Page:United States Statutes at Large Volume 94 Part 1.djvu/1261

 PUBLIC LAW 96-364—SEPT. 26, 1980

94 STAT. 1211

"(c)(1) Except as provided in subsection (g), the monthly benefit of a participant or a beneficiary which is guaranteed under this section by the corporation with respect to a plan is the product of— "(A) 100 percent of the accrual rate up to $5, plus 75 percent of the lesser o— f "(i)$15,or "(ii) the accrual rate, if any, in excess of $5, and "(B) the number of the participant's years of credited service. "(2) Except as provided in paragraph (6) of this subsection and in subsection (g), in applying paragraph (1) with respect to a plan described in paragraph (5)(A), the term *65 percent' shall be substituted in paragraph (1)(A) for the term '75 percent'. Accrual rate. "(3) For purposes of this section, the accrual rate is— "(A) the monthly benefit of the participant or beneficiary which is described m subsection (a) and which is eligible for the corporation's guarantee under subsection (b), except that such benefit shall be— "(i) no greater than the monthly benefit which would be payable under the plan at normal retirement age in the form of a single life annuity, and "(ii) determined without regard to any reduction under section 411(a)(3)(E) of the Internal Revenue Code of 1954; Post, p. 1287. divided by "(B) the participant's years of credited service. Credited service. "(4) For purposes of this subsection— "(A) a year of credited service is a year in which the participant completed— "(i) a full year of participation in the plan, or "(ii) any period of service before participation which is credited for purposes of benefit accrual as the equivalent of a full year of participation; "(B) any year for which the participant is credited for purposes of benefit accrual with a fraction of the equivalent of a full year of participation shall be counted as such a fraction of a year of credited service; and "(C) years of credited service shall be determined by including service which may otherwise be disregarded by the plan under section 411(a)(3)(E) of the Internal Revenue Code of 1954. "(5)( A) A plan is described in this subparagraph if— "(i) the first plan year— "(I) in which the plan is insolvent under section 4245(b) or Post, p. 1259. Post, p. 1261. 4281(d)(2), and "(II) for which benefits are required to be suspended under section 4245, or reduced or suspended under section 4281, until they do not exceed the levels provided in this subsection, begins before the year 2000; and "(ii) the plan sponsor has not established to the satisfaction of the corporation that, during the period of 10 consecutive plan years (or of such lesser number of plan years for which the plan was maintained) immediately preceding the first plan year to which the minimum funding standards of section 412 of the Internal Revenue Code of 1954 apply, the total amount of the 26 USC 412. contributions required under the plan for each plan year was at least equal to the sum of— "(I) the normal cost for that plan year, and

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