Sec. 103. ELECTIONS
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## SEC. 103 ELECTIONS ###
(a)Election Not To Be Treated as a CSEC Plan Subsection
(f)of section 210 of the Employee Retirement Income Security Act of 1974, as added by section 101, is amended by adding at the end the following new paragraph: > > #### “(3) Election > > > ##### “(A) In general > > If a plan falls within the definition of a CSEC plan under this subsection (without regard to this paragraph), such plan shall be a CSEC plan unless the plan sponsor elects not later than the close of the first plan year of the plan beginning after December 31, 2013, not to be treated as a CSEC plan. An election under the preceding sentence shall take effect for such plan year and, once made, may be revoked only with the consent of the Secretary of the Treasury. > > > ##### “(B) Special rule > > If a plan described in subparagraph
(A)is treated as a CSEC plan, section 104 of the Pension Protection Act of 2006, as amended by the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010, shall cease to apply to such plan as of the first date as of which such plan is treated as a CSEC plan.” > . ###
(b)Election To Cease To Be Treated as an Eligible Charity Plan **[**[26 U.S.C. 401 note](/us/usc/t26/s401)**]** Subsection
(d)of section 104 of the Pension Protection Act of 2006, as added by section 202 of the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010, is amended— ####
(1)by striking “For purposes of” and inserting “(1) In general.—For purposes of”, and ####
(2)by adding at the end the following: > > #### “(2) Election not to be an eligible charity plan > > A plan sponsor may elect for a plan to cease to be treated as an eligible charity plan for plan years beginning after December 31, 2013. Such election shall be made at such time and in such form and manner as shall be prescribed by the Secretary of the Treasury. Any such election may be revoked only with the consent of the Secretary of the Treasury. > > > #### “(3) Election to use funding options available to other plan sponsors > > > ##### “(A) > > A plan sponsor that makes the election described in paragraph
(2)may elect for a plan to apply the rules described in subparagraphs (B), (C), and
(D)for plan years beginning after December 31, 2013. Such election shall be made at such time and in such form and manner as shall be prescribed by the Secretary of the Treasury. Any such election may be revoked only with the consent of the Secretary of the Treasury. > > > ##### “(B) > > Under the rules described in this subparagraph, for the first plan year beginning after December 31, 2013, a plan has— > > > ###### “(i) > > an 11-year shortfall amortization base, > > > ###### “(ii) > > a 12-year shortfall amortization base, and > > > ###### “(iii) > > a 7-year shortfall amortization base. > > > ##### “(C) > > Under the rules described in this subparagraph, section 303(c)(2)(A) and
(B)of the Employee Retirement Income Security Act of 1974, and section 430(c)(2)(A) and
(B)of the Internal Revenue Code of 1986 shall be applied by— > > > ###### “(i) > > in the case of an 11-year shortfall amortization base, substituting ‘11-plan-year period’ for ‘7-plan-year period’ wherever such phrase appears, and > > > ###### “(ii) > > in the case of a 12-year shortfall amortization base, substituting ‘12-plan-year period’ for ‘7-plan-year period’ wherever such phrase appears. > > > ##### “(D) > > Under the rules described in this subparagraph, section 303(c)(7) of the Employee Retirement Income Security Act of 1974 and section 430(c)(7) of the Internal Revenue Code of 1986 shall apply to a plan for which an election has been made under subparagraph (A). Such provisions shall apply in the following manner: > > > ###### “(i) > > The first plan year beginning after December 31, 2013, shall be treated as an election year, and no other plan years shall be so treated. > > > ###### “(ii) > > All references in section 303(c)(7) of such Act and section 430(c)(7) of such Code to ‘February 28, 2010’ or ‘March 1, 2010’ shall be treated as references to ‘February 28, 2013’ or ‘March 1, 2013’, respectively. > > > ##### “(E) > > For purposes of this paragraph, the 11-year amortization base is an amount, determined for the first plan year beginning after December 31, 2013, equal to the unamortized principal amount of the shortfall amortization base (as defined in section 303(c)(3) of