Page:United States Statutes at Large Volume 108 Part 6.djvu/465

 -iS^>? "/ PUBLIC LAW 103-465—DEC. 8, 1994 108 STAT. 5033 ments as the Secretary of the Treasury shall provide in regulations. "(v) LIQUID ASSETS.— The term liquid assets' means cash, marketable securities and such other assets as specified by the Secretary of the Treasury in regulations. •^vi) QUARTER.— The term 'qusirter' means, with respect to any required installment, the 3-month period preceding the month in which the due date for such installment occurs. "(F) REGULATIONS.—The Secretary of the Treasury may prescribe such regulations as are necessary to carry out this paragraph." (B) LIMITATION ON DISTRIBUTIONS OTHER THAN LIFE ANNUITIES PAID BY THE PLAN.— (i) Section 206 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1056) is amended by adding at the end the following new subsection: " (e) LIMITATION ON DISTRIBUTIONS OTHER THAN LIFE ANNUITIES PAID BY THE PLAN.— "(1) IN GENERAL. — Notwithstanding any other provision of this part, the fiduciary of a pension plan that is subject to the additional funding requirements of section 302(d) shall not permit a prohibited payment to be made fix)m a plan during a period in which such plan has a Hquidity shortfall (as defined in section 302(6)(5)). " (2) PROHIBITED PAYMENT. —For purposes of paragraph (1), the term prohibited payment' means— "(A) any payment, in excess of the monthly amount paid under a single Hfe annuity (plus any social security supplements described in the last sentence of section 204(b)(1)(G)), to a participsint or beneficiary whose annuity starting date (as defined in section 205(h)(2)), that occurs during the period referred to in paragraph (1), "(B) any payment for the purcnase of an irrevocable commitment from an insurer to pay benefits, and "(C) any other payment specified by the Secretary of the Treasury by regulations. "(3) PERIOD OF SHORTFALL. —For purposes of this subsection, a plan has a hquidity shortfall during the period that there is an underpayment of an installment under section 302(e) by reason of paragraph (5)(A) thereof " (4) COORDINATION WITII OTHER PROVISIONS.— Compliance with this subsection shall not constitute a violation of any other provision of this Act" (ii) Section 502 of such Act is amended by adding 29 USC 1132. at the end a new subsection (m) to read as follows: "(m) In the case of a distribution to a pension plan participant or beneficiary in violation of section 206(e) by a plan fiduciary, the Secretary shall assess a penalty against such fiduciary in an amount equal to the value oi the distribution. Such penalty shall not exceed $10,000 for each such distribution." (10) AMENDMENT TO DEFINITION OF FULL-FUNDING LIMITATION.— (A) Subparagraph (A) of section 302(c)(7) of such Act 29 USC 1082. is amended by inserting "(including the expected increase

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