Page:United States Statutes at Large Volume 120.djvu/937

 120 STAT. 906

PUBLIC LAW 109–280—AUG. 17, 2006

‘‘(d) RULES FOR OPERATION OF PLAN DURING ADOPTION AND IMPROVEMENT PERIODS.— ‘‘(1) SPECIAL RULES FOR PLAN ADOPTION PERIOD.—During the funding plan adoption period— ‘‘(A) the plan sponsor may not accept a collective bargaining agreement or participation agreement with respect to the multiemployer plan that provides for— ‘‘(i) a reduction in the level of contributions for any participants, ‘‘(ii) a suspension of contributions with respect to any period of service, or ‘‘(iii) any new direct or indirect exclusion of younger or newly hired employees from plan participation, ‘‘(B) no amendment of the plan which increases the liabilities of the plan by reason of any increase in benefits, any change in the accrual of benefits, or any change in the rate at which benefits become nonforfeitable under the plan may be adopted unless the amendment is required as a condition of qualification under part I of subchapter D of chapter 1 or to comply with other applicable law, and ‘‘(C) in the case of a plan in seriously endangered status, the plan sponsor shall take all reasonable actions which are consistent with the terms of the plan and applicable law and which are expected, based on reasonable assumptions, to achieve— ‘‘(i) an increase in the plan’s funded percentage, and ‘‘(ii) postponement of an accumulated funding deficiency for at least 1 additional plan year. Actions under subparagraph (C) include applications for extensions of amortization periods under section 431(d), use of the shortfall funding method in making funding standard account computations, amendments to the plan’s benefit structure, reductions in future benefit accruals, and other reasonable actions consistent with the terms of the plan and applicable law. ‘‘(2) COMPLIANCE WITH FUNDING IMPROVEMENT PLAN.— ‘‘(A) IN GENERAL.—A plan may not be amended after the date of the adoption of a funding improvement plan so as to be inconsistent with the funding improvement plan. ‘‘(B) NO REDUCTION IN CONTRIBUTIONS.—A plan sponsor may not during any funding improvement period accept a collective bargaining agreement or participation agreement with respect to the multiemployer plan that provides for— ‘‘(i) a reduction in the level of contributions for any participants, ‘‘(ii) a suspension of contributions with respect to any period of service, or ‘‘(iii) any new direct or indirect exclusion of younger or newly hired employees from plan participation. ‘‘(C) SPECIAL RULES FOR BENEFIT INCREASES.—A plan may not be amended after the date of the adoption of

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