Sec. 114. Benefits under certain terminated plans
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Section 4281 of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1441 ) is amended— in subsection (a), by striking section 4041A(d) and inserting Section 4041A(c) ; by striking subsections (b), (c), and (d); and by inserting after subsection
(a)the following: If a plan has been terminated pursuant to paragraph (1), (2), or
(4)of section 4041A(a), the plan sponsor shall amend the plan to suspend benefits in excess of the level of basic benefits. Any plan amendment required by this subsection shall, in accordance with regulations prescribed by the corporation, take effect not later than 6 months after the date on which the plan is terminated. The value of nonforfeitable benefits under a terminated plan described in subsection (a), and the value of the plan's assets, shall be determined in writing, in accordance with regulations prescribed by the corporation, as of the end of the plan year during which section 4041A(c) becomes applicable to such plan. For purposes of this subsection, plan assets include outstanding claims for withdrawal liability (within the meaning of section 4001(a)(12). If, according to the determination made under paragraph (1), the value of plan assets is sufficient to pay nonforfeitable benefits, the plan sponsor shall use the plan assets to purchase irrevocable commitments to provide such benefits from an insurer or otherwise distribute plan assets in satisfaction of the plan's obligations with respect to nonforfeitable benefits, in accordance with all applicable regulations. If, according to the determination made under subsection (c)(1), the value of nonforfeitable benefits exceeds the value of the plan’s assets, the plan sponsor shall amend the plan to reduce benefits under the plan as provided in paragraph (2). Any plan amendment required by paragraph
(1)shall, in accordance with regulations prescribed by the corporation— reduce benefits to the extent necessary to eliminate any benefits that are not nonforfeitable; reduce accrued benefits to the extent that those benefits are not eligible for the corporation’s guarantee under section 4022A(b); and suspend payment of benefits which are not basic benefits under section 4022A(c). The powers and duties under this section of a sponsor of a plan that is terminated as described in section 4041A, before or after the plan begins receiving financial assistance under section 4261, shall be prescribed by the corporation, and the corporation shall prescribe by regulation the requirements which assure that plan participants and beneficiaries receive adequate notice of any suspension of benefits. .
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Sec. 114
Benefits under certain terminated plans
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