§ 412. Minimum funding standards
(a) Requirement to meet minimum funding
standard
(1) In general
A plan to which this section applies shall
satisfy the minimum funding standard appli-
cable to the plan for any plan year.
(2) Minimum funding standard
For purposes of paragraph (1), a plan shall be
treated as satisfying the minimum funding
standard for a plan year if—
(A) in the case of a defined benefit plan
which is not a multiemployer plan or a
CSEC plan, the employer makes contribu-
tions to or under the plan for the plan year
which, in the aggregate, are not less than
the minimum required contribution deter-
mined under section 430 for the plan for the
plan year,
(B) in the case of a money purchase plan
which is not a multiemployer plan, the em-
ployer makes contributions to or under the
plan for the plan year which are required
under the terms of the plan,
(C) in the case of a multiemployer plan,
the employers make contributions to or
under the plan for any plan year which, in
the aggregate, are sufficient to ensure that
the plan does not have an accumulated fund-
ing deficiency under section 431 as of the end
of the plan year, and
(D) in the case of a CSEC plan, the employ-
ers make contributions to or under the plan
for any plan year which, in the aggregate,
are sufficient to ensure that the plan does
not have an accumulated funding deficiency
under section 433 as of the end of the plan
year.
(b) Liability for contributions
(1) In general
Except as provided in paragraph (2), the
amount of any contribution required by this
section (including any required installments
under paragraphs (3) and (4) of section 430(j) or
under section 433(f)) shall be paid by the em-
ployer responsible for making contributions to
or under the plan.
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Stable record: federal_law:legal_authorities:uscode2024_6544da1c0552660f562b2f92 Source file: Laws/federal/codes/united-states-code-2024/title-26/section-412-minimum-funding-standards--080e29a14d.md Pages: Not recorded – Not recorded Passage SHA-256: 64b968bf7131bf5f7a508d17e38dbdb4f03b37f85468cd139beeb6c979a8a9e7 Retained source evidence SHA-256: c046c940762d89cbe232c865aec94539245a06436872c67554f925a11478d9bf
Page 1379
TITLE 26—INTERNAL REVENUE CODE
§ 412
the Uruguay Round Agreements Act, as amended by
subsection (a).’’
PLAN AMENDMENTS REFLECTING AMENDMENTS BY SEC-
TION 7881(m) OF PUB. L. 101–239 NOT TREATED
AS
REDUCING ACCRUED BENEFITS
For provisions directing that if during the period be-
ginning Dec. 22, 1987, and ending June 21, 1988, a plan
was amended to reflect the amendments by section 9346
of Pub. L. 100–203 and such plan is amended to reflect
the amendments by section 7881(m) of Pub. L. 101–239,
any plan amendments made to reflect the amendments
by section 7881(m) of Pub. L. 101–239 shall not be treated
as reducing accrued benefits for purposes of subsection
(d)(6) of this section or section 1054(g) of Title 29,
Labor, see section 7881(m)(3) of Pub. L. 101–239, set out
as a note under section 1054 of Title 29.
PLAN AMENDMENTS NOT REQUIRED UNTIL
JANUARY 1, 1998
For provisions directing that if any amendments
made by subtitle D [§§ 1401–1465] of title I of Pub. L.
104–188 require an amendment to any plan or annuity
contract, such amendment shall not be required to be
made before the first day of the first plan year begin-
ning on or after Jan. 1, 1998, see section 1465 of Pub. L.
104–188, set out as a note under section 401 of this title.
PLAN AMENDMENTS NOT REQUIRED UNTIL
JANUARY 1, 1994
For provisions directing that if any amendments
made by subtitle B [§§ 521–523] of title V of Pub. L.
102–318 require an amendment to any plan, such plan
amendment shall not be required to be made before the
first plan year beginning on or after Jan. 1, 1994, see
section 523 of Pub. L. 102–318, set out as a note under
section 401 of this title.
PLAN AMENDMENTS NOT REQUIRED UNTIL
JANUARY 1, 1989
For provisions directing that if any amendments
made by subtitle A or subtitle C of title XI [§§ 1101–1147
and 1171–1177] or title XVIII [§§ 1800–1899A] of Pub. L.
99–514 require an amendment to any plan, such plan
amendment shall not be required to be made before the
first plan year beginning on or after Jan. 1, 1989, see
section 1140 of Pub. L. 99–514, as amended, set out as a
note under section 401 of this title.
