Page:United States Statutes at Large Volume 100 Part 1.djvu/294

 100 STAT. 258

PUBLIC LAW 99-272—APR. 7, 1986 (subject to the last sentence of subsection (a)(1)(A)) be deductible under this section when paid. "(B) CONTRIBUTIONS UNDER STANDARD TERMINATIONS.—

Ante, p. 244.

29 USC 1322.

Subparagraph (A) shall not apply (and subsection (a)(1)(A) shall apply) to any payments described in paragraph (1) which are paid to terminate a plan under section 4041(b) of the Employee Retirement Income Security Act of 1974 to the extent such payments result in the assets of the plan being in excess of the total amount of benefits under such plan which are guaranteed by the Pension Benefit Guaranty Corporation under section 4022 of such Act. "(C) CONTRIBUTIONS TO CERTAIN TRUSTS.—Subparagraph

29 USC 1362.

(A) shall not apply to any payment described in paragraph (1) which is made under section 4062(c) of such Act and such payment shall be deductible at such time as may be prescribed in regulations which are based on principles similar to the principles of subsection (a)(1)(A).". (2) REFERENCES TO ERISA.—Subsection (g) of section 404 of the

26 USC 404; ante, p. 257.

Internal Revenue Code of 1954 is amended by adding at the end thereof the following new paragraph: "(4) REFERENCES TO EMPLOYEE RETIREMENT INCOME SECURITY

Ante, p. 237. 26 USC 404 note.

ACT OF 1974.—For purposes of this subsection, any reference to a section of the Employee Retirement Income Security Act of 1974 shall be treated as a reference to such section as in effect on the date of the enactment of the Single-Employer Pension Plan Amendments Act of 1986.". (3) EFFECTIVE DATE.—The amendments made by this subsection shall apply to payments made after January 1, 1986, in taxable years ending after such date. SEC. 11012. DISTRIBUTION TO PARTICIPANTS AND BENEFICIARIES OF LIABILITY PAYMENTS TO SECTION 4049 TRUST.

(a) IN GENERAL.—Subtitle C of title IV is amended by adding at the end thereof the following new section: "DISTRIBUTION TO PARTICIPANTS AND BENEFICIARIES OF LIABILITY PAYMENTS TO SECTION 4049 TRUST

29 USC 1349. Ante, p. 248. 29 USC 1362.

"SEC. 4049. (a) TRUST REQUIREMENTS.—The requirements of this

section apply to a trust established by the corporation in connection with a terminated plan pursuant to section 4041(c)(3)(B) (ii) or (iii). The trust shall be used exclusively for— "(1) receiving liability payments under section 4062(c) from the persons who were (as of the termination date) contributing sponsors of the terminated plan and members of their controlled groups, "(2) making distributions as provided in this section to the persons who were (as of the termination date) participants and beneficiaries under the terminated plan, and "(3) defraying the reasonable administrative expenses incurred in carrying out responsibilities under this section. The trust shall be maintained for such period of time as is necessary to receive all liability payments required to be made to the trust under section 4062(c) with respect to the terminated plan and to make all distributions required to be made to participants and beneficiaries under this section with respect to the terminated plan.

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