120 STAT. 924
liabilities of the plan by plan amendment (or otherwise provided in regulations provided by the Secretary) which, but for this paragraph, would occur during the plan year by reason of— (i) any increase in benefits, (ii) any change in the accrual of benefits, or (iii) any change in the rate at which benefits become nonforfeitable under the plan. (4) EXCEPTION FOR IMPUTED DISABILITY SERVICE.—Paragraphs (2) and (3) shall not apply to any accrual or increase with respect to imputed service provided to a participant during any period of the participant’s disability occurring on or after the effective date of the plan amendment providing the restrictions under paragraph (2) (or on or after July 26, 2005, in the case of the restrictions under paragraph (3)) if the participant— (A) was receiving disability benefits as of such date, or (B) was receiving sick pay and subsequently determined to be eligible for disability benefits as of such date. (c) DEFINITIONS.—For purposes of this section— (1) ELIGIBLE PLAN.—The term ‘‘eligible plan’’ means a defined benefit plan (other than a multiemployer plan) to which sections 302 of such Act and 412 of such Code applies which is sponsored by an employer— (A) which is a commercial airline passenger airline, or (B) the principal business of which is providing catering services to a commercial passenger airline. (2) APPLICABLE PLAN YEAR.—The term ‘‘applicable plan year’’ means each plan year to which the election under subsection (a)(1) applies under subsection (d)(1)(A). (d) ELECTIONS AND RELATED TERMS.— (1) YEARS FOR WHICH ELECTION MADE.— (A) ALTERNATIVE FUNDING SCHEDULE.—If an election under subsection (a)(1) was made with respect to an eligible plan, the plan sponsor may select either a plan year beginning in 2006 or a plan year beginning in 2007 as the first plan year to which such election applies. The election shall apply to such plan year and all subsequent years. The election shall be made— (i) not later than December 31, 2006, in the case of an election for a plan year beginning in 2006, or (ii) not later than December 31, 2007, in the case of an election for a plan year beginning in 2007. (B) 10 YEAR AMORTIZATION.—An election under subsection (a)(2) shall be made not later than December 31, 2007. (C) ELECTION OF NEW PLAN YEAR FOR ALTERNATIVE FUNDING SCHEDULE.—In the case of an election under subsection (a)(1), the plan sponsor may specify a new plan year in such election and the plan year of the plan may be changed to such new plan year without the approval of the Secretary of the Treasury. (2) MANNER OF ELECTION.—A plan sponsor shall make any election under subsection (a) in such manner as the Secretary
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