) by substituting “, whether” for “and whether” and by inserting “, and whether or not the plan is or will be in critical and decliing status for such plan year” before “, and” at the end.
Subsec. (b)(3)(B)(i). Pub. L. 113-235, Div. O, Sec. 102(b)(2)(B)(i), amended clause (i) by substituting “Except as provided in clause (iv), in making the determinations” for “In making the determinations”.
Subsec. (b)(3)(B)(iv). Pub. L. 113-235, Div. O, Sec. 102(b)(2)(B)(ii), amended subpar. (B) by adding clause (iv).
Subsec. (b)(3)(B)(iv). Pub. L. 113-235, Div. O, Sec. 201(b)(4), amended subpar. (B) by adding clause (iv).
Subsec. (b)(3)(D)(i). Pub. L. 113-235, Div. O, Sec. 102(b)(3)(A), amended clause (i) by inserting “or in which a plan sponsor elects to be in critical status for a plan year under paragraph (4)” after “for a plan year” and by adding the sentence at the end.
Subsec. (b)(3)(D)(iv). Pub. L. 113-235, Div. O, Sec. 102(b)(3)(B), amended subpar. (D) by adding clause (iv).
Subsec. (b)(3)(D)(iii)-(iv). Pub. L. 113-235, Div. O, Sec. 104(b)(2)(A)-(B), redesignated clause (iii) and (iv) as clause (iv) and (v), respectively, and added a new clause (iii).
Subsec. (b)(3)(D)(iv). Pub. L. 113-235, Div. O, Sec. 104(b)(2)(C), amended clause (iv), as redesignated, by inserting “clauses (ii) and (iii)” for “clause (ii)”.
Subsec. (b)(4). Pub. L. 113-235, Div. O, Sec. 102(b)(1), added par. (4).
Subsec. (b)(5). Pub. L. 113-235, Div. O, Sec. 104(b)(1)(B), added par. (5).
Subsec. (b)(6). Pub. L. 113-235, Div. O, Sec. 201(b)(2), added par. (6).
Subsec. (c)(3)(A)(i)(I). Pub. L. 113-235, Div. O, Sec. 105(b)(1), amended subclause (I) by substituting “of the first plan year for which the plan is certified to be in endangered status pursuant to paragraph (b)(3)” for “of such period”.
Subsec. (c)(3)(A)(ii). Pub. L. 113-235, Div. O, Sec. 105(b)(2), amended clause (ii) by substituting “the last plan year” for “any plan year”.
Subsec. (c)(7). Pub. L. 113-235, Div. O, Sec. 107(b)(1), amended par. (7). Before being amended, it read as follows:
“(7) Imposition Of Default Schedule Where Failure To Adopt Funding Improvement Plan
“(i) a collective bargaining agreement providing for contributions under a multiemployer plan that was in effect at the time the plan entered endangered status expires, and
“(ii) after receiving one or more schedules from the plan sponsor under paragraph (1)(B), the bargaining parties with respect to such agreement fail to adopt a contribution schedule with terms consistent with the funding improvement plan and a schedule from the plan sponsor,
“the plan sponsor shall implement the schedule described in paragraph (1)(B)(i)(I) beginning on the date specified in subparagraph (B).
”(B) Date Of Implementation.—The date specified in this subparagraph is the date which is 180 days after the date on which the collective bargaining agreement described in subparagraph (A) expires.”
Subsec. (d). Pub. L. 113-235, Div. O, Sec. 106(b), amended subsec. (d). Before amendment, it read as follows:
“(d) Special Rules For Plan Adoption Period.—During the funding plan adoption period—
“(A) the plan sponsor may not accept a collective bargaining agreement or participation agreement with respect to the multiemployer plan that provides for—
“(i) a reduction in the level of contributions for any participants,
“(ii) a suspension of contributions with respect to any period of service, or
“(iii) any new direct or indirect exclusion of younger or newly hired employees from plan participation,
“(B) 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 may be adopted unless the amendment is required as a condition of qualification under part I of subchapter D of chapter 1 or to comply with other applicable law, and
“(C) in the case of a plan in seriously endangered status, the plan sponsor shall take all reasonable actions which are consistent with the terms of the plan and applicable law and which are expected, based on reasonable assumptions, to achieve—
“(i) an increase in the plan's funded percentage, and
“(ii) postponement of an accumulated funding deficiency for at least 1 additional plan year.
