Page:United States Statutes at Large Volume 101 Part 2.djvu/1153

 PUBLIC LAW 100-203—DEC. 22, 1987

101 STAT. 1330-359

"(II) SECRETARIAL AUTHORITY.—If the Secretary finds that the lowest rate of interest permissible under subclause (I) is unreasonably high, the Secretary may prescribe a lower rate of interest, except that such rate may not be less than 80 percent of the average rate determined under subclause (I). "(iii) ASSUMPTIONS.—Notwithstanding subsection (c)(3)(A)(i), for purposes of this section and for purposes of determining current liability, the interest rate used under the plan shall be— "(I) determined without taking into account the experience of the plan and reasonable expectations, but "(11) consistent with the assumptions which reflect the purchase rates which would be used by insurance companies to satisfy the liabilities under the plan.".'** (f) EFFECTIVE DATE.—The amendments made by this section shall apply to years beginning after December 31, 1987.

26 USC 404 note,

Subpart B—Plan Terminations SEC. 9311. LIMITATIONS ON TERMINATION.

EMPLOYER

REVERSIONS

UPON

PLAN

(a) RESTRICTIONS ON REVERSIONS PURSUANT TO RECENTLY AMENDED PLANS.—

(1) IN GENERAL.—Section 4044(d) of ERISA (29 U.S.C. 1344(d)) is amended— (A) by redesignating paragraph (2) as paragraph (3); and (B) by inserting after paragraph (1) the following new paragraph: "(2)(A) In determining the extent to which a plan provides for the distribution of plan assets to the employer for purposes of paragraph (1)(C), any such provision, and any amendment increasing the amount which may be distributed to the employer, shall not be treated as effective before the end of the fifth calendar year following the date of the adoption of such provision or amendment. "(B) A distribution to the employer from a plan shall not be treated as failing to satisfy the requirements of this paragraph if the plan has been in effect for fewer than 5 years and the plan has provided for such a distribution since the effective date of the plan. "(C) Except as otherwise provided in regulations of the Secretary Regulations. of the Treasury, in any case in which a transaction described in section 208 occurs, subparagraph (A) shall continue to apply separately with respect to the amount of any assets transferred in such transaction. "(D) For purposes of this subsection, the term 'employer' includes any member of the controlled group of which the employer is a member. For purposes of the preceding sentence, the term 'controlled group' means any group treated as a single employer under subsection (b), (c), (m) or (o) of section 414 of the Internal Revenue Code of 1986." (2) TRANSITIONAL RULE.—The amendments made by para- 29 USC 1344 graph (1) shall apply, in the case of plans which, as of note. December 17, 1987, have no provision relating to the distribution of plan assets to the employer for purposes of section 4044(d)(l)(C) of the Employee Retirement Income Security Act of 1974, only with respect to plan amendments providing for the "•Copy read "plan."

91-194 O - 90 - 37: QL.3 Part 2

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