Page:United States Statutes at Large Volume 101 Part 2.djvu/1156

 101 STAT. 1330-362

PUBLIC LAW 100-203—DEC. 22, 1987

and clauses (i)(II) and (ii) of section 4062(b)(l)(A) shall be applied separately with respect to each controlled group." (ii) CONFORMING AMENDMENTS.—Section 4068(a) of



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ERISA (29 U.S.C. 1368(a)) is amended by adding at the end thereof the following new sentence: "The preceding pj.QyjgjQjjg Qf ^jjjg subsection shall be applied in a manner consistent with the provisions of section 4064(d) relating to treatment of multiple controlled groups."

(3) PAYMENT BY CORPORATION TO PARTICIPANTS AND BENEFICIARIES OF RECOVERY PERCENTAGE OF OUTSTANDING AMOUNT OF BENKFIT LIABILITIES '

(A) IN GENERAL.—Section 4022 of ERISA (29 U.S.C. 1322) is amended— (i) by redesignating subsections (c) and (d) as subsections (d) and (e); and (ii) by inserting after subsection 0)) the following new subsection: "(c)(1) In addition to benefits paid under the preceding provisions of this section with respect to a terminated plan, the corporation shall pay the portion of the amount determined under paragraph (2) which is allocated with respect to each participant under section 4044(a), to such participant or (in the case of a deceased participant) to such participant's beneficiaries (including alternate payees, within the meaning of section 206(d)(3)(K)). "(2) The amount determined under this paragraph is an amount equal to the product derived by multiplying— "(A) the outstanding amount of benefit liabilities under the plan (including interest calculated from the termination date), by "(B) the applicable recovery ratio. "(3)(A) Except as provided in subparagraph (C), for purposes of this subsection, the term 'recovery ratio' means the average ratio, with respect to prior plan terminations described in subparagraph (B),of"(i) the value of the recovery of the corporation under section 4062, 4063, or 4064 in connection with such prior terminations, to "(ii) the amount of unfunded benefit liabilities under such plans as of the termination date in connection with such prior terminations. "(B) A plan termination described in this subparagraph is a termination with respect to which— "(i) the corporation has determined the value of recoveries under section 4062, 4063, or 4064, and "(ii) notices of intent to terminate were provided after December 17, 1987. "(C) In the case of a terminated plan with respect to which the outstanding amount of benefit liabilities exceeds $20,000,000, for purposes of this section, the term 'recovery ratio' means, with respect to the termination of such plan, the ratio of— "(i) the value of the recoveries of the corporation under y section 4062, 4063, or 4064 in connection with such plan, to I "(ii) the amount of unfunded benefit liabilities under such plan as of the termination date. ^, v...,,,

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