Sec. 9703. Adjustments to funding standard account rules
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Section 304(b)(8) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1084(b) ) is amended by adding at the end the following new subparagraph: A multiemployer plan with respect to which the solvency test under subparagraph
(C)is met as of February 29, 2020, may elect to apply this paragraph (without regard to whether such plan previously elected the application of this paragraph)— by substituting February 29, 2020 for August 31, 2008 each place it appears in subparagraphs (A)(i), (B)(i)(I), and (B)(i)(II), by inserting and other losses related to the virus SARS–CoV–2 or coronavirus disease 2019 (COVID–19) (including experience losses related to reductions in contributions, reductions in employment, and deviations from anticipated retirement rates, as determined by the plan sponsor) after net investment losses in subparagraph (A)(i), and by substituting this subparagraph or subparagraph
(A)for this subparagraph and subparagraph
(A)both in subparagraph (B)(iii). The preceding sentence shall not apply to a plan to which special financial assistance is granted under section 4262. For purposes of the application of this subparagraph, the Secretary of the Treasury shall rely on the plan sponsor's calculations of plan losses unless such calculations are clearly erroneous. . Section 431(b)(8) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph: A multiemployer plan with respect to which the solvency test under subparagraph
(C)is met as of February 29, 2020, may elect to apply this paragraph (without regard to whether such plan previously elected the application of this paragraph)— by substituting February 29, 2020 for August 31, 2008 each place it appears in subparagraphs (A)(i), (B)(i)(I), and (B)(i)(II), by inserting and other losses related to the virus SARS–CoV–2 or coronavirus disease 2019 (COVID–19) (including experience losses related to reductions in contributions, reductions in employment, and deviations from anticipated retirement rates, as determined by the plan sponsor) after net investment losses in subparagraph (A)(i), and by substituting this subparagraph or subparagraph
(A)for this subparagraph and subparagraph
(A)both in subparagraph (B)(iii). The preceding sentence shall not apply to a plan to which special financial assistance is granted under section 4262 of the Employee Retirement Income Security Act of 1974. For purposes of the application of this subparagraph, the Secretary shall rely on the plan sponsor's calculations of plan losses unless such calculations are clearly erroneous. . The amendments made by this section shall take effect as of the first day of the first plan year ending on or after February 29, 2020, except that any election a plan makes pursuant to this section that affects the plan’s funding standard account for the first plan year beginning after February 29, 2020, shall be disregarded for purposes of applying the provisions of section 305 of the Employee Retirement Income Security Act of 1974 and section 432 of the Internal Revenue Code of 1986 to such plan year. Notwithstanding paragraph (1), the restrictions on plan amendments increasing benefits in sections 304(b)(8)(D) of such Act and 431(b)(8)(D) of such Code, as applied by the amendments made by this section, shall take effect on the date of enactment of this Act.
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Sec. 9703
Adjustments to funding standard account rules
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