Page:United States Statutes at Large Volume 120.djvu/911

 120 STAT. 880

PUBLIC LAW 109–280—AUG. 17, 2006 ‘‘(D) SURCHARGE NOT TO APPLY UNTIL EMPLOYER RECEIVES NOTICE.—The surcharge under this paragraph shall not apply to an employer until 30 days after the employer has been notified by the plan sponsor that the plan is in critical status and that the surcharge is in effect. ‘‘(E) SURCHARGE NOT TO GENERATE INCREASED BENEFIT ACCRUALS.—Notwithstanding any provision of a plan to the contrary, the amount of any surcharge under this paragraph shall not be the basis for any benefit accrual under the plan. ‘‘(8) BENEFIT ADJUSTMENTS.— ‘‘(A) ADJUSTABLE BENEFITS.— ‘‘(i) IN GENERAL.—Notwithstanding section 204(g), the plan sponsor shall, subject to the notice requirements in subparagraph (C), make any reductions to adjustable benefits which the plan sponsor deems appropriate, based upon the outcome of collective bargaining over the schedule or schedules provided under paragraph (1)(B)(i). ‘‘(ii) EXCEPTION FOR RETIREES.—Except in the case of adjustable benefits described in clause (iv)(III), the plan sponsor of a plan in critical status shall not reduce adjustable benefits of any participant or beneficiary whose benefit commencement date is before the date on which the plan provides notice to the participant or beneficiary under subsection (b)(3)(D) for the initial critical year. ‘‘(iii) PLAN SPONSOR FLEXIBILITY.—The plan sponsor shall include in the schedules provided to the bargaining parties an allowance for funding the benefits of participants with respect to whom contributions are not currently required to be made, and shall reduce their benefits to the extent permitted under this title and considered appropriate by the plan sponsor based on the plan’s then current overall funding status. ‘‘(iv) ADJUSTABLE BENEFIT DEFINED.—For purposes of this paragraph, the term ‘adjustable benefit’ means— ‘‘(I) benefits, rights, and features under the plan, including post-retirement death benefits, 60month guarantees, disability benefits not yet in pay status, and similar benefits, ‘‘(II) any early retirement benefit or retirement-type subsidy (within the meaning of section 204(g)(2)(A)) and any benefit payment option (other than the qualified joint and survivor annuity), and ‘‘(III) benefit increases that would not be eligible for a guarantee under section 4022A on the first day of initial critical year because the increases were adopted (or, if later, took effect) less than 60 months before such first day. ‘‘(B) NORMAL RETIREMENT BENEFITS PROTECTED.— Except as provided in subparagraph (A)(iv)(III), nothing in this paragraph shall be construed to permit a plan

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