Page:United States Statutes at Large Volume 124.djvu/1316

 124 STAT. 1290 PUBLIC LAW 111–192—JUNE 25, 2010 described in subparagraph (A) (determined without regard to this paragraph). ‘‘(iv) MERGERS AND ACQUISITIONS.—The Secretary of the Treasury shall prescribe rules for the application of paragraph (2)(D) and this paragraph in any case where there is a merger or acquisition involving a plan sponsor making the election under paragraph (2)(D).’’. (3) CONFORMING AMENDMENTS.—Section 303 of such Act (29 U.S.C. 1083) is amended— (A) in subsection (c)(1), by striking ‘‘the shortfall amortization bases for such plan year and each of the 6 preceding plan years’’ and inserting ‘‘any shortfall amortization base which has not been fully amortized under this subsection’’, and (B) in subsection (j)(3), by adding at the end the fol- lowing: ‘‘(F) QUARTERLY CONTRIBUTIONS NOT TO INCLUDE CER- TAIN INCREASED CONTRIBUTIONS.—Subparagraph (D) shall be applied without regard to any increase under subsection (c)(7).’’. (b) AMENDMENTS TO INTERNAL REVENUE CODE OF 1986.— (1) IN GENERAL.—Paragraph (2) of section 430(c) is amended by adding at the end the following subparagraph: ‘‘(D) SPECIAL ELECTION FOR ELIGIBLE PLAN YEARS.— ‘‘(i) IN GENERAL.—If a plan sponsor elects to apply this subparagraph with respect to the shortfall amortization base of a plan for any eligible plan year (in this subparagraph and paragraph (7) referred to as an ‘election year’), then, notwithstanding subpara- graphs (A) and (B)— ‘‘(I) the shortfall amortization installments with respect to such base shall be determined under clause (ii) or (iii), whichever is specified in the election, and ‘‘(II) the shortfall amortization installment for any plan year in the 9-plan-year period described in clause (ii) or the 15-plan-year period described in clause (iii), respectively, with respect to such shortfall amortization base is the annual install- ment determined under the applicable clause for that year for that base. ‘‘(ii) 2 PLUS 7 AMORTIZATION SCHEDULE.—The short- fall amortization installments determined under this clause are— ‘‘(I) in the case of the first 2 plan years in the 9-plan-year period beginning with the election year, interest on the shortfall amortization base of the plan for the election year (determined using the effective interest rate for the plan for the elec- tion year), and ‘‘(II) in the case of the last 7 plan years in such 9-plan-year period, the amounts necessary to amortize the remaining balance of the shortfall amortization base of the plan for the election year in level annual installments over such last 7 plan Applicability. 26 USC 430. Applicability.