For provisions directing that if any amendments
made by sections 9202(b) and 9203(b)(2) of Pub. L. 99–509
require an amendment to any plan, such plan amend-
ment shall not be required to be made before the first
plan year beginning on or after Jan. 1, 1989, see section
9204 of Pub. L. 99–509, set out as a note under section 623
of Title 29, Labor.
ALTERNATE METHODS OF SATISFYING REQUIREMENTS
FOR VESTING AND ACCRUED BENEFITS
Pub. L. 93–406, title II, § 1012(c), Sept. 2, 1974, 88 Stat.
913, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100
Stat. 2095, provided that: ‘‘In the case of any plan main-
tained on January 1, 1974, if, not later than 2 years
after the date of the enactment of this Act [Sept. 2,
1974], the plan administrator petitions the Secretary of
Labor, the Secretary of Labor may prescribe an alter-
nate method which shall be treated as satisfying the re-
quirements of subsection (a)(2) of section 411 of the In-
ternal Revenue Code of 1986 [formerly I.R.C. 1954], or of
subsection (b)(1) (other than subparagraph (D) thereof)
of such section 411, or of both such provisions for a pe-
riod of not more than 4 years. The Secretary may pre-
scribe such alternate method only when he finds that—
‘‘(1) the application of such requirements would in-
crease the costs of the plan to such an extent that
there would result a substantial risk to the voluntary
continuation of the plan or a substantial curtailment
of benefit levels or the levels of employees’ com-
pensation,
‘‘(2) the application of such requirements or dis-
continuance of the plan would be adverse to the in-
terests of plan participants in the aggregate, and
‘‘(3) a waiver or extension of time granted under
[former] section 412(d) or (e) would be inadequate.
In the case of any plan with respect to which an alter-
nate method has been prescribed under the preceding
provisions of this subsection for a period of not more
than 4 years, if, not later than 1 year before the expira-
tion of such period, the plan administrator petitions
the Secretary of Labor for an extension of such alter-
nate method, and the Secretary makes the findings re-
quired by the preceding sentence, such alternate meth-
od may be extended for not more than 3 years.’’
§ 412. Minimum funding standards
(a) Requirement to meet minimum funding
standard
(1) In general
A plan to which this section applies shall
satisfy the minimum funding standard appli-
cable to the plan for any plan year.
(2) Minimum funding standard
For purposes of paragraph (1), a plan shall be
treated as satisfying the minimum funding
standard for a plan year if—
(A) in the case of a defined benefit plan
which is not a multiemployer plan or a
CSEC plan, the employer makes contribu-
tions to or under the plan for the plan year
which, in the aggregate, are not less than
the minimum required contribution deter-
mined under section 430 for the plan for the
plan year,
(B) in the case of a money purchase plan
which is not a multiemployer plan, the em-
ployer makes contributions to or under the
plan for the plan year which are required
under the terms of the plan,
(C) in the case of a multiemployer plan,
the employers make contributions to or
under the plan for any plan year which, in
the aggregate, are sufficient to ensure that
the plan does not have an accumulated fund-
ing deficiency under section 431 as of the end
of the plan year, and
(D) in the case of a CSEC plan, the employ-
ers make contributions to or under the plan
for any plan year which, in the aggregate,
are sufficient to ensure that the plan does
not have an accumulated funding deficiency
under section 433 as of the end of the plan
year.
(b) Liability for contributions
(1) In general
Except as provided in paragraph (2), the
amount of any contribution required by this
section (including any required installments
under paragraphs (3) and (4) of section 430(j) or
under section 433(f)) shall be paid by the em-
ployer responsible for making contributions to
or under the plan.
(2) Joint and several liability where employer
member of controlled group
If the employer referred to in paragraph (1)
is a member of a controlled group, each mem-
ber of such group shall be jointly and severally
liable for payment of such contributions.
(3) Multiemployer plans in critical status
Paragraph (1) shall not apply in the case of
a multiemployer plan for any plan year in
Page 1380
TITLE 26—INTERNAL REVENUE CODE
§ 412
which the plan is in critical status pursuant to
section 432. This paragraph shall only apply if
the plan sponsor adopts a rehabilitation plan
in accordance with section 432(e) and complies
with such rehabilitation plan (and any modi-
fications of the plan).
