Page:United States Statutes at Large Volume 120.djvu/946

 PUBLIC LAW 109–280—AUG. 17, 2006

120 STAT. 915

‘‘(B) to the extent provided in regulations of the Secretary, 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) of the Employee Retirement Income Security Act of 1974. ‘‘(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), 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) EXCISE TAXES ON FAILURES RELATING TO MULTIEMPLOYER PLANS IN ENDANGERED OR CRITICAL STATUS.— (1) IN GENERAL.—Section 4971 of the Internal Revenue Code of 1986 is amended by redesignating subsection (g) as subsection (h) and by inserting after subsection (f) the following: ‘‘(g) MULTIEMPLOYER PLANS IN ENDANGERED OR CRITICAL STATUS.— ‘‘(1) IN GENERAL.—Except as provided in this subsection— ‘‘(A) no tax shall be imposed under this section for a taxable year with respect to a multiemployer plan if, for the plan years ending with or within the taxable year, the plan is in critical status pursuant to section 432, and ‘‘(B) any tax imposed under this subsection for a taxable year with respect to a multiemployer plan if, for the plan years ending with or within the taxable year, the plan is in endangered status pursuant to section 432 shall be in addition to any other tax imposed by this section. ‘‘(2) FAILURE TO COMPLY WITH FUNDING IMPROVEMENT OR REHABILITATION PLAN.— ‘‘(A) IN GENERAL.—If any funding improvement plan or rehabilitation plan in effect under section 432 with respect to a multiemployer plan requires an employer to make a contribution to the plan, there is hereby imposed a tax on each failure of the employer to make the required contribution within the time required under such plan. ‘‘(B) AMOUNT OF TAX.—The amount of the tax imposed by subparagraph (A) shall be equal to the amount of the required contribution the employer failed to make in a timely manner. ‘‘(C) LIABILITY FOR TAX.—The tax imposed by subparagraph (A) shall be paid by the employer responsible for contributing to or under the rehabilitation plan which fails to make the contribution. ‘‘(3) FAILURE TO MEET REQUIREMENTS FOR PLANS IN ENDANGERED OR CRITICAL STATUS.—If—

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26 USC 4971.

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