“Actions under subparagraph (C) include applications for extensions of amortization periods under section 431(d), use of the shortfall funding method in making funding standard account computations, amendments to the plan's benefit structure, reductions in future benefit accruals, and other reasonable actions consistent with the terms of the plan and applicable law.
“(2) Compliance With Funding Improvement Plan
“(A) In General.—A plan may not be amended after the date of the adoption of a funding improvement plan so as to be inconsistent with the funding improvement plan.
“(B) No Reduction In Contributions.—A plan sponsor may not during any funding improvement period accept a collective bargaining agreement or participation agreement with respect to the multiemployer plan that provides for—
“(iii) any new direct or indirect exclusion of younger or newly hired employees from plan participation.
“(C) Special Rules For Benefit Increases.—A plan may not be amended after the date of the adoption of a funding improvement plan so as to increase benefits, including future benefit accruals, unless the plan actuary certifies that the benefit increase is consistent with the funding improvement plan and is paid for out of contributions not required by the funding improvement plan to meet the applicable benchmark in accordance with the schedule contemplated in the funding improvement plan.”
Subsec. (e)(3)(C). Pub. L. 113-235, Div. O, Sec. 107(b)(2), amended subpar. (C). Before amendment, it read as follows:
“(C) Imposition Of Default Schedule Where Failure To Adopt Rehabilitation Plan
“(I) a collective bargaining agreement providing for contributions under a multiemployer plan that was in effect at the time the plan entered critical status expires, and
“(II) after receiving one or more schedules from the plan sponsor under paragraph (1)(B), the bargaining parties with respect to such agreement fail to adopt a contribution schedule with terms consistent with the rehabilitation plan and the schedule from the plan sponsor under paragraph (1)(B)(i),
“the plan sponsor shall implement the default schedule described in the last sentence of paragraph (1) beginning on the date specified in clause (ii).
“(ii) Date Of Implementation.—The date specified in this clause is the date which is 180 days after the date on which the collective bargaining agreement described in clause (i) expires.”
Subsec. (e)(4)(B). Pub. L. 113-235, Div. O, Sec. 103(b), amended subpar. (B). Before amendment, it read as follows:
“(B) Emergence.—A plan in critical status shall remain in such status until a plan year for which the plan actuary certifies, in accordance with subsection (b)(3)(A), that the plan is not projected to have an accumulated funding deficiency for the plan year or any of the 9 succeeding plan years, without regard to the use of the shortfall method but taking into account any extension of amortization periods under section 431(d).”
Subsec. (e)(9). Pub. L. 113-235, Div. O, Sec. 109(b)(1), struck par. (9). Before being struck, it read as follows:
“(9) Adjustments Disregarded In Withdrawal Liability Determination
“(A) Benefit Reductions.—Any benefit reductions under this subsection shall be disregarded in determining a plan's unfunded vested benefits for purposes of determining an employer's withdrawal liability under section 4201 of the Employee Retirement Income Security Act of 1974.
“(B) Surcharges.—Any surcharges under paragraph (7) shall be disregarded in determining the allocation of unfunded vested benefits to an employer under section 4211 of such Act, except for purposes of determining the unfunded vested benefits attributable to an employer under section 4211(c)(4) of such Act or a comparable method approved under section 4211(c)(5) of such Act.
“(C) Simplified Calculations.—The Pension Benefit Guaranty Corporation shall prescribe simplified methods for the application of this paragraph in determining withdrawal liability.”
Subsec. (e)(9). Pub. L. 113-235, Div. O, Sec. 201(b)(5), added a new par. (9).
Subsec. (f)(3)-(4). Pub. L. 113-235, Div. O, Sec. 109(b)(2)(A), struck par. (3) and redesignated par. (4) as par. (3). Before being struck, it read as follows:
“(3) Adjustments Disregarded In Withdrawal Liability Determination.—Any benefit reductions under this subsection shall be disregarded in determining a plan's unfunded vested benefits for purposes of determining an employer's withdrawal liability under section 4201 of the Employee Retirement Income Security Act of 1974.”