(c) Variance from minimum funding standards
(1) Waiver in case of business hardship
(A) In general
If—
(i) an employer is (or in the case of a
multiemployer plan or a CSEC plan, 10
percent or more of the number of employ-
ers contributing to or under the plan are)
unable to satisfy the minimum funding
standard for a plan year without tem-
porary substantial business hardship (sub-
stantial business hardship in the case of a
multiemployer plan), and
(ii) application of the standard would be
adverse to the interests of plan partici-
pants in the aggregate,
the Secretary may, subject to subparagraph
(C), waive the requirements of subsection (a)
for such year with respect to all or any por-
tion of the minimum funding standard. The
Secretary shall not waive the minimum
funding standard with respect to a plan for
more than 3 of any 15 (5 of any 15 in the case
of a multiemployer plan) consecutive plan
years.
(B) Effects of waiver
If a waiver is granted under subparagraph
(A) for any plan year—
(i) in the case of a defined benefit plan
which is not a multiemployer plan or a
CSEC plan, the minimum required con-
tribution under section 430 for the plan
year shall be reduced by the amount of the
waived
funding
deficiency
and
such
amount shall be amortized as required
under section 430(e),
(ii) in the case of a multiemployer plan,
the funding standard account shall be
credited under section 431(b)(3)(C) with the
amount of the waived funding deficiency
and such amount shall be amortized as re-
quired under section 431(b)(2)(C), and
(iii) in the case of a CSEC plan, the fund-
ing standard account shall be credited
under section 433(b)(3)(C) with the amount
of the waived funding deficiency and such
amount shall be amortized as required
under section 433(b)(2)(C).
(C) Waiver of amortized portion not allowed
The Secretary may not waive under sub-
paragraph (A) any portion of the minimum
funding standard under subsection (a) for a
plan year which is attributable to any
waived funding deficiency for any preceding
plan year.
(2) Determination of business hardship
For purposes of this subsection, the factors
taken into account in determining temporary
substantial
business
hardship
(substantial
business hardship in the case of a multiem-
ployer plan) shall include (but shall not be
limited to) whether or not—
(A) the employer is operating at an eco-
nomic loss,
(B) there is substantial unemployment or
underemployment in the trade or business
and in the industry concerned,
(C) the sales and profits of the industry
concerned are depressed or declining, and
(D) it is reasonable to expect that the plan
will be continued only if the waiver is grant-
ed.
(3) Waived funding deficiency
For purposes of this section and part III of
this subchapter, the term ‘‘waived funding de-
ficiency’’ means the portion of the minimum
funding standard under subsection (a) (deter-
mined without regard to the waiver) for a plan
year waived by the Secretary and not satisfied
by employer contributions.
(4) Security for waivers for single-employer
plans, consultations
(A) Security may be required
(i) In general
Except as provided in subparagraph (C),
the Secretary may require an employer
maintaining a defined benefit plan which
is a single-employer plan (within the
meaning of section 4001(a)(15) of the Em-
ployee Retirement Income Security Act of
1974) to provide security to such plan as a
condition for granting or modifying a
waiver under paragraph (1) or for granting
an extension under section 433(d).
(ii) Special rules
Any security provided under clause (i)
may be perfected and enforced only by the
Pension Benefit Guaranty Corporation, or
at the direction of the Corporation, by a
contributing sponsor (within the meaning
of section 4001(a)(13) of the Employee Re-
tirement Income Security Act of 1974), or a
member of such sponsor’s controlled group
(within the meaning of section 4001(a)(14)
of such Act).
(B) Consultation with the Pension Benefit
Guaranty Corporation
Except as provided in subparagraph (C),
the Secretary shall, before granting or modi-
fying a waiver under this subsection or an
extension under section 433(d) with respect
to a plan described in subparagraph (A)(i)—
(i) provide the Pension Benefit Guaranty
Corporation with—
(I) notice of the completed application
for any waiver, modification, or exten-
sion, and
(II) an opportunity to comment on
such application within 30 days after re-
ceipt of such notice, and
(ii) consider—
(I) any comments of the Corporation
under clause (i)(II), and
(II) any views of any employee organi-
zation (within the meaning of section
3(4) of the Employee Retirement Income
Security Act of 1974) representing par-
ticipants in the plan which are sub-
mitted in writing to the Secretary in
connection with such application.
