Page:United States Statutes at Large Volume 120.djvu/1017

 120 STAT. 986

PUBLIC LAW 109–280—AUG. 17, 2006 the participant under the terms of the plan as in effect after the amendment is not less than the sum of— ‘‘(I) the participant’s accrued benefit for years of service before the effective date of the amendment, determined under the terms of the plan as in effect before the amendment, plus ‘‘(II) the participant’s accrued benefit for years of service after the effective date of the amendment, determined under the terms of the plan as in effect after the amendment. ‘‘(iv) SPECIAL RULES FOR EARLY RETIREMENT SUBSIDIES.—For purposes of clause (iii)(I), the plan shall credit the accumulation account or similar amount with the amount of any early retirement benefit or retirement-type subsidy for the plan year in which the participant retires if, as of such time, the participant has met the age, years of service, and other requirements under the plan for entitlement to such benefit or subsidy. ‘‘(v) APPLICABLE PLAN AMENDMENT.—For purposes of this subparagraph— ‘‘(I) IN GENERAL.—The term ‘applicable plan amendment’ means an amendment to a defined benefit plan which has the effect of converting the plan to an applicable defined benefit plan. ‘‘(II) SPECIAL RULE FOR COORDINATED BENEFITS.—If the benefits of 2 or more defined benefit plans established or maintained by an employer are coordinated in such a manner as to have the effect of the adoption of an amendment described in subclause (I), the sponsor of the defined benefit plan or plans providing for such coordination shall be treated as having adopted such a plan amendment as of the date such coordination begins. ‘‘(III) MULTIPLE AMENDMENTS.—The Secretary shall issue regulations to prevent the avoidance of the purposes of this subparagraph through the use of 2 or more plan amendments rather than a single amendment. ‘‘(IV) APPLICABLE DEFINED BENEFIT PLAN.—For purposes of this subparagraph, the term ‘applicable defined benefit plan’ has the meaning given such term by section 411(a)(13). ‘‘(vi) TERMINATION REQUIREMENTS.—An applicable defined benefit plan shall not be treated as meeting the requirements of clause (i) unless the plan provides that, upon the termination of the plan— ‘‘(I) if the interest credit rate (or an equivalent amount) under the plan is a variable rate, the rate of interest used to determine accrued benefits under the plan shall be equal to the average of the rates of interest used under the plan during the 5-year period ending on the termination date, and ‘‘(II) the interest rate and mortality table used to determine the amount of any benefit under the

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