Page:United States Statutes at Large Volume 120.djvu/915

 120 STAT. 884

PUBLIC LAW 109–280—AUG. 17, 2006

‘‘(A) the numerator of which is the value of the plan’s assets, as determined under section 304(c)(2), and ‘‘(B) the denominator of which is the accrued liability of the plan, determined using actuarial assumptions described in section 304(c)(3). ‘‘(3) ACCUMULATED FUNDING DEFICIENCY.—The term ‘accumulated funding deficiency’ has the meaning given such term in section 304(a). ‘‘(4) ACTIVE PARTICIPANT.—The term ‘active participant’ means, in connection with a multiemployer plan, a participant who is in covered service under the plan. ‘‘(5) INACTIVE PARTICIPANT.—The term ‘inactive participant’ means, in connection with a multiemployer plan, a participant, or the beneficiary or alternate payee of a participant, who— ‘‘(A) is not in covered service under the plan, and ‘‘(B) is in pay status under the plan or has a nonforfeitable right to benefits under the plan. ‘‘(6) PAY STATUS.—A person is in pay status under a multiemployer plan if— ‘‘(A) at any time during the current plan year, such person is a participant or beneficiary under the plan and is paid an early, late, normal, or disability retirement benefit under the plan (or a death benefit under the plan related to a retirement benefit), or ‘‘(B) to the extent provided in regulations of the Secretary of the Treasury, such person is entitled to such a benefit under the plan. ‘‘(7) OBLIGATION TO CONTRIBUTE.—The term ‘obligation to contribute’ has the meaning given such term under section 4212(a). ‘‘(8) ACTUARIAL METHOD.—Notwithstanding any other provision of this section, the actuary’s determinations with respect to a plan’s normal cost, actuarial accrued liability, and improvements in a plan’s funded percentage under this section shall be based upon the unit credit funding method (whether or not that method is used for the plan’s actuarial valuation). ‘‘(9) PLAN SPONSOR.—In the case of a plan described under section 404(c) of the Internal Revenue Code of 1986, or a continuation of such a plan, the term ‘plan sponsor’ means the bargaining parties described under paragraph (1). ‘‘(10) BENEFIT COMMENCEMENT DATE.—The term ‘benefit commencement date’ means the annuity starting date (or in the case of a retroactive annuity starting date, the date on which benefit payments begin).’’. (b) ENFORCEMENT.—Section 502 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1132) is amended— (1) in subsection (a)(6) by striking ‘‘(6), or (7)’’ and inserting ‘‘(6), (7), or (8)’’; (2) by redesignating subsection (c)(8) as subsection (c)(9); and (3) by inserting after subsection (c)(7) the following new paragraph: ‘‘(8) The Secretary may assess against any plan sponsor of a multiemployer plan a civil penalty of not more than $1,100 per day— ‘‘(A) for each violation by such sponsor of the requirement under section 305 to adopt by the deadline established

VerDate 14-DEC-2004

10:20 Jul 12, 2007

Jkt 059194

PO 00001

Frm 00882

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL001.109

APPS06

PsN: PUBL001

