Sec. 9706. EXTENSION OF PENSION FUNDING STABILIZATION PERCENTAGES FOR SINGLE EMPLOYER PLANS
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## SEC. 9706 EXTENSION OF PENSION FUNDING STABILIZATION PERCENTAGES FOR SINGLE EMPLOYER PLANS ###
(a)Amendment to Internal Revenue Code of 1986 ####
(1)In general **[**[26 U.S.C. 430](/us/usc/t26/s430)**]** The table contained in subclause
(II)of section 430(h)(2)(C)(iv) of the Internal Revenue Code of 1986 is amended to read as follows:"“If the calendar year is:The applicable minimum percentage is:The applicable maximum percentage is:Any year in the period starting in 2012 and ending in 201990%110% Any year in the period starting in 2020 and ending in 202595%105% 202690%110% 202785%115% 202880%120% 202975%125% After 202970%130%.”". ####
(2)Floor on 25-year averages Subclause
(I)of section 430(h)(2)(C)(iv) of such Code is amended by adding at the end the following: “Notwithstanding anything in this subclause, if the average of the first, second, or third segment rate for any 25-year period is less than 5 percent, such average shall be deemed to be 5 percent.”. ###
(b)Amendments to Employee Retirement Income Security Act of 1974 ####
(1)In general The table contained in subclause
(II)of section 303(h)(2)(C)(iv) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1083(h)(2)(C)(iv)(II)) is amended to read as follows:"“If the calendar year is:The applicable minimum percentage is:The applicable maximum percentage is:Any year in the period starting in 2012 and ending in 201990%110% Any year in the period starting in 2020 and ending in 202595%105% 202690%110% 202785%115% 202880%120% 202975%125% After 202970%130%.”". ####
(2)Floor on 25-year averages Subclause
(I)of section 303(h)(2)(C)(iv) of such Act (29 U.S.C. 1083(h)(2)(C)(iv)(I)) is amended by adding at the end the following: “Notwithstanding anything in this subclause, if the average of the first, second, or third segment rate for any 25-year period is less than 5 percent, such average shall be deemed to be 5 percent.”. ####
(3)Conforming amendments #####
(A)In general Section 101(f)(2)(D) of such Act (29 U.S.C. 1021(f)(2)(D)) is amended— ######
(i)in clause
(i)by striking “and the Bipartisan Budget Act of 2015” both places it appears and inserting “, the Bipartisan Budget Act of 2015, and the American Rescue Plan Act of 2021”, and ######
(ii)in clause
(ii)by striking “2023” and inserting “2029”. #####
(B)Statements **[**[29 U.S.C. 1021 note](/us/usc/t29/s1021)**]** The Secretary of Labor shall modify the statements required under subclauses
(I)and
(II)of section 101(f)(2)(D)(i) of such Act to conform to the amendments made by this section. ###
(c)Effective Date **[**[26 U.S.C. 430 note](/us/usc/t26/s430)**]** ####
(1)In general The amendments made by this section shall apply with respect to plan years beginning after December 31, 2019. ####
(2)Election not to apply A plan sponsor may elect not to have the amendments made by this section apply to any plan year beginning before January 1, 2022, either (as specified in the election)— #####
(A)for all purposes for which such amendments apply, or #####
(B)solely for purposes of determining the adjusted funding target attainment percentage under sections 436 of the Internal Revenue Code of 1986 and 206(g) of the Employee Retirement Income Security Act of 1974 for such plan year. A plan shall not be treated as failing to meet the requirements of sections 204(g) of such Act and 411(d)(6) of such Code solely by reason of an election under this paragraph.
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Sec. 9706
EXTENSION OF PENSION FUNDING STABILIZATION PERCENTAGES FOR SINGLE EMPLOYER PLANS
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