Page 1381
TITLE 26—INTERNAL REVENUE CODE
§ 412
Information provided to the Corporation
under this subparagraph shall be considered
tax return information and subject to the
safeguarding and reporting requirements of
section 6103(p).
(C) Exception for certain waivers or exten-
sions
(i) In general
The preceding provisions of this para-
graph shall not apply to any plan with re-
spect to which the sum of—
(I) the aggregate unpaid minimum re-
quired contributions (within the mean-
ing of section 4971(c)(4)) for the plan year
and all preceding plan years, or the accu-
mulated funding deficiency under sec-
tion 433, whichever is applicable,
(II) the present value of all waiver am-
ortization installments determined for
the plan year and succeeding plan years
under section 430(e)(2) or 433(b)(2)(C),
whichever is applicable, and
(III) the total amounts not paid by rea-
son of an extension in effect under sec-
tion 433(d),
is less than $1,000,000.
(ii) Treatment of waivers or extensions for
which applications are pending
The amount described in clause (i)(I)
shall include any increase in such amount
which would result if all applications for
waivers or extensions with respect to the
minimum funding standard under this sub-
section which are pending with respect to
such plan were denied.
(5) Special rules for single-employer plans
(A) Application must be submitted before
date 21⁄2 months after close of year
In the case of a defined benefit plan which
is not a multiemployer plan, no waiver may
be granted under this subsection with re-
spect to any plan for any plan year unless an
application therefor is submitted to the Sec-
retary not later than the 15th day of the 3rd
month beginning after the close of such plan
year.
(B) Special rule if employer is member of
controlled group
In the case of a defined benefit plan which
is not a multiemployer plan, if an employer
is a member of a controlled group, the tem-
porary substantial business hardship re-
quirements of paragraph (1) shall be treated
as met only if such requirements are met—
(i) with respect to such employer, and
(ii) with respect to the controlled group
of which such employer is a member (de-
termined by treating all members of such
group as a single employer).
The Secretary may provide that an analysis
of a trade or business or industry of a mem-
ber need not be conducted if the Secretary
determines such analysis is not necessary
because the taking into account of such
member would not significantly affect the
determination under this paragraph.
(6) Advance notice
(A) In general
The Secretary shall, before granting a
waiver under this subsection, require each
applicant to provide evidence satisfactory to
the Secretary that the applicant has pro-
vided notice of the filing of the application
for such waiver to each affected party (as de-
fined in section 4001(a)(21) of the Employee
Retirement Income Security Act of 1974).
Such notice shall include a description of
the extent to which the plan is funded for
benefits which are guaranteed under title IV
of the Employee Retirement Income Secu-
rity Act of 1974 and for benefit liabilities.
(B) Consideration of relevant information
The Secretary shall consider any relevant
information provided by a person to whom
notice was given under subparagraph (A).
(7) Restriction on plan amendments
(A) In general
No amendment of a plan which increases
the liabilities of the plan by reason of any
increase in benefits, any change in the ac-
crual of benefits, or any change in the rate
at which benefits become nonforfeitable
under the plan shall be adopted if a waiver
under this subsection or an extension of
time under section 431(d) or section 433(d) is
in effect with respect to the plan, or if a plan
amendment described in subsection (d)(2)
which reduces the accrued benefit of any
participant has been made at any time in
the preceding 12 months (24 months in the
case of a multiemployer plan). If a plan is
amended in violation of the preceding sen-
tence, any such waiver, or extension of time,
shall not apply to any plan year ending on or
after the date on which such amendment is
adopted.
(B) Exception
Subparagraph (A) shall not apply to any
plan amendment which—
(i) the Secretary determines to be rea-
sonable and which provides for only de
minimis increases in the liabilities of the
plan,
(ii) only repeals an amendment described
in subsection (d)(2), or
(iii) is required as a condition of quali-
fication under part I of subchapter D of
chapter 1.
(d) Miscellaneous rules
(1) Change in method or year
If the funding method or a plan year for a
plan is changed, the change shall take effect
only if approved by the Secretary.
