Page:United States Statutes at Large Volume 100 Part 1.djvu/291

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PUBLIC LAW 99-000—MMMM. DD, 1986

PUBLIC LAW 99-272—APR. 7, 1986

100 STAT. 255

such liability demonstrates to the satisfaction of the corporation that no person subject to such liability has any individual pre-tax profits for such person's fiscal year ending during such year. "(3) ALTERNATIVE ARRANGEMENTS.—The corporation and any

person liable under this section may agree to alternative arrangements for the satisfaction of liability to the corporation under this subsection. "(c) LIABILITY TO SECTION 4049 TRUST.— "(1) AMOUNT OF LIABILITY.—

"(A) IN GENERAL.—In any case in which there is an outstanding amount of benefit commitments under a plan terminated under section 4041(c) or 4042, a person described Ante, pp. 248, in subsection (a) shall be subject to liability under this ^53. subsection to the trust established under section 4041(c)(3)(B) (ii) or (iii) or section 4042(i) in connection with the terminated plan. Except as provided in subparagraph (B), the liability of such person under this subsection shall consist of the lesser of— "(i) 75 percent of the total outstanding amount of benefit commitments under the plan, or "(ii) 15 percent of the actuarial present value (determined as of the termination date on the basis of assumptions prescribed by the corporation for purposes of section 4044) of all benefit commitments under the 29 USC 1344. plan. "(B) SPECIAL RULE IN CASE OF SUBSEQUENT INSUFFI-

CIENCY.—For purposes of subparagraph (A)— "(i) PLANS INSUFFICIENT FOR GUARANTEED BENEFITS.—

In any case described in section 4041(c)(3)(C)(ii), actuarial present values shall be determined as of the date of the notice to the corporation (or the finding by the corporation) described in such section. "(ii) PLANS SUFFICIENT FOR GUARANTEED BENEFITS BUT INSUFFICIENT FOR BENEFIT ENTITLEMENTS.—In any C a s e

described in section 4041(c)(3)(C)(i) but not described in section 4041(c)(3)(C)(ii), actuarial present values shall be determined as of the date on which the final distribution of assets is completed. "(2) PAYMENT OF LIABILITY.—

"(A) GENERAL RULE.—Except as otherwise provided in this paragraph, payment of a person's liability under this subsection shall be made for liability payment years under commercially reasonable terms prescribed by the fiduciary designated by the corporation pursuant to section 4049(b)(1)(A). Such fiduciary and the liable persons assessed Post, p. 258. liability under this subsection shall make a reasonable effort to reach agreement on such commercially reasonable terms. "(B) SPECIAL RULE FOR PLANS WITH LOW AMOUNTS OF

LIABILITY.—In any case in which the amount described in paragraph (1)(A) is less than $100,000, the requirements of subparagraph (A) may be satisfied by payment of such liability over 10 liability payment years in equal annual installments (with interest at the rate determined under section 66210t)) of the Internal Revenue Code of 1954). The 26 USC 6621. corporation may, by regulation, increase the dollar amount