Sec. 102. ELECTION OF ALTERNATIVE DEFICIT REDUCTION CONTRIBUTION
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## SEC. 102 ELECTION OF ALTERNATIVE DEFICIT REDUCTION CONTRIBUTION ###
(a)Amendment of ERISA Section 302(d) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1082(d)) is amended by adding at the end the following new paragraph: > > #### “(12) Election for certain plans > > > ##### “(A) In general > > In the case of a defined benefit plan established and maintained by an applicable employer, if this subsection did not apply to the plan for the plan year beginning in 2000 (determined without regard to paragraph (6)), then, at the election of the employer, the increased amount under paragraph
(1)for any applicable plan year shall be the greater of— > > > ###### “(i) > > 20 percent of the increased amount under paragraph
(1)determined without regard to this paragraph, or > > > ###### “(ii) > > the increased amount which would be determined under paragraph
(1)if the deficit reduction contribution under paragraph
(2)for the applicable plan year were determined without regard to subparagraphs (A), (B), and
(D)of paragraph (2). > > > ##### “(B) Restrictions on benefit increases > > No amendment which increases the liabilities of the plan by reason of any increase in benefits, any change in the accrual of benefits, or any change in the rate at which benefits become nonforfeitable under the plan shall be adopted during any applicable plan year, unless— > > > ###### “(i) > > the plan’s enrolled actuary certifies (in such form and manner prescribed by the Secretary of the Treasury) that the amendment provides for an increase in annual contributions which will exceed the increase in annual charges to the funding standard account attributable to such amendment, or > > > ###### “(ii) > > the amendment is required by a collective bargaining agreement which is in effect on the date of enactment of this subparagraph. > > If a plan is amended during any applicable plan year in violation of the preceding sentence, any election under this paragraph shall not apply to any applicable plan year ending on or after the date on which such amendment is adopted. > > > ##### “(C) Applicable employer > > For purposes of this paragraph, the term ‘**applicable employer**’ means an employer which is— > > > ###### “(i) > > a commercial passenger airline, > > > ###### “(ii) > > primarily engaged in the production or manufacture of a steel mill product or the processing of iron ore pellets, or > > > ###### “(iii) > > an organization described in section 501(c)(5) of the Internal Revenue Code of 1986 and which established the plan to which this paragraph applies on June 30, 1955. > > > ##### “(D) Applicable plan year > > For purposes of this paragraph— > > > ###### “(i) In general > > The term ‘**applicable plan year**’ means any plan year beginning after December 27, 2003, and before December 28, 2005, for which the employer elects the application of this paragraph. > > > ###### “(ii) Limitation on number of years which may be elected > > An election may not be made under this paragraph with respect to more than 2 plan years. > > > ##### “(E) Notice requirements for plans electing alternative deficit reduction contributions > > > ###### “(i) In general > > If an employer elects an alternative deficit reduction contribution under this paragraph and section 412(l)(12) of the Internal Revenue Code of 1986 for any year, the employer shall provide, within 30 days of filing the election for such year, written notice of the election to participants and beneficiaries and to the Pension Benefit Guaranty Corporation. > > > ###### “(ii) Notice to participants and beneficiaries > > The notice under clause
(i)to participants and beneficiaries shall include with respect to any election— > > > ###### “(I) > > the due date of the alternative deficit reduction contribution and the amount by which such contribution was reduced from the amount which would have been owed if the election were not made, and > > > ###### “(II) > > a description of the benefits under the plan which are eligible to be guaranteed by the Pension Benefit Guaranty Corporation and an explanation of the limitations on the guarantee and the circumstances under which such limitations apply, including the maximum guaranteed monthly benefits which the Pension Benefit Guaranty Corporation would pay if the plan terminated while underfunded. > > > ###### “(iii) Notice to pbgc > > The notice under clause
(i)to the Pension Benefit Guaranty Corporation shall include— > > > ###### “(I) > > the information described in clause (ii)(I), > > > ###### “(II) > > the number of years it will take to restore the plan to full funding if the employer only makes the required contributions, and > > > ###### “(III) > > information as to how the amount by which the plan is underfunded compares with the capitalization of the employer making the election. > > > ##### “(F) Election > > An election under this paragraph shall be made at such time and in such manner as the Secretary of the Treasury may prescribe.” > . ###
(b)Amendment of 1986 Code **[**[26 U.S.C. 412](/us/usc/t26/s412)**]** Section 412(l) of the Internal Revenue Code of 1986 (relating to applicability of subsection) is amended by adding at the end the following new paragraph: > > #### “(12) Election for certain plans > > > ##### “(A) In general > > In the case of a defined benefit plan established and maintained by an applicable employer, if this subsection did not apply to the plan for the plan year beginning in 2000 (determined without regard to paragraph (6)), then, at the election of the employer, the increased amount under paragraph
(1)for any applicable plan year shall be the greater of— > > > ###### “(i) > > 20 percent of the increased amount under paragraph
(1)determined without regard to this paragraph, or > > > ###### “(ii) > > the increased amount which would be determined under paragraph
(1)if the deficit reduction contribution under paragraph
(2)for the applicable plan year were determined without regard to subparagraphs (A), (B), and
(D)of paragraph (2). > > > ##### “(B) Restrictions on benefit increases > > No amendment which increases the liabilities of the plan by reason of any increase in benefits, any change in the accrual of benefits, or any change in the rate at which benefits become nonforfeitable under the plan shall be adopted during any applicable plan year, unless— > > > ###### “(i) > > the plan’s enrolled actuary certifies (in such form and manner prescribed by the Secretary) that the amendment provides for an increase in annual contributions which will exceed the increase in annual charges to the funding standard account attributable to such amendment, or > > > ###### “(ii) > > the amendment is required by a collective bargaining agreement which is in effect on the date of enactment of this subparagraph. > > If a plan is amended during any applicable plan year in violation of the preceding sentence, any election under this paragraph shall not apply to any applicable plan year ending on or after the date on which such amendment is adopted. > > > ##### “(C) Applicable employer > > For purposes of this paragraph, the term ‘**applicable employer**’ means an employer which is— > > > ###### “(i) > > a commercial passenger airline, > > > ###### “(ii) > > primarily engaged in the production or manufacture of a steel mill product or the processing of iron ore pellets, or > > > ###### “(iii) > > an organization described in section 501(c)(5) and which established the plan to which this paragraph applies on June 30, 1955. > > > ##### “(D) Applicable plan year > > For purposes of this paragraph— > > > ###### “(i) In general > > The term ‘**applicable plan year**’ means any plan year beginning after December 27, 2003, and before December 28, 2005, for which the employer elects the application of this paragraph. > > > ###### “(ii) Limitation on number of years which may be elected > > An election may not be made under this paragraph with respect to more than 2 plan years. > > > ##### “(E) Election > > An election under this paragraph shall be made at such time and in such manner as the Secretary may prescribe.” > . ###
(c)Effect of Election **[**[26 U.S.C. 412 note](/us/usc/t26/s412)**]** An election under section 302(d)(12) of the Employee Retirement Income Security Act of 1974 or section 412(l)(12) of the Internal Revenue Code of 1986 (as added by this section) with respect to a plan shall not invalidate any obligation (pursuant to a collective bargaining agreement in effect on the date of the election) to provide benefits, to change the accrual of benefits, or to change the rate at which benefits become nonforfeitable under the plan. ###
(d)Penalty for Failing To Provide Notice Section 502(c)(3) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1132(c)(3)) is amended by inserting “or who fails to meet the requirements of section 302(d)(12)(E) with respect to any person” after “101(e)(2) with respect to any person”.
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