Subsec. (f)(3). Pub. L. 113-235, Div. O, Sec. 109(b)(2)(B), amended par. (3), as redesignated, by substituting “During the period beginning on the date of the certification under subsection (b)(3)(A) for the initial critical year and ending on the ate of the adoption of a rehabilitation plan—” for “During the rehabilitation plan adoption period—”.
Subsec. (g)-(j). Pub. L. 113-235, Div. O, Sec. 109(b)(3)-(4), redesignated subsec. (g)-(i) as subsec. (h)-(j), respectively, and added a new subsec. (g).
Subsec. (g)(1). Pub. L. 113-235, Div. O, Sec. 201(b)(6), amended par. (1) by inserting “, or benefit reductions or suspensions while in critical and declining status under subsection (e)(9)), unless the withdrawal occurs more than ten years after the effective date of a benefit suspension by a plan in critical and declining status,” after “benefit reductions under subsection (e)(8) or (f)”.
2008 - Subsec. (b)(3)(C). Pub. L. 110-458, Sec. 102(b)(2)(A), amended subpar. (C) by substituting “section 101(b)(1)” for “section 101(b)(4)”.
Subsec. (b)(3)(D)(iii). Pub. L. 110-458, Sec. 102(b)(2)(B), amended clause (iii) by substituting “The Secretary, in consultation with the Secretary of Labor” for “The Secretary of Labor”.
Subsec. (c)(3)(A)(ii). Pub. L. 110-458, Sec. 102(b)(2)(C)(i), amended clause (ii) by substituting “section 431(d)” for “section 304(d)”.
Subsec. (c)(7)(A). Pub. L. 110-458, Sec. 102(b)(2)(C)(ii)(I), amended subpar. (A) by substituting “to adopt a contribution schedule with terms consistent with the funding improvement plan and a schedule form the plan sponsor,” for “to agree on changes to contribution or benefit schedules necessary to meet the applicable benchmarks in accordance with the funding improvement plan,”.
Subsec. (c)(7)(B). Pub. L. 110-458, Sec. 102(b)(2)(C)(ii)(II), amended subpar. (B). Before amendment, it read as follows:
“(B) Date Of Implementation.— The date specified in this subparagraph is the earlier of the date—
Subsec. (e)(3)(C)(i)(II). Pub. L. 110-458, Sec. 102(b)(2)(D)(i)(I), amended subclause (II) by substituting “to adopt a contribution schedule with terms consistent with the rehabilitation plan and a schedule from the plan sponsor under paragraph (1)(B)(i),” for “to adopt a contribution or benefit schedules with terms consistent with the rehabilitation plan and the schedule from the plan sponsor under paragraph (1)(B)(i)”.
Subsec. (e)(3)(C)(ii). Pub. L. 110-458, Sec. 102(b)(2)(D)(i)(II), amended clause (ii). Before amendment, it read as follows:
“(ii) Date Of Implementation.—The date specified in this clause is the earlier of the date—
Subsec. (e)(4)(A)(ii). Pub. L. 110-458, Sec. 102(b)(2)(D)(ii)(I), amended clause (ii) by striking “the date of”.
Subsec. (e)(4)(B). Pub. L. 110-458, Sec. 102(b)(2)(D)(ii)(II), amended subpar. (B) by substituting “but taking” for “and taking”.
Subsec. (e)(6). Pub. L. 110-458, Sec. 102(b)(2)(D)(iii), amended par. (6) by substituting “the last sentence of paragraph (1)” for “paragraph (1)(B)(i)” and by substituting “establish” for “established”.
Subsec. (e)(8)(A)(i). Pub. L. 110-458, Sec. 102(b)(2)(D)(iv)(I), amended clause (i) by substituting “section 411(d)(6)” for “section 204(g)”.
Subsec. (e)(8)(C)(i)(II). Pub. L. 110-458, Sec. 102(b)(2)(D)(iv)(II), amended subclause (II) by inserting “of the Employee Retirement Income Security Act of 1974” after “4212(a)”.
