Page:United States Statutes at Large Volume 102 Part 4.djvu/641

 PUBLIC LAW 100-647—NOV. 10, 1988

102 STAT. 3611

for any plan year, the amount necessary to satisfy the minimum funding standard provided by section 412 with respect to such plan for such plan year shall not be less than the unfunded current liability of such plan under section 412(1).". (3) Section 404(a)(l)(D) of the 1986 Code is amended by striking out "(without r^ard to any reduction by the credit balance in the funding standard account)", (c) AMENDMENTS RELATED TO SECTION 9301.— (1) Section 414(1) of the 1986 <3ode is amended by adding at the end thereof the following new paragraph: "(2) ALLOCATION OF ASSETS IN PLAN SPIN-OFFS, ETC.—

"(A) IN GENERAL.—In the case of a plan spin-off of a defined benefit plan, a trust which forms part of— "(i) the original plan, or "(ii) any plan spun off from such plan, shall not constitute a qualified trust under this section unless the applicable percentage of excess assets are allocated to each of such plans. "(B) APPLICABLE PERCENTAGE.—For purposes of subp£u-agraph (A), the term 'applicable percentage' means, with respect to each of the plans describied in clauses (i) and (ii) of subparagraph (A), the percentage determined by dividing— "(i) the excess (if any) of— "(1) the amount determined under section 412(c)(7)(A)(i) with respect to the plan, over "(II) the amount of the assets required to be allocated to the plan after the spin-off (without r^ard to this paragraph), by "(ii) the sum of the excess amounts determined separately under clause (i) for all such plans. "(CD) BIxcESS ASSETS.—For purposes of subparagraph (A), the term 'excess assets' means an amount equal to the excess (if any) of— "(i) the fair market value of the assets of the original plan immediately before the spin-off, over "(ii) the amount of assets required to be allocated after the spin-off to all plans (determined without r^ard to this paragraph). "(D) CERTAIN SPUN-OFF PLANS NOT TAKEN INTO ACCOXJNT.—

"(i) IN GENERAL.—^A plan involved in a spin-off which is described in clause (ii), (ill), or (iv) shall not be taken into account for purposes of this paragraph, except that the amount determined under subparagraph (C)(ii) shall be increased by the amount of assets allocated to such plan. "(ii)

PLANS

TRANSFERRED

OUT

OF CONTROLLED

GROUPS.—^A plan is described in this clause if, after such spin-off, such plan is maintained by an employer who is not a member of the same controlled group as the employer maintaining the original plan. "(iii) PLANS TRANSFERRED OUT OF BCULTEPLE EMPLOYER

PLANS.—^A plan as described in this clause if, after the spin-off, aiw employer maintaining such plan (and any member of the same controlled group as such employer) does not maintain any other pkm remaining after the spin-off which is also maintained by another employer (or member of the same controlled group as

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