Page:United States Statutes at Large Volume 94 Part 1.djvu/1321

 PUBLIC LAW 96-364—SEPT. 26, 1980

94 STAT. 1271

"(2) written notice of the amendment is provided to the corporation within 60 days after the amendment is adopted. "(c) An election described in subsection (a) shall be treated as being effective as of the date of the enactment of the Multiemployer Pension Plan Amendments Act of 1980." ^"^^' P 1208. TITLE II—AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1954 SEC. 201. AMENDMENT OF THE INTERNAL REVENUE CODE OP 1954.

Except as otherwise expressly provided, whenever in this title an amendment is expressed in terms of an amendment to a section or other provision, the reference is to a section or other provision of the Internal Revenue Code of 1954. 26 USC l. SEC. 202. MULTIEMPLOYER PLANS IN REORGANIZATION. (a) GENERAL RULE.—Part I of subchapter D of chapter 1 (relating to

pension, profit sharing, stock bonus plans, etc.) is amended by inserting at the end thereof the following new subpart: "Subpart C—Special Rules for Multiemployer Plans "Sec. 418. Reorganization status. "Sec. 418A. Notice of reorganization and funding requirements. "Sec. 418B. Minimum contribution requirement. "Sec. 4180. Overburden credit against minimum contribution requirement. "Sec. 418D. Adjustments in accrued benefits. "Sec. 418E. Insolvent plans. "SEC. 418. REORGANIZATION STATUS. 26 USC 418.

"(a) GENERAL RULE.—A multiemployer plan is in reorganization for a plan year if the plan's reorganization index for that year is greater than zero. "(b) REORGANIZATION INDEX.—For purposes of this subpart— "(1) IN GENERAL.—A plan's reorganization index for any plan year is the excess of— "(A) the vested benefits charge for such year, over "(B) the net charge to the funding standard account for such year. "(2) NET CHARGE TO FUNDING STANDARD ACCOUNT.—The net

charge to the funding standard account for any plan year is the excess (if any) of— "(A) the charges to the funding standard account for such year under section 412G))(2), over 26 USC 412. "(B) the credits to the funding standard account under section 412(b)(3)(B). "(3) VESTED BENEFITS CHARGE.—The vested benefits charge for any plan year is the amount which would be necessary to amortize the plan's unfunded vested benefits as of the end of the base plan year in equal annual installments— "(A) over 10 years, to the extent such benefits are attributable to persons in pay status, and "(B) over 25 years, to the extent such benefits are attributable to other participants. "(4) DETERMINATION OF VESTED BENEFITS CHARGE.—

"(A) IN GENERAL.—The vested benefits charge for a plan year shall be based on an actuarial valuation of the plan as of the end of the base plan year, adjusted to reflect— "(pany-

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