Sec. 140005. Conforming changes

2,333 words·~11 min read·/bill/116/hr/6800/pcs/section-140005

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Section 3 of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1002 ) is amended— in paragraph (35), by inserting or a composite plan after other than an individual account plan ; and by adding at the end the following: The term composite plan has the meaning given the term in section 801(a). . Section 304(b) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1084(b) ) is amended by adding at the end the following: In the case of a multiemployer defined benefit plan that has adopted an amendment under section 801(b), in accordance with which no further benefits shall accrue under the multiemployer defined benefit plan, the plan sponsor may combine the outstanding balance of all charge and credit bases and amortize that combined base in level annual installments (until fully amortized) over a period of 25 plan years beginning with the plan year following the date all benefit accruals ceased. .

Section 431(b) of the Internal Revenue Code of 1986 is amended by adding at the end the following: In the case of a multiemployer defined benefit plan that has adopted an amendment under section 437(b), in accordance with which no further benefits shall accrue under the multiemployer defined benefit plan, the plan sponsor may combine the outstanding balance of all charge and credit bases and amortize that combined base in level annual installments (until fully amortized) over a period of 25 plan years beginning with the plan year following the date on which all benefit accruals ceased. .

Section 208 of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1058 ) is amended— by striking so much of the first sentence as precedes may not merge and inserting the following: Except as provided in paragraph (2), a pension plan may not merge, and ; and by striking the second sentence and adding at the end the following: Paragraph

(1)shall not apply to any transaction to the extent that participants either before or after the transaction are covered under a multiemployer plan to which title IV of this Act applies or a composite plan. . Section 401(a)(12) of the Internal Revenue Code of 1986 is amended— by striking

(12)A trust and inserting the following: Except as provided in subparagraph (B), a trust ; by striking the second sentence; and by adding at the end the following: Subparagraph

(A)shall not apply to any multiemployer plan with respect to any transaction to the extent that participants either before or after the transaction are covered under a multiemployer plan to which title IV of the Employee Retirement Income Security Act of 1974 applies or a composite plan. . Paragraph

(1)of section 414(l) of such Code is amended— by striking

(1)and all that follows through In general shall not constitute and inserting the following: Except as provided in subparagraph (B), a trust which forms a part of a plan shall not constitute ; and by striking the second sentence; and by adding at the end the following: Subparagraph

(A)does not apply to any multiemployer plan with respect to any transaction to the extent that participants either before or after the transaction are covered under a multiemployer plan to which title IV of the Employee Retirement Income Security Act of 1974 applies or a composite plan. . Section 401(a)(25) of the Internal Revenue Code of 1986 is amended by inserting (in the case of a composite plan, benefits objectively calculated pursuant to a formula) after definitely determinable benefits . Section 401(a)(34) of the Internal Revenue Code of 1986 is amended by striking , a trust and inserting or a composite plan, a trust . Section 404(a)(1) of the Internal Revenue Code of 1986 is amended by redesignating subparagraph

(E)as subparagraph

(F)and by inserting after subparagraph

(D)the following: In the case of a composite plan, subparagraph

(D)shall not apply and the maximum amount deductible for a plan year shall be the excess (if any) of— 160 percent of the greater of— the current liability of the plan determined in accordance with the principles of section 431(c)(6)(D), or the present value of plan liabilities as determined under section 438, over the fair market value of the plan’s assets, projected to the end of the plan year. Except as provided in subclause (II), if an employer contributes to a composite plan with respect to its employees, contributions by that employer to a multiemployer defined benefit plan with respect to some or all of the same group of employees shall be deductible under sections 162 and this section, subject to the limits in subparagraph (D). The full amount of a contribution to satisfy the transition contribution requirement (as defined in section 440A(d)) and allocated to the legacy defined benefit plan for the plan year shall be deductible for the employer’s taxable year ending with or within the plan year. . Section 203 of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1053 ) is amended by inserting after subsection

