120 STAT. 890
PUBLIC LAW 109–280—AUG. 17, 2006
Subtitle B—Amendments to Internal Revenue Code of 1986 SEC. 211. FUNDING RULES FOR MULTIEMPLOYER DEFINED BENEFIT PLANS.
(a) IN GENERAL.—Subpart A of part III of subchapter D of chapter 1 of the Internal Revenue Code of 1986 (as added by this Act) is amended by inserting after section 430 the following new section: 26 USC 431.
‘‘SEC. 431. MINIMUM FUNDING STANDARDS FOR MULTIEMPLOYER PLANS.
‘‘(a) IN GENERAL.—For purposes of section 412, the accumulated funding deficiency of a multiemployer plan for any plan year is— ‘‘(1) except as provided in paragraph (2), the amount, determined as of the end of the plan year, equal to the excess (if any) of the total charges to the funding standard account of the plan for all plan years (beginning with the first plan year for which this part applies to the plan) over the total credits to such account for such years, and ‘‘(2) if the multiemployer plan is in reorganization for any plan year, the accumulated funding deficiency of the plan determined under section 4243 of the Employee Retirement Income Security Act of 1974. ‘‘(b) FUNDING STANDARD ACCOUNT.— ‘‘(1) ACCOUNT REQUIRED.—Each multiemployer plan to which this part applies shall establish and maintain a funding standard account. Such account shall be credited and charged solely as provided in this section. ‘‘(2) CHARGES TO ACCOUNT.—For a plan year, the funding standard account shall be charged with the sum of— ‘‘(A) the normal cost of the plan for the plan year, ‘‘(B) the amounts necessary to amortize in equal annual installments (until fully amortized)— ‘‘(i) in the case of a plan which comes into existence on or after January 1, 2008, the unfunded past service liability under the plan on the first day of the first plan year to which this section applies, over a period of 15 plan years, ‘‘(ii) separately, with respect to each plan year, the net increase (if any) in unfunded past service liability under the plan arising from plan amendments adopted in such year, over a period of 15 plan years, ‘‘(iii) separately, with respect to each plan year, the net experience loss (if any) under the plan, over a period of 15 plan years, and ‘‘(iv) separately, with respect to each plan year, the net loss (if any) resulting from changes in actuarial assumptions used under the plan, over a period of 15 plan years, ‘‘(C) the amount necessary to amortize each waived funding deficiency (within the meaning of section 412(c)(3)) for each prior plan year in equal annual installments (until fully amortized) over a period of 15 plan years, ‘‘(D) the amount necessary to amortize in equal annual installments (until fully amortized) over a period of 5 plan
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