Page:United States Statutes at Large Volume 100 Part 1.djvu/277

 PUBLIC LAW 99-272—APR. 7, 1986

100 STAT. 241

inserting in lieu thereof "for plan years beginning after December 31, 1985, an amount equal to $8.50". (2) CONFORMING AMENDMENT WITH RESPECT TO PLAN YEARS

AFTER 1977.—Section 4006(c)(1) (29 U.S.C. 1306(c)(1)) is amended by striking out subparagraph (A) and inserting in lieu thereof the following new subparagraph: "(A) in the case of each plan which was not a multiemployer plan in a plan year— "(i) with respect to each plan year beginning before January 1, 1978, an amount equal to $1 for each individual who was a participant in such plan during the plan year, and "(ii) with respect to each plan year beginning after December 31, 1977, an amount equal to $2.60 for each individual who was a participant in such plan during the plan year, and", (b) INCORPORATION OF CERTAIN P'ORMER PROVISIONS IN LIEU OF CROSS REFERENCE THERETO.—Section 4006(a) (29 U.S.C. 1306(a)) is

amended— (1) in paragraph (1), by striking out the last sentence; and (2) by adding at the end thereof the following new paragraph: "(6)(A) In carrying out its authority under paragraph (1) to establish premium rates and bases for basic benefits guaranteed under section 4022 with respect to single-employer plans, the corporation 29 USC 1322. shall establish such rates and bases in coverage schedules in accordance with the provisions of this paragraph. "(B) The corporation may establish annual premiums for singleemployer plans composed of the sum of— "(i) a charge based on a rate applicable to the excess, if any, of the present value of the basic benefits of the plan which are guaranteed over the value of the assets of the plan, not in excess of 0.1 percent, and "(ii) an additional charge based on a rate applicable to the present value of the basic benefits of the plan which are guaranteed. The rate for the additional charge referred to in clause (ii) shall be set by the corporation for every year at a level which the corporation estimates will yield total revenue approximately equal to the total revenue to be derived by the corporation from the charges referred to in clause (i) of this subparagraph. "(C) The corporation may establish annual premiums for singleemployer plans based on— "(i) the number of participants in a plan, but such premium rates shall not exceed the rates described in paragraph (3), "(ii) unfunded basic benefits guaranteed under this title, but such premium rates shall not exceed the limitations applicable to charges referred to in subparagraph (B)(i), or "(iii) total guaranteed basic benefits, but such premium rates shall not exceed the rates for additional charges referred to in subparagraph (B)(ii). If the corporation uses two or more of the rate bases described in this subparagraph, the premium rates shall be designed to produce approximately equal amounts of aggregate premium revenue from each of the rate bases used. "(D) For purposes of this paragraph, the corporation shall by regulation define the terms 'value of assets' and 'present value of the benefits of the plan which are guaranteed' in a manner consist-

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