120 STAT. 926
29 USC 1322.
VerDate 14-DEC-2004
10:20 Jul 12, 2007
PUBLIC LAW 109–280—AUG. 17, 2006
under section 303 of such Act or section 430 of such Code, as of the day before the first day of the first applicable plan year, shall be reduced to zero. (2) WAIVED FUNDING DEFICIENCIES.—Any waived funding deficiency under sections 302 and 303 of such Act or section 412 of such Code, as in effect before the date of enactment of this section, shall be deemed satisfied as of the first day of the first applicable plan year and the amount of such waived funding deficiency shall be taken into account in determining the plan’s unfunded liability under subsection (e)(3)(A). In the case of a plan amendment adopted to satisfy the requirements of subsection (b)(2), the plan shall not be deemed to violate section 304(b) of such Act or section 412(f) of such Code, as so in effect, by reason of such amendment or any increase in benefits provided to such plan’s participants under a separate plan that is a defined contribution plan or a multiemployer plan. (g) OTHER RULES FOR PLANS MAKING ELECTION UNDER THIS SECTION.— (1) SUCCESSOR PLANS TO CERTAIN PLANS.—If— (A) an election under paragraph (1) or (2) of subsection (a) is in effect with respect to any eligible plan, and (B) the eligible plan is maintained by an employer that establishes or maintains 1 or more other defined benefit plans (other than any multiemployer plan), and such other plans in combination provide benefit accruals to any substantial number of successor employees, the Secretary of the Treasury may, in the Secretary’s discretion, determine that any trust of which any other such plan is a part does not constitute a qualified trust under section 401(a) of the Internal Revenue Code of 1986 unless all benefit obligations of the eligible plan have been satisfied. For purposes of this paragraph, the term ‘‘successor employee’’ means any employee who is or was covered by the eligible plan and any employees who perform substantially the same type of work with respect to the same business operations as an employee covered by such eligible plan. (2) SPECIAL RULES FOR TERMINATIONS.— (A) PBGC LIABILITY LIMITED.—Section 4022 of the Employee Retirement Income Security Act of 1974, as amended by this Act, is amended by adding at the end the following new subsection: ‘‘(h) SPECIAL RULE FOR PLANS ELECTING CERTAIN FUNDING REQUIREMENTS.—If any plan makes an election under section 402(a)(1) of the Pension Protection Act of 2006 and is terminated effective before the end of the 10-year period beginning on the first day of the first applicable plan year— ‘‘(1) this section shall be applied— ‘‘(A) by treating the first day of the first applicable plan year as the termination date of the plan, and ‘‘(B) by determining the amount of guaranteed benefits on the basis of plan assets and liabilities as of such assumed termination date, and ‘‘(2) notwithstanding section 4044(a), plan assets shall first be allocated to pay the amount, if any, by which— ‘‘(A) the amount of guaranteed benefits under this section (determined without regard to paragraph (1) and on
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