(2) Certain retroactive plan amendments
For purposes of this section, any amendment
applying to a plan year which—
(A) is adopted after the close of such plan
year but no later than 21⁄2 months after the
close of the plan year (or, in the case of a
multiemployer plan, no later than 2 years
after the close of such plan year),
(B) does not reduce the accrued benefit of
any participant determined as of the begin-
Page 1382
TITLE 26—INTERNAL REVENUE CODE
§ 412
ning of the first plan year to which the
amendment applies, and
(C) does not reduce the accrued benefit of
any participant determined as of the time of
adoption except to the extent required by
the circumstances,
shall, at the election of the plan adminis-
trator, be deemed to have been made on the
first day of such plan year. No amendment de-
scribed in this paragraph which reduces the
accrued benefits of any participant shall take
effect unless the plan administrator files a no-
tice with the Secretary notifying him of such
amendment and the Secretary has approved
such amendment, or within 90 days after the
date on which such notice was filed, failed to
disapprove such amendment. No amendment
described in this subsection shall be approved
by the Secretary unless the Secretary deter-
mines that such amendment is necessary be-
cause of a temporary substantial business
hardship (as determined under subsection
(c)(2)) or a substantial business hardship (as so
determined) in the case of a multiemployer
plan and that a waiver under subsection (c)
(or, in the case of a multiemployer plan or a
CSEC plan, any extension of the amortization
period under section 431(d) or section 433(d)) is
unavailable or inadequate.
(3) Controlled group
For purposes of this section, the term ‘‘con-
trolled group’’ means any group treated as a
single employer under subsection (b), (c), (m),
or (o) of section 414.
(e) Plans to which section applies
(1) In general
Except as provided in paragraphs (2) and (4),
this section applies to a plan if, for any plan
year beginning on or after the effective date of
this section for such plan under the Employee
Retirement Income Security Act of 1974—
(A) such plan included a trust which quali-
fied (or was determined by the Secretary to
have qualified) under section 401(a), or
(B) such plan satisfied (or was determined
by the Secretary to have satisfied) the re-
quirements of section 403(a).
(2) Exceptions
This section shall not apply to—
(A) any profit-sharing or stock bonus plan,
(B) any insurance contract plan described
in paragraph (3),
(C) any governmental plan (within the
meaning of section 414(d)),
(D) any church plan (within the meaning
of section 414(e)) with respect to which the
election provided by section 410(d) has not
been made,
(E) any plan which has not, at any time
after September 2, 1974, provided for em-
ployer contributions, or
(F) any plan established and maintained
by a society, order, or association described
in section 501(c)(8) or (9), if no part of the
contributions to or under such plan are
made by employers of participants in such
plan.
No plan described in subparagraph (C), (D), or
(F) shall be treated as a qualified plan for pur-
poses of section 401(a) unless such plan meets
the requirements of section 401(a)(7) as in ef-
fect on September 1, 1974.
(3) Certain insurance contract plans
A plan is described in this paragraph if—
(A) the plan is funded exclusively by the
purchase of individual insurance contracts,
(B) such contracts provide for level annual
premium payments to be paid extending not
later than the retirement age for each indi-
vidual participating in the plan, and com-
mencing with the date the individual be-
came a participant in the plan (or, in the
case of an increase in benefits, commencing
at the time such increase becomes effective),
(C) benefits provided by the plan are equal
to the benefits provided under each contract
at normal retirement age under the plan and
are guaranteed by an insurance carrier (li-
censed under the laws of a State to do busi-
ness with the plan) to the extent premiums
have been paid,
(D) premiums payable for the plan year,
and all prior plan years, under such con-
tracts have been paid before lapse or there is
reinstatement of the policy,
(E) no rights under such contracts have
been subject to a security interest at any
time during the plan year, and
(F) no policy loans are outstanding at any
time during the plan year.
A plan funded exclusively by the purchase of
group insurance contracts which is determined
under regulations prescribed by the Secretary
to have the same characteristics as contracts
described in the preceding sentence shall be
treated as a plan described in this paragraph.
(4) Certain terminated multiemployer plans
This section applies with respect to a termi-
nated multiemployer plan to which section
4021 of the Employee Retirement Income Secu-
rity Act of 1974 applies until the last day of
the plan year in which the plan terminates
(within the meaning of section 4041A(a)(2) of
such Act).
(Added Pub. L. 93–406, title II, § 1013(a), Sept. 2,
1974, 88 Stat. 914; amended Pub. L. 94–455, title
XIX, §§ 1901(a)(63), 1906(b)(13)(A), Oct. 4, 1976, 90
Stat. 1775, 1834; Pub. L. 96–364, title II, §§ 203,
208(c), Sept. 26, 1980, 94 Stat. 1285, 1289; Pub. L.
