Page:United States Statutes at Large Volume 94 Part 1.djvu/1306

 94 STAT. 1256

"Pay status participant." Active participants, numerical determination.

Alternate methods.

"Average number."

Average guaranteed benefit. Ante, p. 1210.

PUBLIC LAW 96-364—SEPT. 26, 1980

"(d) For purposes of this section, the overburden factor of a plan for the plan year is an amount equal to— "(1) the average number of pay status participants for the base plan year, reduced by "(2) the average of the number of active participants for the base plan year and for each of the 2 plan years preceding the base plan year. "(e) For purposes of this section— "(1) The term 'pay status participant' means, with respect to a plan, a participant receiving retirement benefits under the plan. "(2) The number of active participants for a plan year shall be the sum of— "(A) the number of active employees who are participants in the plan and on whose behalf contributions are required to be made during the plan year; "(B) the number of active employees who are not participants in the plan but who are in an employment unit covered by a collective bargaining agreement which requires the employees' employer to contribute to the plan, unless service in such employment unit was never covered under the plan or a predecessor thereof, and "(C) the total number of active employees attributed to employers who made payments to the plan for the plan year of withdrawal liability pursuant to part 1, determined by dividing— (i) the total amount of such payments, by "(ii) the amount equal to the total contributions received by the plan during the plan year divided by the average number of active employees who were participants in the plan during the plan year. The Secretary of the Treasury shall by regulation provide alternative methods of determining active participants where (by reason of irregular employment, contributions on a unit basis, or otherwise) this paragraph does not yield a representative basis for determining the credit. "(3) The term 'average number' means, with respect to pay status participants for a plan year, a number equal to one-half the sum of— "(A) the number with respect to the plan as of the beginning of the plan year, and (B) the number with respect to the plan as of the end of the plan year. "(4) The average guaranteed benefit paid is 12 times the average monthly pension payment guaranteed under section 4022A(c)(l) determined under the provisions of the plan in effect at the beginning of the first plan year in which the plan is in reorganization and without regard to section 4022A(c)(2). "(5) The first year in which the plan is in reorganization is the first of a period of 1 or more consecutive plan years in which the plan has been in reorganization not taking into account any plan years the plan was in reorganization prior to any period of 3 or more consecutive plan years in which the plan was not in reorganization. "(f)(1) Notwithstanding any other provision of this section, a plan is not eligible for an overburden credit for a plan year if the Secretary of the Treasury finds that the plan's current contribution base for the plan year was reduced, without a corresponding reduction in the plan's unfunded vested benefits attributable to pay status partici-

