Page:United States Statutes at Large Volume 120.djvu/930

 PUBLIC LAW 109–280—AUG. 17, 2006

120 STAT. 899

(and any modification thereof) shall be applied and administered under the rules of such sections as in effect before the enactment of this Act, including the use of the rate of interest determined under section 6621(b) of such Code. SEC. 212. ADDITIONAL FUNDING RULES FOR MULTIEMPLOYER PLANS IN ENDANGERED OR CRITICAL STATUS.

(a) IN GENERAL.—Subpart A of part III of subchapter D of chapter 1 of the Internal Revenue Code of 1986 (as amended by this Act) is amended by inserting after section 431 the following new section: ‘‘SEC. 432. ADDITIONAL FUNDING RULES FOR MULTIEMPLOYER PLANS IN ENDANGERED STATUS OR CRITICAL STATUS.

‘‘(a) GENERAL RULE.—For purposes of this part, in the case of a multiemployer plan in effect on July 16, 2006— ‘‘(1) if the plan is in endangered status— ‘‘(A) the plan sponsor shall adopt and implement a funding improvement plan in accordance with the requirements of subsection (c), and ‘‘(B) the requirements of subsection (d) shall apply during the funding plan adoption period and the funding improvement period, and ‘‘(2) if the plan is in critical status— ‘‘(A) the plan sponsor shall adopt and implement a rehabilitation plan in accordance with the requirements of subsection (e), and ‘‘(B) the requirements of subsection (f) shall apply during the rehabilitation plan adoption period and the rehabilitation period. ‘‘(b) DETERMINATION OF ENDANGERED AND CRITICAL STATUS.— For purposes of this section— ‘‘(1) ENDANGERED STATUS.—A multiemployer plan is in endangered status for a plan year if, as determined by the plan actuary under paragraph (3), the plan is not in critical status for the plan year and, as of the beginning of the plan year, either— ‘‘(A) the plan’s funded percentage for such plan year is less than 80 percent, or ‘‘(B) the plan has an accumulated funding deficiency for such plan year, or is projected to have such an accumulated funding deficiency for any of the 6 succeeding plan years, taking into account any extension of amortization periods under section 431(d). For purposes of this section, a plan shall be treated as in seriously endangered status for a plan year if the plan is described in both subparagraphs (A) and (B). ‘‘(2) CRITICAL STATUS.—A multiemployer plan is in critical status for a plan year if, as determined by the plan actuary under paragraph (3), the plan is described in 1 or more of the following subparagraphs as of the beginning of the plan year: ‘‘(A) A plan is described in this subparagraph if— ‘‘(i) the funded percentage of the plan is less than 65 percent, and ‘‘(ii) the sum of— ‘‘(I) the fair market value of plan assets, plus

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26 USC 432.

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Applicability.

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