98–369, div. A, title IV, § 491(d)(25), July 18, 1984,
98 Stat. 850; Pub. L. 99–272, title XI, §§ 11015(a)(2),
(b)(2), 11016(c)(4), Apr. 7, 1986, 100 Stat. 265, 267,
273; Pub. L. 100–203, title IX, §§ 9301(a), 9303(a),
(d)(1), 9304(a)(1), (b)(1), (e)(1), 9305(b)(1), 9306(a)(1),
(b)(1), (c)(1), (d)(1), (e)(1), 9307(a)(1), (b)(1), (e)(1),
Dec. 22, 1987, 101 Stat. 1330–331, 1330–333, 1330–342
to 1330–344, 1330–348, 1330–351, 1330–352, 1330–354 to
1330–357; Pub. L. 100–647, title II, § 2005(a)(2)(A),
(d)(1), Nov. 10, 1988, 102 Stat. 3610, 3612; Pub. L.
101–239, title VII, § 7881(a)(1)(A), (2)(A), (3)(A),
(4)(A), (5)(A), (6)(A), (b)(1)(A), (2)(A), (3)(A),
(4)(A), (6)(A), (c)(1), (d)(1)(A), Dec. 19, 1989, 103
Stat. 2435–2439; Pub. L. 103–465, title VII,
§§ 751(a)(1)–(9)(A), (10), 752(a), 753(a), 754(a), 768(a),
Dec. 8, 1994, 108 Stat. 5012–5019, 5021–5023, 5040;
Pub. L. 105–34, title XV, § 1521(a), (c)(1), (3)(A),
title XVI, § 1604(b)(2)(A), Aug. 5, 1997, 111 Stat.
1069, 1070, 1097; Pub. L. 107–16, title VI, §§ 651(a),
Page 1383
TITLE 26—INTERNAL REVENUE CODE
§ 412
661(a), June 7, 2001, 115 Stat. 129, 141; Pub. L.
107–147, title IV, §§ 405(a), 411(v)(1), Mar. 9, 2002,
116 Stat. 42, 52; Pub. L. 108–218, title I,
§§ 101(b)(1)–(3), 102(b), 104(b), Apr. 10, 2004, 118
Stat. 597, 598, 601, 606; Pub. L. 109–135, title IV,
§ 412(x)(1), Dec. 21, 2005, 119 Stat. 2638; Pub. L.
109–280, title I, § 111(a), title II, § 212(c), title III,
§ 301(b), Aug. 17, 2006, 120 Stat. 820, 917, 919; Pub.
L. 110–458, title I, §§ 101(a)(2), 102(b)(2)(H), Dec. 23,
2008, 122 Stat. 5093, 5103; Pub. L. 113–97, title II,
§ 202(c)(1), (2), Apr. 7, 2014, 128 Stat. 1135; Pub. L.
115–141, div. U, title IV, § 401(a)(83)–(85), Mar. 23,
2018, 132 Stat. 1188.)
Editorial Notes
REFERENCES IN TEXT
The Employee Retirement Income Security Act of
1974, referred to in subsecs. (c)(4)(A), (B)(ii)(II), (6)(A)
and (e)(1), (4), is Pub. L. 93–406, Sept. 2, 1974, 88 Stat.
829, which is classified principally to chapter 18 (§ 1001
et seq.) of Title 29, Labor. Title IV of the Act is classi-
fied generally to subchapter III (§ 1301 et seq.) of chap-
ter 18 of Title 29. Sections 3, 4001, 4021, and 4041A of the
Act are classified to sections 1002, 1301, 1321, and 1341a
of Title 29, respectively. For complete classification of
this Act to the Code, see Short Title note set out under
section 1001 of Title 29 and Tables.
The effective date of this section, referred to in sub-
sec. (e)(1), probably means the effective date of Pub. L.
109–280, § 111(a), which amended this section. See Effec-
tive Date of 2006 Amendment note below.
AMENDMENTS
2018—Subsec. (c)(1)(A). Pub. L. 115–141, § 401(a)(83), in-
serted period at end of concluding provisions.
Subsec. (c)(4)(B). Pub. L. 115–141, § 401(a)(84), inserted
‘‘section’’ before ‘‘433(d)’’ in introductory provisions.
