Page:United States Statutes at Large Volume 120.djvu/880

 PUBLIC LAW 109–280—AUG. 17, 2006

120 STAT. 849

years to which the limitations under either paragraph (1) or (2) or this paragraph applies. ‘‘(ii) TREATMENT OF BENEFICIARIES.—For purposes of this subparagraph, a participant and any beneficiary on his behalf (including an alternate payee, as defined in section 414(p)(8)) shall be treated as 1 participant. If the accrued benefit of a participant is allocated to such an alternate payee and 1 or more other persons, the amount under subparagraph (A) shall be allocated among such persons in the same manner as the accrued benefit is allocated unless the qualified domestic relations order (as defined in section 414(p)(1)(A)) provides otherwise. ‘‘(4) EXCEPTION.—This subsection shall not apply to any plan for any plan year if the terms of such plan (as in effect for the period beginning on September 1, 2005, and ending with such plan year) provide for no benefit accruals with respect to any participant during such period. ‘‘(5) PROHIBITED PAYMENT.—For purpose of this subsection, the term ‘prohibited payment’ means— ‘‘(A) any payment, in excess of the monthly amount paid under a single life annuity (plus any social security supplements described in the last sentence of section 411(a)(9)), to a participant or beneficiary whose annuity starting date (as defined in section 417(f)(2)) occurs during any period a limitation under paragraph (1) or (2) is in effect, ‘‘(B) any payment for the purchase of an irrevocable commitment from an insurer to pay benefits, and ‘‘(C) any other payment specified by the Secretary by regulations. ‘‘(e) LIMITATION ON BENEFIT ACCRUALS FOR PLANS WITH SEVERE FUNDING SHORTFALLS.— ‘‘(1) IN GENERAL.—A defined benefit plan which is a singleemployer plan shall provide that, in any case in which the plan’s adjusted funding target attainment percentage for a plan year is less than 60 percent, benefit accruals under the plan shall cease as of the valuation date for the plan year. ‘‘(2) EXEMPTION.—Paragraph (1) shall cease to apply with respect to any plan year, effective as of the first day of the plan year, upon payment by the plan sponsor of a contribution (in addition to any minimum required contribution under section 430) equal to the amount sufficient to result in an adjusted funding target attainment percentage of 60 percent. ‘‘(f) RULES RELATING TO CONTRIBUTIONS REQUIRED TO AVOID BENEFIT LIMITATIONS.— ‘‘(1) SECURITY MAY BE PROVIDED.— ‘‘(A) IN GENERAL.—For purposes of this section, the adjusted funding target attainment percentage shall be determined by treating as an asset of the plan any security provided by a plan sponsor in a form meeting the requirements of subparagraph (B). ‘‘(B) FORM OF SECURITY.—The security required under subparagraph (A) shall consist of— ‘‘(i) a bond issued by a corporate surety company that is an acceptable surety for purposes of section

VerDate 14-DEC-2004

10:20 Jul 12, 2007

Jkt 059194

PO 00001

Frm 00847

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL001.109

Effective dates.

APPS06

PsN: PUBL001

