Page:United States Statutes at Large Volume 94 Part 1.djvu/1305

 PUBLIC LAW 96-364—SEPT. 26, 1980

94 STAT. 1255

annual amount that would be necessary to complete the amortization schedule described in clause (i), or "(II) the rate for the plan year immediately preceding such subsequent plan year, plus 5 percent of such rate. "(C) The period determined under this subparagraph is the lesser of— "(i) 12 years, or "(ii) a period equal in length to the average of the remaining expected lives of all persons receiving benefits under the plan. "(4) Paragraph (1) shall not apply with respect to a plan, other than a plan described in paragraph (3), for the period of consecutive plan years in each of which the plan is in reorganization, beginning with a plan year in which occurs the earlier of the date of the adoption or the effective date of any amendment of the plan which increases benefits with respect to service performed before the plan year in which the adoption of the amendment occurred. "(e) In determining the minimum contribution requirement with respect to a plan for a plan year under subsection (b), the vested benefits charge may be adjusted to reflect a plan amendment reducing benefits under section 412(c)(8) of the Internal Revenue Code of 1954. 26 USC 412. "(f)(l) The Secretary of the Treasury may waive any accumulated funding deficiency under this section in accordance with the provisions of section 303(a). 29 USC 1083. "(2) Any waiver under paragraph (1) shall not be treated as a waived funding deficiency (within the meaning of section 303(c)). "(g) For purposes of making any determination under this part, the requirements of section 302(c)(3) shall apply. 29 USC 1082. "OVERBURDEN CREDIT AGAINST MINIMUM CONTRIBUTION REQUIREMENT

"SEC. 4244. (a) For purposes of determining the minimum contribu- 29 USC 1424. tion requirement under section 4243 (before the application of section 4243 (b)(2) or (d)) the plan sponsor of a plan which is overburdened for the plan year shall apply an overburden credit against the plan's minimum contribution requirement for the plan year (determined without regard to section 4243(b)(2) or (d) and without regard to this section). "(b) A plan is overburdened for a plan year if— "(1) the average number of pay status participants under the plan in the base plan year exceeds the average of the number of active participants in the base plan year and the 2 plan years preceding the base plan year, and "(2) the rate of employer contributions under the plan equals or exceeds the greater of— "(A) such rate for the preceding plan year, or ,, "(B) such rate for the plan year preceding the first year in which the plan is in reorganization. "(c) The amount of the overburden credit for a plan year is the Amount, p r o d u c t of—

"(1) one-half of the average guaranteed benefit paid for the base plan year, and "(2) the overburden factor for the plan year. The amount of the overburden credit for a plan year shall not exceed the amount of the minimum contribution requirement for such year (determined without regard to this section).

determination factors.

