PUBLIC LAW 109–280—AUG. 17, 2006
120 STAT. 841
‘‘(II) such employee is offered a substantial amount of additional cash compensation, substantially enhanced retirement benefits under the plan, or materially reduced employment duties on the condition that by a specified date (not later than December 31, 2010) the employee retires (as defined under the terms of the plan), ‘‘(III) such offer is made during 2006 and pursuant to a bona fide retirement incentive program and requires, by the terms of the offer, that such offer can be accepted not later than a specified date (not later than December 31, 2006), and ‘‘(IV) such employee does not elect to accept such offer before the specified date on which the offer expires. ‘‘(ii) SPECIFIED AUTOMOBILE MANUFACTURER.—For purposes of clause (i), the term ‘specified automobile manufacturer’ means— ‘‘(I) any manufacturer of automobiles, and ‘‘(II) any manufacturer of automobile parts which supplies such parts directly to a manufacturer of automobiles and which, after a transaction or series of transactions ending in 1999, ceased to be a member of a controlled group which included such manufacturer of automobiles. ‘‘(5) TRANSITION BETWEEN APPLICABLE FUNDING TARGETS AND BETWEEN APPLICABLE TARGET NORMAL COSTS.— ‘‘(A) IN GENERAL.—In any case in which a plan which is in at-risk status for a plan year has been in such status for a consecutive period of fewer than 5 plan years, the applicable amount of the funding target and of the target normal cost shall be, in lieu of the amount determined without regard to this paragraph, the sum of— ‘‘(i) the amount determined under this section without regard to this subsection, plus ‘‘(ii) the transition percentage for such plan year of the excess of the amount determined under this subsection (without regard to this paragraph) over the amount determined under this section without regard to this subsection. ‘‘(B) TRANSITION PERCENTAGE.—For purposes of subparagraph (A), the transition percentage shall be determined in accordance with the following table:
Deadline.
Deadline.
‘‘If the consecutive number of years (including the plan year)
The transition the plan is in at-risk status is— percentage is— 1 .............................................................................................. 20 2 .............................................................................................. 40 3 .............................................................................................. 60 4 .............................................................................................. 80.
‘‘(C) YEARS BEFORE EFFECTIVE DATE.—For purposes of this paragraph, plan years beginning before 2008 shall not be taken into account. ‘‘(6) SMALL PLAN EXCEPTION.—If, on each day during the preceding plan year, a plan had 500 or fewer participants, the plan shall not be treated as in at-risk status for the plan
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