the Employee Retirement Income Security Act of 1974 and section 430(c)(3) of the Internal Revenue Code of 1986) that would have applied to the plan for the first plan beginning after December 31, 2009, if— > > > ###### “(i) > > the plan had never been an eligible charity plan, > > > ###### “(ii) > > the plan sponsor had made the election described in section 303(c)(2)(D)(i) of the Employee Retirement Income Security Act of 1974 and in section 430(c)(2)(D)(i) of the Internal Revenue Code of 1986 to have section 303(c)(2)(D)(i) of such Act and section 430(c)(2)(D)(iii) of such Code apply with respect to the shortfall amortization base for the first plan year beginning after December 31, 2009, and > > > ###### “(iii) > > no event had occurred under paragraph
(6)or
(7)of section 303(c) of such Act or paragraph
(6)or
(7)of section 430(c) of such Code that, as of the first day of the first plan year beginning after December 31, 2013, would have modified the shortfall amortization base or the shortfall amortization installments with respect to the first plan year beginning after December 31, 2009. > > > ##### “(F) > > For purposes of this paragraph, the 12-year amortization base is an amount, determined for the first plan year beginning after December 31, 2013, equal to the unamortized principal amount of the shortfall amortization base (as defined in section 303(c)(3) of the Employee Retirement Income Security Act of 1974 and section 430(c)(3) of the Internal Revenue Code of 1986) that would have applied to the plan for the first plan beginning after December 31, 2010, if— > > > ###### “(i) > > the plan had never been an eligible charity plan, > > > ###### “(ii) > > the plan sponsor had made the election described in section 303(c)(2)(D)(i) of the Employee Retirement Income Security Act of 1974 and in section 430(c)(2)(D)(i) of the Internal Revenue Code of 1986 to have section 303(c)(2)(D)(i) of such Act and section 430(c)(2)(D)(iii) of such Code apply with respect to the shortfall amortization base for the first plan year beginning after December 31, 2010, and > > > ###### “(iii) > > no event had occurred under paragraph
(6)or
(7)of section 303(c) of such Act or paragraph
(6)or
(7)of section 430(c) of such Code that, as of the first day of the first plan year beginning after December 31, 2013, would have modified the shortfall amortization base or the shortfall amortization installments with respect to the first plan year beginning after December 31, 2010. > > > ##### “(G) > > For purposes of this paragraph, the 7-year shortfall amortization base is an amount, determined for the first plan year beginning after December 31, 2013, equal to— > > > ###### “(i) > > the shortfall amortization base for the first plan year beginning after December 31, 2013, without regard to this paragraph, minus > > > ###### “(ii) > > the sum of the 11-year shortfall amortization base and the 12-year shortfall amortization base. > > > #### “(4) Retroactive election > > Not later than December 31, 2014, a plan sponsor may make a one-time, irrevocable, retroactive election to not be treated as an eligible charity plan. Such election shall be effective for plan years beginning after December 31, 2007, and shall be made by providing reasonable notice to the Secretary of the Treasury.” > . ###
(c)Deemed Election **[**[26 U.S.C. 410 note](/us/usc/t26/s410)**]** For purposes of the Internal Revenue Code of 1986, sections 4(b)(2) and 4021(b)(3) of the Employee Retirement Income Security Act of 1974, and all other purposes, a plan shall be deemed to have made an irrevocable election under section 410(d) of the Internal Revenue Code of 1986 if— ####
(1)the plan was established before January 1, 2014; ####
(2)the plan falls within the definition of a CSEC plan; ####
(3)the plan sponsor does not make an election under section 210(f)(3)(A) of the Employee Retirement Income Security Act of 1974 and section 414(y)(3)(A) of the Internal Revenue Code of 1986, as added by this Act; and ####
(4)the plan, plan sponsor, administrator, or fiduciary remits one or more premium payments for the plan to the Pension Benefit Guaranty Corporation for a plan year beginning after December 31, 2013. ###
(d)Effective Date **[**[26 U.S.C. 1060 note](/us/usc/t26/s1060)**]** The amendments made by this section shall apply as of the date of enactment of this Act.
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