Page:United States Statutes at Large Volume 101 Part 2.djvu/1132

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101 STAT. 1330-338
101 STAT. 1330-338
PUBLIC LAW 100-000—MMMM. DD, 1987

101 STAT. 1330-338

PUBLIC LAW 100-203—DEC. 22, 1987

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"(1) IN GENERAL.—In the case of a defined benefit plan (other " than a multiemployer plan) which has an unfunded current liability 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 subparagraphs (B) (other than clauses (iv) and (v) thereof), (C), and (D) of subsection (b)(2), reduced by the sum of the credits for such plan year under subparagraph (B)(i) of subsection (b)(8), plus "(B) the unpredictable contingent event amount (if any) for such plan year. .; Such increase shall not exceed the amount necessary to increase the funded current liability percentage 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, plus "(B) the unfunded new liability amount. "(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 5 ^ ^s 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.—

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"(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 17, 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)

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UNFUNDED EXISTING BENEFIT INCREASE LIABIL-

ITIES.—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