Page:United States Statutes at Large Volume 94 Part 1.djvu/1304

 94 STAT. 1254

26 USC 412.

Funding standard requiremen Ante, p. 1234.

PUBLIC LAW 96-364—SEPT. 26, 1980

"(ii) 107 percent of— "(I) if the plan was not in reorganization in the preceding plan year, the funding standard requirement for such preceding plan year, or "(II) if the plan was in reorganization in the preceding plan year, the sum of the amount determined under this subparagraph for the preceding plan year and the amount (if any) determined under subparagraph (B) for the preceding plan year, plus "(B) if for the plan year a change in benefits is first required to be considered in computing the charges under section 412(b)(2) (A) or (B) of the Internal Revenue Code of 1954, the sum of— "(i) the increase in normal cost for a plan year determined under the entry age normal funding method due to increases in benefits described in section 4241(b)(4)(A)(ii) (determined without regard to section 4241(b)(4)(B)(i)), and "(ii) the amount necessary to amortize in equal annual installments the increase in the value of vested benefits under the plan due to increases in benefits described in clause (i) over— "(I) 10 years, to the extent such increase in value is attributable to persons in pay status, or "(II) 25 years, to the extent such increase in value is attributable to other participants. funding Standard account for such plan year (as defined in section 424ia))(2)). "(3)(A) In the case of a plan described in section 4216(b), if a plan amendment which increases benefits is adopted after January 1, 1980— "(i) paragraph (1) shall apply only if the plan is a plan described in subparagraph (B), and "(ii) the amount under paragraph (1) shall be determined without regard to paragraph (1)(B). "(B) A plan is described in this subparagraph if— "(i) the rate of employer contributions under the plan for the first plan year beginning on or after the date on which an amendment increasing benefits is adopted, multiplied by the valuation contribution base for that plan year, equals or exceeds the sum of— "(I) the amount that would be necessary to amortize fully, in equal annual installments, by July 1, 1986, the unfunded vested benefits attributable to plan provisions in effect on July 1, 1977 (determined as of the last day of the base plan year); and "(II) the amount that would be necessary to amortize fully, in equal annual installments, over the period described in subparagraph (C), beginning with the first day of the first plan year beginning on or after the date on which the amendment is adopted, the unfunded vested benefits (determined as of the last day of the base plan year) attributable to each plan amendment after July 1, 1977; and "(ii) the rate of employer contributions for each subsequent plan year is not less than the lesser of— "(I) the rate which when multiplied by the valuation contribution base for that subsequent plan year produces the
 * (2) For purposes of paragraph (1), the funding standard requirement for any plan year is an amount equal to the net charge to the

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