Page:United States Statutes at Large Volume 101 Part 2.djvu/1149

 PUBLIC LAW 100-203—DEC. 22, 1987

101 STAT. 1330-355

tion charge described in subsection 03X2)(C) for any plan year shall be— "(A) in the case of a plan other than a multiemployer plan, the greater of (i) 150 percent of the Federal midterm rate (as in effect under section 1274 of the Internal Revenue Code of 1986 for the 1st month of such plan year), or (ii) the rate of interest used under the plan in determining costs, and "(B) in the case of a multiemployer plan, the rate determined under section 6621(b)." (B) Subsection (a) of section 304 of ERISA (29 U.S.C. 1084(a)) is amended by striking out the last sentence and inserting in lieu thereof the following new sentence: "In the case of a plan other than a multiemployer plan, the interest rate applicable for any plan year under any arrangement entered into by the Secretary in connection with an extension granted under this subsection shall be the greater of (A) 150 percent of the Federal mid-term rate (as in effect under section 1274 of the Internal Revenue Code of 1986 for the 1st month of such plan year), or (B) the rate of interest used under the plan in determining costs. In the case of a multiemployer plan, such rate shall be the rate determined under section 6621(b) of such Code." (d) NOTICE TO PARTICIPANTS OF APPLICATION FOR FUNDING WAIVERS.— (1) AMENDMENT TO 1986 CODE.—Section 412 (fK4)(A) of the 1986

Code (relating to advance notice) is amended by striking out 26 USC 412. "plan." and inserting in lieu thereof "plan, and each participant, beneficiary, and alternate payee (within the meaning of section 414(p)(8)). Such notice shall include a description of the extent to which the plan is funded for benefits which are guaranteed under title IV of such Act and the benefit liabilities.". (2) AMENDMENT TO ERISA.—Section 303(e)(l) of ERISA (relating to advance notice) (29 U.S.C. 1083(e)(l)) is amended by striking out "plan." and inserting in lieu thereof "plan, and each affected party (as defined in section 4001(a)(21)) other than the Pension Benefit Guaranty Corporation. Such notice shall include a description of the extent to which the plan is funded for benefits which are guaranteed under title IV and the benefit liabilities.". (e) DECREASE IN AMOUNT OF DEFICIENCIES REQUIRED BEFORE SECURITY REQUIRED.— (1) AMENDMENT TO 1986 CODE.—Subparagraph (C) of section

412 (0(3) is amended by striking out "$2,000,000" and inserting in lieu thereof "$1,000,000". (2) AMENDMENT TO ERISA.—Section 306(c)(l) of ERISA (29 U.S.C. 1085a(c)(l)) is amended by striking out "$2,000,000" and inserting in lieu thereof "$1,000,000". (f) EFFECTIVE DATES.— (1) IN GENERAL.—Except as provided in this subsection, the amendments made by this section shall apply in the case of— (A) any application submitted after December 17, 1987, and (B) any waiver granted pursuant to such an application. (2) SPECIAL RULE FOR APPLICATION REQUIREMENT.—

26 USC 412 note.

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