Page:United States Statutes at Large Volume 101 Part 2.djvu/1163

 PUBLIC LAW 100-203—DEC. 22, 1987

101 STAT. 1330-369

December 31, 1977,", and by adding at the end thereof the following new clause: "(iii) with respect to each plan year beginning after December 31, 1985, and before January 1, 1988, an amount equal to $8.50 for each individual who was a participant in such plan during the plan year, and". (f) EFFECTIVE DATE.—

(1) IN GENERAL.—The amendments made by this section shall K.^t apply to plan years beginning after December 31, 1987. (2) SEPARATE ACCOUNTING.—The amendments made by subsection (d) shall apply to fiscal years beginning after September 30, 1988.

Subpart D—Miscellaneous Provisions

29 USC 1305

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SEC. 9341. SECURITY REQUIRED UPON ADOPTION OF PLAN AMENDMENT RESULTING IN SIGNIFICANT UNDERFUNDING. (a) AMENDMENTS TO 1986 CODE,—^® Subsection (a) of section 401 of the 1986 Code (relating to requirements for qualification) is 26 USC 401. amended by inserting after paragraph (28) the following new paragraph: 100 "(29) SECURITY REQUIRED UPON ADOPTION OF PLAN AMENDMENT RESULTING IN SIGNIFICANT UNDERFUNDING.— "(A) IN GENERAL.—If—

"(i) a defined benefit plan (other than a multiemployer plan) adopts an amendment an effect of which is ,^ to increase current liability under the plan for a plan -.i'.GLiW-'-' year, and "(ii) the funded current liability percentage of the "'' plan for the plan year in which the amendment takes effect is less than 60 percent, including the amount of the unfunded current liability under the plan attrib, ^•„ „ utable to the plan amendment, V the trust of which such plan is a part shall not constitute a qualified trust under this subsection unless such amendment does not take effect until the contributing sponsor (or any member of the controlled group of the contributing sponsor) provides security to the plan. "(B) FORM OF SECURITY.—The security required under

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subparagraph (A) shall consist of— "(i) a bond issued by a corporate surety company that is an acceptable surety for purposes of section 412 of the Employee Retirement Income Security Act of 1974, ,.^ gj * "(ii) cash, or United States obligations which mature in 3 years or less, held in escrow by a bank or similar ... financial institution, or - gt,.:, "(iii) such other form of security as is satisfactory to the Secretary and the parties involved. ^^ "(C) AMOUNT OF SECURITY.—The security shall be in an amount equal to the excess of— h. J. •.,.- "(i) the lesser of— "(I) the amount of additional plan assets which would be necessary to increase the funded current •• Copy read "CODE—". »oo Copy read "paragraph:—".

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