Page:United States Statutes at Large Volume 94 Part 1.djvu/1327

 PUBLIC LAW 96-364—SEPT. 26, 1980

94 STAT. 1277

"(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 418(b)(4)(A)(ii) (determined without regard to section 418(b)(4)(B)(ii)),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 "(11) 25 years, to the extent such increase in value is attributable to other participants. "(2) FUNDING STANDARD REQUIREMENT.—For purposes of paragraph (1), the funding standard requirement for any plan year is an amount equal to the net charge to the funding standard account for such plan year (as defined in section 4180o)(2)). "(3) SPECIAL RULE FOR CERTAIN PLANS.—

"(A) IN GENERAL.—In the case of a plan described in section 42160)) of the Employee Retirement Income Security Act of 1974, if a plan amendment which increases benefits is Ante, p. 1234. 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 subparagraph (1)(B). "(B) EuGiBLE PLANS.—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 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) PERIOD.—The period determined under this subparagraph is the lesser of^

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