Page:United States Statutes at Large Volume 124.djvu/1321

 124 STAT. 1295 PUBLIC LAW 111–192—JUNE 25, 2010 under clause (i)(II) shall be increased by an amount equal to— ‘‘(I) such dollar amount, multiplied by ‘‘(II) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year, deter- mined by substituting ‘calendar year 2009’ for ‘cal- endar year 1992’ in subparagraph (B) thereof. If the amount of any increase under clause (i) is not a multiple of $1,000, such increase shall be rounded to the next lowest multiple of $1,000. ‘‘(E) EXTRAORDINARY DIVIDENDS AND REDEMPTIONS.— ‘‘(i) IN GENERAL.—The amount determined under this subparagraph for any plan year is the excess (if any) of the sum of the dividends declared during the plan year by the plan sponsor plus the aggregate amount paid for the redemption of stock of the plan sponsor redeemed during the plan year over the greater of— ‘‘(I) the adjusted net income (within the meaning of section 4043 of the Employee Retire- ment Income Security Act of 1974) of the plan sponsor for the preceding plan year, determined without regard to any reduction by reason of interest, taxes, depreciation, or amortization, or ‘‘(II) in the case of a plan sponsor that deter- mined and declared dividends in the same manner for at least 5 consecutive years immediately pre- ceding such plan year, the aggregate amount of dividends determined and declared for such plan year using such manner. ‘‘(ii) ONLY CERTAIN POST-2009 DIVIDENDS AND REDEMPTIONS COUNTED.—For purposes of clause (i), there shall only be taken into account dividends declared, and redemptions occurring, after February 28, 2010. ‘‘(iii) EXCEPTION FOR INTRA-GROUP DIVIDENDS.— Dividends paid by one member of a controlled group (as defined in section 412(d)(3)) to another member of such group shall not be taken into account under clause (i). ‘‘(iv) EXCEPTION FOR CERTAIN REDEMPTIONS.— Redemptions that are made pursuant to a plan main- tained with respect to employees, or that are made on account of the death, disability, or termination of employment of an employee or shareholder, shall not be taken into account under clause (i). ‘‘(v) EXCEPTION FOR CERTAIN PREFERRED STOCK.— ‘‘(I) IN GENERAL.—Dividends and redemptions with respect to applicable preferred stock shall not be taken into account under clause (i) to the extent that dividends accrue with respect to such stock at a specified rate in all events and without regard to the plan sponsor’s income, and interest accrues on any unpaid dividends with respect to such stock.