(f)the following: In determining a qualified employee’s years of service under a composite plan for purposes of this section, the employee’s years of service under a legacy plan shall be treated as years of service earned under the composite plan. For purposes of such determination, a composite plan shall not be treated as a defined benefit plan pursuant to section 801(d). For purposes of this subsection, an employee is a qualified employee if the employee first completes an hour of service under the composite plan (determined without regard to the provisions of this subsection) within the 12-month period immediately preceding or the 24-month period immediately following the date the employee ceased to accrue benefits under the legacy plan. For purposes of paragraph (1), the plan sponsor of the composite plan shall rely on a written certification by the plan sponsor of the legacy plan of the years of service the qualified employee completed under the defined benefit plan as of the date the employee satisfies the requirements of paragraph (2), disregarding any years of service that had been forfeited under the rules of the defined benefit plan before that date. In determining a qualified employee’s years of service under a legacy plan for purposes of this section, and in addition to any service under applicable regulations, the employee’s years of service under a composite plan shall be treated as years of service earned under the legacy plan. For purposes of such determination, a composite plan shall not be treated as a defined benefit plan pursuant to section 801(d). For purposes of this subsection, an employee is a qualified employee if the employee first completes an hour of service under the composite plan (determined without regard to the provisions of this subsection) within the 12-month period immediately preceding or the 24-month period immediately following the date the employee ceased to accrue benefits under the legacy plan. For purposes of paragraph (1), the plan sponsor of the legacy plan shall rely on a written certification by the plan sponsor of the composite plan of the years of service the qualified employee completed under the composite plan after the employee satisfies the requirements of paragraph (2), disregarding any years of service that has been forfeited under the rules of the composite plan. . Section 411(a) of the Internal Revenue Code of 1986 is amended by adding at the end the following: In determining a qualified employee’s years of service under a composite plan for purposes of this subsection, the employee’s years of service under a legacy plan shall be treated as years of service earned under the composite plan. For purposes of such determination, a composite plan shall not be treated as a defined benefit plan pursuant to section 437(d). For purposes of this paragraph, an employee is a qualified employee if the employee first completes an hour of service under the composite plan (determined without regard to the provisions of this paragraph) within the 12-month period immediately preceding or the 24-month period immediately following the date the employee ceased to accrue benefits under the legacy plan. For purposes of subparagraph (A), the plan sponsor of the composite plan shall rely on a written certification by the plan sponsor of the legacy plan of the years of service the qualified employee completed under the legacy plan as of the date the employee satisfies the requirements of subparagraph (B), disregarding any years of service that had been forfeited under the rules of the defined benefit plan before that date. In determining a qualified employee’s years of service under a legacy plan for purposes of this section, and in addition to any service under applicable regulations, the employee’s years of service under a composite plan shall be treated as years of service earned under the legacy plan. For purposes of such determination, a composite plan shall not be treated as a defined benefit plan pursuant to section 437(d). For purposes of this paragraph, an employee is a qualified employee if the employee first completes an hour of service under the composite plan (determined without regard to the provisions of this paragraph) within the 12-month period immediately preceding or the 24-month period immediately following the date the employee ceased to accrue benefits under the legacy plan. For purposes of subparagraph (A), the plan sponsor of the legacy plan shall rely on a written certification by the plan sponsor of the composite plan of the years of service the qualified employee completed under the composite plan after the employee satisfies the requirements of subparagraph (B), disregarding any years of service that has been forfeited under the rules of the composite plan. . Section 203(a)(3)(E)(ii) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1053(a)(3)(E)(ii) ) is amended— in subclause

(I)by striking 4244A and inserting 305(e), 803, ; and in subclause

(II)by striking 4245 and inserting 305(e), 4245, . Section 411(a)(3)(F) of the Internal Revenue Code of 1986 is amended— in clause

(i)by striking section 418D or under section 4281 of the Employee Retirement Income Security Act of 1974 and inserting section 432(e) or 439 or under section 4281 of the Employee Retirement Income Security Act of 1974 ; and in clause

(ii)by inserting or 432(e) after section 418E . Section 204(b)(1)(B)(i) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1054(b)(1)(B)(i) ) is amended by inserting , including an amendment reducing or suspending benefits under section 305(e), 803, 4245 or 4281, after any amendment to the plan . Section 411(b)(1)(B)(i) of the Internal Revenue Code of 1986 is amended by inserting , including an amendment reducing or suspending benefits under section 418E, 432(e) or 439, or under section 4281 of the Employee Retirement Income Security Act of 1974, after any amendment to the plan . Section 204(b)(1)(H)(v) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1053(b)(1)(H)(v) ) is amended by inserting before the period at the end the following: , or benefits are reduced or suspended under section 305(e), 803, 4245, or 4281 . Section 411(b)(1)(H)(iv) of the Internal Revenue Code of 1986 is amended— in the heading by striking and inserting benefit ; and benefit and the suspension and reduction of certain benefits in the text by inserting before the period at the end the following: , or benefits are reduced or suspended under section 418E, 432(e), or 439, or under section 4281 of the Employee Retirement Income Security Act of 1974 . Section 204(g)(1) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1053(g)(1) ) is amended by inserting after 302(d)(2) the following: , 305(e), 803, 4245, . Section 411(d)(6)(A) of the Internal Revenue Code of 1986 is amended by inserting after 412(d)(2), the following: 418E, 432(e), or 439, . Section 305 of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1085 ) is amended by adding at the end the following: Sections 302, 304, and 305 shall not apply to an employer that has an obligation to contribute to a plan that is a legacy plan within the meaning of section 805(a) solely because the employer has an obligation to contribute to a composite plan described in section 801 that is associated with that legacy plan. . Section 432 of the Internal Revenue Code of 1986 is amended by adding at the end the following: Sections 412, 431, and 432 shall not apply to an employer that has an obligation to contribute to a plan that is a legacy plan within the meaning of section 440A(a) solely because the employer has an obligation to contribute to a composite plan described in section 437 that is associated with that legacy plan. . Section 403(d) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1103(d) is amended— in paragraph (1), by striking regulations of the Secretary. and inserting regulations of the Secretary, or as provided in paragraph (3). ; and by adding at the end the following: Section 4044(a) of this Act shall be applied in the case of the termination of a composite plan by— limiting the benefits subject to paragraph

(3)thereof to benefits as defined in section 802(b)(3)(B); and including in the benefits subject to paragraph

(4)all other benefits (if any) of individuals under the plan that would be guaranteed under section 4022A if the plan were subject to title IV. . Where the implementation of any provision of law added or amended by this division is subject to issuance of regulations by the Secretary of Labor, the Secretary of the Treasury, or the Pension Benefit Guaranty Corporation, a multiemployer plan shall not be treated as failing to meet the requirements of any such provision prior to the issuance of final regulations or other guidance to carry out such provision if such plan is operated in accordance with a reasonable, good faith interpretation of such provision.

Connectionstraces to 7

Traces to 7 documents

U.S. Code

Citation graph

cites case law

Sec. 140005

Conforming changes

Cites 7Cited by 0 across 0 sources