PUBLIC LAW 109–280—AUG. 17, 2006
120 STAT. 995
(A) by striking ‘‘In the case of a plan’’ and inserting ‘‘In the case of a multiemployer plan’’, (B) by striking ‘‘section 412(c)(7)’’ each place it appears and inserting ‘‘section 431(c)(6)’’, (C) by striking ‘‘section 412(c)(7)(B)’’ and inserting ‘‘section 431(c)(6)(A)(ii)’’, (D) by striking ‘‘section 412(c)(7)(A)’’ and inserting ‘‘section 431(c)(6)(A)(i)’’, and (E) by striking ‘‘section 412’’ and inserting ‘‘section 431’’. (3) Section 404(a)(7) of such Code, as amended by this Act, is amended— (A) by adding at the end of subparagraph (A) the following new sentence: ‘‘In the case of a defined benefit plan which is a single employer plan, the amount necessary to satisfy the minimum funding standard provided by section 412 shall not be less than the plan’s funding shortfall determined under section 430.’’, and (B) by striking subparagraph (D) and inserting: ‘‘(D) INSURANCE CONTRACT PLANS.—For purposes of this paragraph, a plan described in section 412(e)(3) shall be treated as a defined benefit plan.’’. (4) Section 404A(g)(3)(A) of such Code is amended by striking ‘‘paragraphs (3) and (7) of section 412(c)’’ and inserting ‘‘paragraphs (3) and (6) of section 431(c)’’. (d) SPECIAL RULE FOR 2006 AND 2007.— (1) IN GENERAL.—Clause (i) of section 404(a)(1)(D) of the Internal Revenue Code of 1986 (relating to special rule in case of certain plans) is amended by striking ‘‘section 412(l)’’ and inserting ‘‘section 412(l)(8)(A), except that section 412(l)(8)(A) shall be applied for purposes of this clause by substituting ‘150 percent (140 percent in the case of a multiemployer plan) of current liability’ for ‘the current liability’ in clause (i).’’. (2) CONFORMING AMENDMENT.—Section 404(a)(1) of the Internal Revenue Code of 1986 is amended by striking subparagraph (F). (e) EFFECTIVE DATES.— (1) IN GENERAL.—Except as provided in paragraph (2), the amendments made by this section shall apply to years beginning after December 31, 2007. (2) SPECIAL RULES.—The amendments made by subsection (d) shall apply to years beginning after December 31, 2005.
26 USC 404.
Applicability.
26 USC 404 note.
SEC. 802. DEDUCTION LIMITS FOR MULTIEMPLOYER PLANS.
(a) INCREASE IN DEDUCTION.—Section 404(a)(1)(D) of the Internal Revenue Code of 1986, as amended by this Act, is amended to read as follows: ‘‘(D) AMOUNT DETERMINED ON BASIS OF UNFUNDED CURRENT LIABILITY.—In the case of a defined benefit plan which is a multiemployer plan, except as provided in regulations, the maximum amount deductible under the limitations of this paragraph shall not be less than the excess (if any) of— ‘‘(i) 140 percent of the current liability of the plan determined under section 431(c)(6)(C), over
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