Subsec. (e)(8)(C)(iii)(I). Pub. L. 110-458, Sec. 102(b)(2)(D)(iv)(III), amended subclause (I) by substituting “the Secretary, in consultation with the Secretary of Labor” for “the Secretary of Labor”.
Subsec. (e)(8)(C)(iii). Pub. L. 110-458, Sec. 102(b)(2)(D)(iv)(IV), amended clause (iii) by substituting “the Secretary” for “the Secretary of Labor” in the last sentence.
Subsec. (e)(9)(B). Pub. L. 110-458, Sec. 102(b)(2)(D)(v), amended subpar. (B) by substituting “the allocation of unfunded vested benefits to an employer” for “an employer's withdrawal liability”.
Subsec. (f)(2)(A)(i). Pub. L. 110-458, Sec. 102(b)(2)(E), amended clause (i) by substituting “section 411(a)(9)” for “section 411(b)(1)(A)” and by inserting “to a participant or beneficiary whose annuity starting date (as defined in section 417(f)(2)) occurs after the date such notice is sent”.
Subsec. (g). Pub. L. 110-458, Sec. 102(b)(2)(F), amended subsec. (g) by inserting “under subsection (c)” after “funding improvement plan” the first place it appears.
Subsec. (i)(3). Pub. L. 110-458, Sec. 102(b)(2)(G)(i), amended par. (3) by inserting “section 431(a)” for “section 412(a)”.
Subsec. (i)(9). Pub. L. 110-458, Sec. 102(b)(2)(G)(ii), amended par. (9). Before amendment, it read as follows:
“(9) Plan Sponsor.— In the case of a plan described under section 404(c), or a continuation of such a plan, the term ‘plan sponsor’ means the bargaining parties described under paragraph (1).”
Amendments by Pub. L. 115-141, Div. U, Sec. 401(a)(102)-(107), effective March 23, 2018.
Amendments by Pub. L. 113-325 , Div. O, Sec. 102, 103, 104, 105, 106, 107, effective for plan years beginning after December 31, 2014.
Amendments by Pub. L. 113-325 , Div. O, Sec. 109, effective for benefit reductions and increases in the contribution rate or other required contribution increases that go into effect during plan years beginning after December 31, 2014 and to surcharges the obligation for which accrue on or after December 31, 2014.
Amendments by Pub. L. 113-325 , Div. O, Sec. 201, effective on the date of the enactment of this Act [Enacted: Dec. 16, 2014].
Amendments by Sec. 102(b)(2) of Pub. L. 110-458 effective as if included in the provisions of the Pension Protection Act of 2006 [Pub. L. 109-280, Sec. 212] to which they relate.
Effective for taxable years beginning after December 31, 2007, but only with respect to plan years beginning after 2007 which end with or within any such taxable year. Sec. 212(e)(2)-(3) of Pub. L. 109-280, as amended by Pub. L. 110-458, Sec. 102(b)(3), provided:
“(2) SPECIAL RULE FOR CERTAIN NOTICES- In any case in which a plan's actuary certifies that it is reasonably expected that a multiemployer plan will be in critical status under section 432(b)(3) of the Internal Revenue Code of 1986, as added by this section, with respect to the first plan year beginning after 2007, the notice required under subparagraph (D) of such section may be provided at any time after the date of enactment, so long as it is provided on or before the last date for providing the notice under such subparagraph.
“(3) SPECIAL RULE FOR CERTAIN RESTORED BENEFITS- In the case of a multiemployer plan—
“(B) which, pursuant to the plan document, the trust agreement, or a formal written communication from the plan sponsor to participants provided before June 30, 2005, provided for the restoration of such benefits, the amendments made by this section shall not apply to such benefit restorations to the extent that any restriction on the providing or accrual of such benefits would otherwise apply by reason of such amendments.”
Section 221(c) of Pub. L. 109-280, before being repealed by Pub. L. 113-235, Div. O, Sec. 101(a) effective with respect to plans years beginning after Dec. 31, 2014, provided that:
“(1) IN GENERAL- Except as provided in this subsection, notwithstanding any other provision of this Act, the provisions of, and the amendments made by, sections 201(b), 202, and 212 shall not apply to plan years beginning after December 31, 2014.
