120 STAT. 810
Effective date.
VerDate 14-DEC-2004
10:20 Jul 12, 2007
Jkt 059194
PUBLIC LAW 109–280—AUG. 17, 2006 sponsor of a contribution (in addition to any minimum required contribution under section 303) equal to— ‘‘(i) in the case of subparagraph (A)(i), the amount of the increase in the funding target of the plan (under section 303) for the plan year attributable to the occurrence referred to in subparagraph (A), and ‘‘(ii) in the case of subparagraph (A)(ii), the amount sufficient to result in a funding target attainment percentage of 60 percent. ‘‘(C) UNPREDICTABLE CONTINGENT EVENT.—For purposes of this paragraph, the term ‘unpredictable contingent event benefit’ means any benefit payable solely by reason of— ‘‘(i) a plant shutdown (or similar event, as determined by the Secretary of the Treasury), or ‘‘(ii) an event other than the attainment of any age, performance of any service, receipt or derivation of any compensation, or occurrence of death or disability. ‘‘(2) LIMITATIONS ON PLAN AMENDMENTS INCREASING LIABILITY FOR BENEFITS.— ‘‘(A) IN GENERAL.—No 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— ‘‘(i) less than 80 percent, or ‘‘(ii) would be less than 80 percent taking into account such amendment. ‘‘(B) EXEMPTION.—Subparagraph (A) 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 303) equal to— ‘‘(i) in the case of subparagraph (A)(i), the amount of the increase in the funding target of the plan (under section 303) for the plan year attributable to the amendment, and ‘‘(ii) in the case of subparagraph (A)(ii), the amount sufficient to result in an adjusted funding target attainment percentage of 80 percent. ‘‘(C) EXCEPTION FOR CERTAIN BENEFIT INCREASES.— Subparagraph (A) shall not apply to any amendment which provides for an increase in benefits under a formula which is not based on a participant’s compensation, but only if the rate of such increase is not in excess of the contemporaneous rate of increase in average wages of participants covered by the amendment. ‘‘(3) LIMITATIONS ON ACCELERATED BENEFIT DISTRIBUTIONS.— ‘‘(A) FUNDING PERCENTAGE LESS THAN 60 PERCENT.— A defined benefit plan which is a single-employer plan shall provide that, in any case in which the plan’s adjusted
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