Sec. 402. Safe harbors
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/bill/117/s/589/is/section-402A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Clause
(vi)of section 432(f)(9)(D) of the Internal Revenue Code of 1986, as redesignated by section 211(a) and as in effect before the amendments made by section 211 other than subsection
(a)thereof, is amended by adding at the end the following flush language: For purposes of the preceding sentence, a suspension of benefits in the form of a flat percentage reduction in benefits which is applied in the same manner to all participants and beneficiaries (before application of clauses
(ii)and (iii)) shall be treated as being equitably distributed across the participant and beneficiary population. . Clause
(v)of section 432(f)(9)(G) of such Code, as so redesignated and in effect, is amended— by striking in the heading and inserting Standard for accepting , and Standards for assumptions and accepting by striking In evaluating and inserting The Secretary, in consultation with the Pension Benefit Guaranty Corporation and the Secretary of Labor, shall promulgate regulations regarding the actuarial assumptions that plans may use for purposes of the application under this subparagraph. Such regulations shall create safe harbors regarding assumptions for future rate of investment returns, future industry activity and contribution base units, mortality, and other assumptions as determined by the Secretary, and shall describe the situations in which actuarial assumptions may change during review of an application without the withdrawal and resubmission of the application. In evaluating . Clause
(vi)of section 305(f)(9)(D) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1085(f)(9)(D) ), as redesignated by section 212(a) and as in effect before the amendments made by section 212 other than subsection
(a)thereof, is amended by adding at the end the following flush language: For purposes of the preceding sentence, a suspension of benefits in the form of a flat percentage reduction in benefits which is applied in the same manner to all participants and beneficiaries (before application of clauses
(ii)and (iii)) shall be treated as being equitably distributed across the participant and beneficiary population. . Clause
(v)of section 305(f)(9)(G) of such Act ( 29 U.S.C. 1085(f)(9)(G) ), as so redesignated and in effect, is amended— by striking in the heading and inserting Standard for accepting , and Standards for assumptions and accepting by striking In evaluating and inserting The Secretary of the Treasury, in consultation with the Pension Benefit Guaranty Corporation and the Secretary of Labor, shall promulgate regulations regarding the actuarial assumptions that plans may use for purposes of the application under this subparagraph. Such regulations shall create safe harbors regarding assumptions for future rate of investment returns, future industry activity and contribution base units, mortality, and other assumptions as determined by the Secretary, and shall describe the situations in which actuarial assumptions may change during review of an application without the withdrawal and resubmission of the application. In evaluating . The amendments made by subsections (a)(1) and (b)(1) shall apply to suspensions of benefits taking effect after the date of the enactment of this Act. The amendments made by subsections (a)(2) and (b)(2) shall apply to applications submitted after the date of the enactment of this Act.
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