Source: http://www.law.cornell.edu/uscode/text/26/430?qt-us_code_tabs=2
Timestamp: 2014-07-26 10:11:26
Document Index: 27920198

Matched Legal Cases: ['§ 430', '§ 202', '§ 201', '§ 40211', '§ 4302012112', '§ 4302012112']

26 U.S. Code § 430 - Minimum funding standards for single-employer defined benefit pension plans | LII / Legal Information Institute
Minimum required contribution For purposes of this section and section 412
(a)(2)(A), except as provided in subsection (f), the term “minimum required contribution” means, with respect to any plan year of a defined benefit plan which is not a multiemployer plan—
Special election for eligible plan years (i)
2 plus 7 amortization schedule
Eligible plan year
Increases in required installments in certain cases
the present value (determined using the segment rates determined under subparagraph (C) of subsection (h)(2), applied under rules similar to the rules of subparagraph (B) of subsection (h)(2)) of the aggregate total of the shortfall amortization installments and waiver amortization installments which have been determined for such plan year and any succeeding plan year with respect to the shortfall amortization bases and waiver amortization bases of the plan for any plan year preceding such plan year.
the value of plan assets of the plan (as reduced under subsection (f)(4)(B)) for the plan year which are held by the plan on the valuation date.
Transition rule (i)
Transition relief not available for new or deficit reduction plans
which was not in effect for a plan year beginning in 2007, or
which was in effect for a plan year beginning in 2007 and which was subject to section 412
(l) (as in effect for plan years beginning in 2007) for such year, determined after the application of paragraphs (6) and (9) thereof.
Carryover of excess installment acceleration amounts
Limitation on years to which amounts carried for
Amounts set aside for nonqualified deferred compensation
Only remuneration for certain post-2009 services counted
Exception for certain equity payments
There shall not be taken into account under clause (i)(I) any amount includible in income with respect to the granting after February 28, 2010, of service recipient stock (within the meaning of section 409A) that, upon such grant, is subject to a substantial risk of forfeiture (as defined under section 83
(c)(1)) for at least 5 years from the date of such grant.
Certain payments under existing contracts
Self-employed individual treated as employee
The term “employee” includes, with respect to a calendar year, a self-employed individual who is treated as an employee under section 401
(c) for the taxable year ending during such calendar year, and the term “compensation” shall include earned income of such individual with respect to such self-employment.
(f)(3) for the calendar year, determined by substituting “calendar year 2009” for “calendar year 1992” in subparagraph (B) thereof.
Extraordinary dividends and redemptions (i)
Only certain post-2009 dividends and redemptions counted
Exception for intra-group dividends
Dividends paid by one member of a controlled group (as defined in section 412
(d)(3)) to another member of such group shall not be taken into account under clause (i).
Exception for certain redemptions
Exception for certain preferred stock
Applicable preferred stock
For purposes of subclause (I), the term “applicable preferred stock” means preferred stock which was issued before March 1, 2010 (or which was issued after such date and is held by an employee benefit plan subject to the provisions of title I of [1]
Employee Retirement Income Security Act of 1974).
The term “plan sponsor” includes any member of the plan sponsor’s controlled group (as defined in section 412
Elections for multiple plans
Waiver amortization base The waiver amortization base of a plan for a plan year is the amount of the waived funding deficiency (if any) for such plan year under section 412
Funding standard carryover balance (i)
Plans maintaining funding standard account in 2007
had a positive balance in the funding standard account under section 412
(b) as in effect for such plan year and determined as of the end of such plan year.
