Page:United States Statutes at Large Volume 88 Part 1.djvu/958

 914

PUBLIC LAW 93-406-SEPT. 2, 1974

[88 STAT.

SEC. 1013. MINIMUM FUNDING STANDARDS.

(a) IN GENERAL.—Subpart B of part I of subchapter D of chapter 1 is amended by adding after section 411 the following new section: 26 USC 4 1 2.

26 USC 4 0 1,

Post, p p. 969, 991. 26 USC 4 0 5.

"Accumulated funding deficiency." Post, p. 9 2 0.

"SEC. 412. MINIMUM FUNDING STANDARDS, " (a) GENERAL RULE.—Except as provided in subsection (h), this

section applies to a plan if, for any plan year beginning on or after the effective date of this section for such plan— "(1) such plan included a trust which qualified (or was determined by the Secretary or his delegate to have qualified) under section 401(a), or "(2) such plan satisfied (or was determined by the Secretary or his delegate to have satisfied) the requirements of section 403 (a) or 405(a). A plan to which this section applies shall have satisfied the minimum funding standard for such plan for a plan year if as of the end of such plan year, the plan does not have an accumulated funding deficiency. For purposes of this section and section 4971, the term 'accumulated funding deficiency' means for any plan the excess of the total charges to the funding standard account for all plan years (beginning with the first plan year to which this section applies) over the total credits to such account for such years or, if less, the excess of the total charges to the alternative minimum funding standard account for such plan years over the total credits to such account for such years. "(b)

FUNDING STANDARD ACCOUNT.— "(1) ACCOUNT REQUIRED.—Each plan to which this section

applies shall establish and maintain a funding standard account. Such account shall be credited and charged solely as provided in this section. "(2) CHARGES TO ACCOUNT.—For a plan year, the funding standard account shall be charged with the sum of— " (A) the normal cost of the plan for the plan year, " (B) the amounts necessary to amortize m equal annual installments (until fully amortized) — " (i) in the case of a plan in existence on January 1, 1974, the unfunded past service liability under the plan on the first day of the first plan year to which this section applies, over a period of 40 plan years, "(ii) in the case of a plan which comes into existence ' after January 1, 1974, the unfunded past service liability under the plan on the first day of the first plan year to which this section applies, over a period of 30 plan years (40 plan years in the case of a multiemployer plan), "(iii) separately, with respect to each plan year, the net increase (if any) in unfunded past service liability under the plan arising from plan amendments adopted in such year, over a period of 30 plan years (40 plan years in the case of a multiemployer plan), "(iv) separately, with respect to each plan year, the net experience loss (if any) under the plan, over a period of 15 plan years (20 plan years in the case of a multiemployer plan), and " (v) separately, with respect to each plan year, the net loss (if any) resulting from changes in actuarial assumptions used under the plan, over a period of 30 plan years, " (C) the amount necessary to amortize each waived funding deficiency (within the meaning of subsection (d)(3)) for each prior plan year in equal annual installments (until fully amortized) over a period of 15 plan years, and