“(2) FUNDING IMPROVEMENT AND REHABILITATION PLANS- If a plan is operating under a funding improvement or rehabilitation plan under section 305 of such Act or 432 of such Code for its last year beginning before January 1, 2015, such plan shall continue to operate under such funding improvement or rehabilitation plan during any period after December 31, 2014, such funding improvement or rehabilitation plan is in effect and all provisions of such Act or Code relating to the operation of such funding improvement or rehabilitation plan shall continue in effect during such period.”
Section 201(b)(7) of Pub. L. 113-235, Div. O, provided that:
“(7) Guidance.—Not later than 180 days after the date of the enactment of this Act [Enacted: Dec. 16, 2014], the Secretary of the Treasury, in consultation with the Pension Benefit Guaranty Corporation and the Secretary of Labor, shall publish appropriate guidance to implement section 432(e)(9) of the Internal Revenue Code of 1986.”s
Sec. 204 of Pub. L. 110-458 provided that:
“ (a) In General.—Notwithstanding the actuarial certification under section 305(b)(3) of the Employee Retirement Income Security Act of 1974 and section 432(b)(3) of the Internal Revenue Code of 1986, if a plan sponsor of a multiemployer plan elects the application of this section, then, for purposes of section 305 of such Act and section 432 of such Code—
“If section 305 of the Employee Retirement Income Security Act of 1974 and section 432 of the Internal Revenue Code of 1986 did not apply to the preceding plan year described in paragraph (1), the plan actuary shall make a certification of the status of the plan under section 305(b)(3) of such Act and section 432(b)(3) of such Code for the preceding plan year in the same manner as if such sections had applied to such preceding plan year.
“(2) such plan has, without regard to such election, been certified by the plan actuary under section 305(b)(3) of such Act and section 432(b)(3) of such Code to be in critical status for the first plan year described in subsection (a)(1),
“then such plan shall be treated as a plan in critical status for such plan year for purposes of applying section 4971(g)(1)(A) of such Code, section 302(b)(3) of such Act (without regard to the second sentence thereof), and section 412(b)(3) of such Code (without regard to the second sentence thereof).
“(A) be made at such time and in such manner as the Secretary of the Treasury or the Secretary's delegate may prescribe and, once made, may be revoked only with the consent of the Secretary, and
“(i) before the date the annual certification is submitted to the Secretary or the Secretary's delegate under section 305(b)(3) of such Act and section 432(b)(3) of such Code, be included with such annual certification, and
“(ii) after such date, be submitted to the Secretary or the Secretary's delegate not later than 30 days after the date of the election.
“(I) if the election is made before the date the annual certification is submitted to the Secretary or the Secretary's delegate under section 305(b)(3) of such Act and section 432(b)(3) of such Code, not later than 30 days after the date of the certification, and
“(B) NOTICE OF ENDANGERED STATUS.—Notwithstanding section 305(b)(3)(D) of such Act and section 431(b)(3)(D) of such Code, if the plan is certified to be in critical status for any plan year but is in endangered status by reason of an election made under subsection (a), the notice provided under such sections shall be the notice which would have been provided if the plan had been certified to be in endangered status.
Sec. 205 of Pub. L. 110-458 provided that:
“(a) In General.—If the plan sponsor of a multiemployer plan which is in endangered or critical status for a plan year beginning in 2008 or 2009 (determined after application of section 204) elects the application of this section, then, for purposes of section 305 of the Employee Retirement Income Security Act of 1974 and section 432 of the Internal Revenue Code of 1986—
“(1) except as provided in paragraph (2), the plan's funding improvement period or rehabilitation period, whichever is applicable, shall be 13 years rather than 10 years, and
“(2) in the case of a plan in seriously endangered status, the plan's funding improvement period shall be 18 years rather than 15 years.
“(1) ELECTION.—An election under this section shall be made at such time, and in such manner and form, as (in consultation with the Secretary of Labor) the Secretary of the Treasury or the Secretary's delegate may prescribe.
“(2) DEFINITIONS.—Any term which is used in this section which is also used in section 305 of the Employee Retirement Income Security Act of 1974 and section 432 of the Internal Revenue Code of 1986 shall have the same meaning as when used in such sections.