PUBLIC LAW 107-16^JUNE 7, 2001 115 STAT. 129 Subtitle E—Strengthening Pension Security and Enforcement PART I—GENERAL PROVISIONS SEC. 651. REPEAL OF 160 PERCENT OF CURRENT LIABILITY FUNDING LIMIT. (a) AMENDMENTS TO INTERNAL REVENUE CODE.— Section 412(c)(7) (relating to full-funding limitation) is amended— 26 USC 412. (1) by striking "the applicable percentage" in subparagraph (A)(i)(I) and inserting "in the case of plan years beginning before January 1, 2004, the applicable percentage"; and (2) by amending subparagraph (F) to read as follows: " (F) APPLICABLE PERCENTAGE.—For purposes of subparagraph (A)(i)(I), the applicable percentage shall be determined in accordance with the following table: "In the case of any plan year The applicable beginni ng in— percentage is— 2002 165 2003 170.". (b) AMENDMENT OF ERISA.— Section 302(c)(7) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1082(c)(7)) is amended— (1) by striking "the applicable percentage" in subparagraph (A)(i)(I) and inserting "in the case of plan years beginning before January 1, 2004, the applicable percentage", and (2) by amending subparagraph (F) to read as follows: " (F) APPLICABLE PERCENTAGE.— For purposes of subparagraph (A)(i)(I), the applicable percentage shall be determined in accordance with the following table: "In the case of any plan year The applicable beginning in calendar year— percentage is— 2002 165 2003 170.". (c) EFFECTIVE DATE.—The amendments made by this section Applicability. shall apply to plan years beginning after December 31, 2001. 26 USC 412 note. SEC. 652. MAXIMUM CONTRIBUTION DEDUCTION RULES MODIFIED AND APPLIED TO ALL DEFINED BENEFIT PLANS. (a) IN GENERAL. —Subparagraph (D) of section 404(a)(1) (relating to special rule in case of certain plans) is amended to read as follows: "(D) SPECIAL RULE IN CASE OF CERTAIN PLANS. — "(i) IN GENERAL.— In the case of any defined benefit plan, except as provided in regulations, the maximum amount deductible under the limitations of this paragraph shall not be less than the unfunded current liability determined under section 412(1). "(ii) PLANS WITH loo OR LESS PARTICIPANTS. — For purposes of this subparagraph, in the case of a plan which has 100 or less participants for the plan year, unfunded current liability shall not include the liability attributable to benefit increases for highly compensated employees (as defined in section 414(q)) resulting from a plan amendment which is made or
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