Subsec. (c)(7)(B)(iii). Pub. L. 115–141, § 401(a)(85),
struck out comma after ‘‘subchapter D’’.
2014—Subsec. (a)(2)(A). Pub. L. 113–97, § 202(c)(2)(A),
substituted ‘‘multiemployer plan or a CSEC plan’’ for
‘‘multiemployer plan’’.
Subsec. (a)(2)(D). Pub. L. 113–97, § 202(c)(1), added sub-
par. (D).
Subsec. (b)(1). Pub. L. 113–97, § 202(c)(2)(B), substituted
‘‘430(j) or under section 433(f)’’ for ‘‘430(j)’’.
Subsec. (c)(1)(A)(i). Pub. L. 113–97, § 202(c)(2)(A), sub-
stituted ‘‘multiemployer plan or a CSEC plan, 10 per-
cent’’ for ‘‘multiemployer plan, 10 percent’’.
Subsec. (c)(1)(B)(i). Pub. L. 113–97, § 202(c)(2)(A), sub-
stituted ‘‘multiemployer plan or a CSEC plan’’ for
‘‘multiemployer plan’’.
Subsec. (c)(1)(B)(iii). Pub. L. 113–97, § 202(c)(2)(C),
added cl. (iii).
Subsec. (c)(4)(A)(i). Pub. L. 113–97, § 202(c)(2)(D), sub-
stituted ‘‘under paragraph (1) or for granting an exten-
sion under section 433(d)’’ for ‘‘under paragraph (1)’’.
Subsec. (c)(4)(B). Pub. L. 113–97, § 202(c)(2)(E), sub-
stituted ‘‘waiver under this subsection or an extension
under 433(d)’’ for ‘‘waiver under this subsection’’ in in-
troductory provisions.
Subsec. (c)(4)(B)(i)(I). Pub. L. 113–97, § 202(c)(2)(F),
substituted ‘‘waiver, modification, or extension’’ for
‘‘waiver or modification’’.
Subsec. (c)(4)(C). Pub. L. 113–97, § 202(c)(2)(G), sub-
stituted ‘‘waivers or extensions’’ for ‘‘waivers’’ in head-
ing.
Subsec. (c)(4)(C)(i)(I). Pub. L. 113–97, § 202(c)(2)(I), sub-
stituted ‘‘or the accumulated funding deficiency under
section 433, whichever is applicable,’’ for ‘‘and’’ at end.
Subsec. (c)(4)(C)(i)(II). Pub. L. 113–97, § 202(c)(2)(J),
substituted ‘‘430(e)(2) or 433(b)(2)(C), whichever is appli-
cable, and’’ for ‘‘430(e)(2),’’.
Subsec. (c)(4)(C)(i)(III). Pub. L. 113–97, § 202(c)(2)(K),
added subcl. (III).
Subsec. (c)(4)(C)(ii). Pub. L. 113–97, § 202(c)(2)(L), sub-
stituted ‘‘for waivers or extensions with respect to’’ for
‘‘for waivers of’’.
Pub. L. 113–97, § 202(c)(2)(G), substituted ‘‘waivers or
extensions’’ for ‘‘waivers’’ in heading.
Subsec. (c)(7)(A). Pub. L. 113–97, § 202(c)(2)(H), sub-
stituted ‘‘section 431(d) or section 433(d)’’ for ‘‘section
431(d)’’.
Subsec. (d)(2). Pub. L. 113–97, § 202(c)(2)(H), substituted
‘‘section 431(d) or section 433(d)’’ for ‘‘section 431(d)’’ in
concluding provisions.
Pub. L. 113–97, § 202(c)(2)(A), substituted ‘‘multiem-
ployer plan or a CSEC plan, any extension’’ for ‘‘multi-
employer plan, any extension’’ in concluding provi-
sions.
2008—Subsec. (b)(3). Pub. L. 110–458, § 102(b)(2)(H), sub-
stituted ‘‘the plan sponsor adopts’’ for ‘‘the plan
adopts’’.
Subsec. (c)(1)(A)(i). Pub. L. 110–458, § 101(a)(2)(A), sub-
stituted ‘‘the plan are’’ for ‘‘the plan is’’.
