PUBLIC LAW 109–280—AUG. 17, 2006
120 STAT. 911
or beneficiary under subsection (b)(3)(D) for the initial critical year. ‘‘(iii) PLAN SPONSOR FLEXIBILITY.—The plan sponsor shall include in the schedules provided to the bargaining parties an allowance for funding the benefits of participants with respect to whom contributions are not currently required to be made, and shall reduce their benefits to the extent permitted under this title and considered appropriate by the plan sponsor based on the plan’s then current overall funding status. ‘‘(iv) ADJUSTABLE BENEFIT DEFINED.—For purposes of this paragraph, the term ‘adjustable benefit’ means— ‘‘(I) benefits, rights, and features under the plan, including post-retirement death benefits, 60month guarantees, disability benefits not yet in pay status, and similar benefits, ‘‘(II) any early retirement benefit or retirement-type subsidy (within the meaning of section 411(d)(6)(B)(i)) and any benefit payment option (other than the qualified joint and survivor annuity), and ‘‘(III) benefit increases that would not be eligible for a guarantee under section 4022A of the Employee Retirement Income Security Act of 1974 on the first day of initial critical year because the increases were adopted (or, if later, took effect) less than 60 months before such first day. ‘‘(B) NORMAL RETIREMENT BENEFITS PROTECTED.— Except as provided in subparagraph (A)(iv)(III), nothing in this paragraph shall be construed to permit a plan to reduce the level of a participant’s accrued benefit payable at normal retirement age. ‘‘(C) NOTICE REQUIREMENTS.— ‘‘(i) IN GENERAL.—No reduction may be made to adjustable benefits under subparagraph (A) unless notice of such reduction has been given at least 30 days before the general effective date of such reduction for all participants and beneficiaries to— ‘‘(I) plan participants and beneficiaries, ‘‘(II) each employer who has an obligation to contribute (within the meaning of section 4212(a)) under the plan, and ‘‘(III) each employee organization which, for purposes of collective bargaining, represents plan participants employed by such an employer. ‘‘(ii) CONTENT OF NOTICE.—The notice under clause (i) shall contain— ‘‘(I) sufficient information to enable participants and beneficiaries to understand the effect of any reduction on their benefits, including an estimate (on an annual or monthly basis) of any affected adjustable benefit that a participant or beneficiary would otherwise have been eligible for as of the general effective date described in clause (i), and
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