In general Except as provided in subparagraphs (B) and (C), in the case of any plan year in which the plan sponsor elects to credit against the minimum required contribution for the current plan year all or a portion of the prefunding balance or the funding standard carryover balance for the current plan year (not in excess of such minimum required contribution), the minimum required contribution for the plan year shall be reduced as of the first day of the plan year by the amount so credited by the plan sponsor. For purposes of the preceding sentence, the minimum required contribution shall be determined after taking into account any waiver under section 412
Special rule for certain years of plans maintained by charities (i)
Limitation to charities
This subparagraph shall not apply to any plan unless such plan is maintained exclusively by one or more organizations described in section 501
Determination of excess assets, funding shortfall, and funding target attainment percentage (i)
Special rule for certain binding agreements with PBGC
Increases (i)
Adjustments for interest
Certain contributions necessary to avoid benefit limitations disregarded
Plans not in existence in preceding year
in the case of benefits reasonably determined to be payable during the 5-year period beginning on the first day of the plan year, the first segment rate with respect to the applicable month,
First segment rate
Second segment rate
Third segment rate
Segment rate stabilization
Applicable minimum percentage; applicable maximum percentage
If the calendar year is: The applicable minimum percentage is: The applicable maximum percentage is: 2012
Election to use yield curve
Publication requirements The Secretary shall publish for each month the corporate bond yield curve (and the corporate bond yield curve reflecting the modification described in section 417
(e)(3)(D)(i) for such month) and each of the rates determined under subparagraph (C) and the averages determined under subparagraph (C)(iv) for such month. The Secretary shall also publish a description of the methodology used to determine such yield curve and such rates which is sufficiently detailed to enable plans to make reasonable projections regarding the yield curve and such rates for future months based on the plan’s projection of future interest rates.
the product of such rate for such month determined without regard to this subparagraph, multiplied by the applicable percentage, and
the product of the rate determined under the rules of section 412
(b)(5)(B)(ii)(II) (as in effect for plan years beginning in 2007), multiplied by a percentage equal to 100 percent minus the applicable percentage.
New plans ineligible
Substitute mortality table (i)
Early termination of period
All plans in controlled group must use separate table
Deadline for submission and disposition of application
Special rule for disabilities occurring after 1994
the probability that future benefit payments under the plan will be made in the form of optional forms of benefits provided under the plan (including lump sum distributions, determined on the basis of the plan’s experience and other related assumptions), and
the aggregate unfunded vested benefits as of the close of the preceding plan year (as determined under section 4006(a)(3)(E)(iii) of the Employee Retirement Income Security Act of 1974) of such plan and all other plans maintained by the contributing sponsors (as defined in section 4001(a)(13) of such Act) and members of such sponsors’ controlled groups (as defined in section 4001(a)(14) of such Act) which are covered by title IV (disregarding plans with no unfunded vested benefits) exceed $50,000,000, and
All employees shall be assumed to elect the retirement benefit available under the plan at the assumed retirement age (determined after application of clause (i)) which would result in the highest present value of benefits.
Special rule for employees offered early retirement in 2006 (i)
Specified automobile manufacturer
If the consecutive number of
The transi-
years (including the plan year)
tion percent-
the plan is in at-risk status is—
age is—
Period of underpayment
Order of crediting contributions
Time for payment of installments
100 percent of the minimum required contribution (determined without regard to this subsection or to any waiver under section 412
(c)) to the plan for the preceding plan year.
Fiscal years, short years, and years with alternate valuation date (i)
Plan with alternate valuation date
the value (as of such last day) of the plan’s liquid assets.
Disbursements from the plan
Adjusted disbursements
the plan’s funding target attainment percentage for the plan year, and
(b), title II, § 202(b),Dec. 23, 2008, 122 Stat. 5095, 5113, 5118; Pub. L. 111–192, title II, §§ 201(b), 204(b),June 25, 2010, 124 Stat. 1290, 1301; Pub. L. 112–141, div. D, title II, § 40211(a)(1), (2)(B),July 6, 2012, 126 Stat. 846, 847.)
26 USCDescription of ChangeSession YearPublic LawStatutes at Large § 4302012112-141 [Sec.] 40211(a)(2)(B)126 Stat. 847 § 4302012112-141 [Sec.] 40211(a)(1)126 Stat. 846 LII has no control over and does not endorse any external Internet site that contains links to or references LII.