Page:United States Statutes at Large Volume 101 Part 2.djvu/1140

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101 STAT. 1330-346
PUBLIC LAW 100-000—MMMM. DD, 1987
101 STAT. 1330-346

101 STAT. 1330-346

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PUBLIC LAW 100-203—DEC. 22, 1987 "(ii) each required installment shall be increased by the greater of— "(I) the amount of benefits described in subsection (l)(5)(A)(i) paid during the 3-month period preceding the month in which the due date for such installment occurs, or "(ID 25 percent of the amount determined under subsection (l)(5)(A)(ii) for the plan year.

"(5) FISCAL YEARS AND SHORT YEARS.— "(A) FISCAL YEARS.—In applying this

subsection to a plan year beginning on any date other than January 1, there shall be substituted for the months specified in this subsection, the months which correspond thereto.

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"(B) SHORT PLAN YEAR.—This subsection shall be applied

to plan years of less than 12 months in accordance with regulations prescribed by the Secretary." (2) AMENDMENT TO ERISA.—Section 302 of ERISA (29 U.S.C. 1082) is amended by redesignating subsection (e) as subsection (f) and by inserting after subsection (d) the following new subsection: "(e) QUARTERLY CONTRIBUTIONS REQUIRED.—

"(1) IN GENERAL.—If a plan (other than a multiemployer plan) fails to pay the full amount of a required installment for any plan year, then the rate of interest charged to the funding standard account under subsection (b)(5) with respect to the amount of the underpa3mient for the period of the underpayment shall be equal to the greater of— "(A) 175 percent of the Federal mid-term rate (as in effect under section 1274 of the Internal Revenue Code of 1986 for the 1st month of such plan year), or "(B) the rate under subsection (b)(5). "(2) AMOUNT OF UNDERPAYMENT, PERIOD OF UNDERPAYMENT.—

For purposes of paragraph (1)— "(A) AMOUNT.—The amount of the underpa3rment shall be the excess of— "(i) the required installment, over "(ii) the amount (if any) of the installment contrib,,. uted to or under the plan on or before the due date for the installment. "(B) PERIOD OF UNDERPAYMENT.—The period for which any interest is charged under this subsection with respect to any portion of the underpayment shall run from the due date for the installment to the date on which such portion is contributed to or under the plan (determined without regard to subsection (c)(10)). " (C) ORDER OF CREDITING CONTRIBUTIONS.—For purposes of subparagraph (A)(ii), contributions shall be credited against unpaid required installments in the order in which such installments are required to be paid. "(3) NUMBER OF REQUIRED INSTALLMENTS; DUE DATES.—For

purposes of this subsection— "(A) PAYABLE IN 4 INSTALLMENTS.—There shall be 4 required installments for each plan year. "(B) TIME FOR PAYMENT OF INSTALLMENTS.—