Subsec. (c)(7)(A). Pub. L. 110–458, § 101(a)(2)(B), in-
serted ‘‘which reduces the accrued benefit of any par-
ticipant’’ after ‘‘subsection (d)(2)’’.
Subsec. (d)(1). Pub. L. 110–458, § 101(a)(2)(C), struck out
‘‘, the valuation date,’’ after ‘‘If the funding method’’.
2006—Pub. L. 109–280, § 111(a), reenacted heading with-
out change and amended text generally, substituting
provisions relating to minimum funding standard re-
quirement, liability for contributions, variance from
minimum funding standards, miscellaneous rules, and
plans to which section applies, consisting of subsecs. (a)
to (e), for provisions relating to general rule for satis-
faction of minimum funding standard, funding standard
account, special rules, variance from minimum funding
standard, extension of amortization periods, require-
ments relating to waivers and extensions, alternative
minimum funding standard, exceptions, certain insur-
ance contract plans, certain terminated multiemployer
plans, financial assistance, additional funding require-
ments for plans which are not multiemployer plans,
quarterly contributions requirement, and imposition of
lien where failure to make required contributions, con-
sisting of subsecs. (a) to (n).
Subsec. (b)(3). Pub. L. 109–280, § 212(c), added par. (3).
Subsec. (b)(5)(B)(ii)(II). Pub. L. 109–280, § 301(b)(1), sub-
stituted ‘‘, 2005, 2006, and 2007’’ for ‘‘and 2005’’ in head-
ing and ‘‘2008’’ for ‘‘2006’’ in text.
Subsec. (l)(7)(C)(i)(IV). Pub. L. 109–280, § 301(b)(2), sub-
stituted ‘‘, 2005, 2006, and 2007’’ for ‘‘and 2005’’ in head-
ing and ‘‘, 2005, 2006, or 2007’’ for ‘‘or 2005’’ in text.
2005—Subsec. (m)(4)(B)(i). Pub. L. 109–135 substituted
‘‘subsection (d)’’ for ‘‘subsection (c)’’.
2004—Subsec.
(b)(5)(B)(ii)(I).
Pub.
L.
108–218,
§ 101(b)(1)(C), inserted ‘‘or (III)’’ after ‘‘subclause (II)’’.
Subsec.
(b)(5)(B)(ii)(II),
(III).
Pub.
L.
108–218,
§ 101(b)(1)(A), (B), added subcl. (II), redesignated former
subcl. (II) as (III), and, in subcl. (III), inserted ‘‘or (II)’’
after ‘‘permissible under subclause (I)’’ and substituted
‘‘such subclause’’ for ‘‘subclause (I)’’ before period at
end.
Subsec. (b)(7)(F). Pub. L. 108–218, § 104(b), added sub-
par. (F).
Subsec. (l)(7)(C)(i)(IV). Pub. L. 108–218, § 101(b)(2),
added subcl. (IV).
Subsec. (l)(12). Pub. L. 108–218, § 102(b), added par. (12).
Subsec. (m)(7). Pub. L. 108–218, § 101(b)(3), amended
heading and text of par. (7) generally, substituting pro-
visions relating to special rule for 2002 for provisions
relating to special rules for 2002 and 2004.
2002—Subsec.
(c)(9)(B)(ii).
Pub.
L.
107–147,
§ 411(v)(1)(A), substituted ‘‘100 percent’’ for ‘‘125 per-
cent’’.
Subsec. (c)(9)(B)(iv). Pub. L. 107–147, § 411(v)(1)(B),
added cl. (iv).
Subsec. (l)(7)(C)(i)(III). Pub. L. 107–147, § 405(a)(1),
added subcl. (III).
Subsec. (m)(7). Pub. L. 107–147, § 405(a)(2), added par.
(7).
2001—Subsec. (c)(7)(A)(i)(I). Pub. L. 107–16, § 651(a)(1),
substituted ‘‘in the case of plan years beginning before
January 1, 2004, the applicable percentage’’ for ‘‘the ap-
plicable percentage’’.
Subsec. (c)(7)(F). Pub. L. 107–16, § 651(a)(2), reenacted
heading and introductory provisions without change
Page 1384
TITLE 26—INTERNAL REVENUE CODE
§ 412
and amended table generally, substituting present pro-
visions for provisions which had set out applicable per-
centage of 155 in the case of any plan year beginning in
1999 or 2000, 160 in the case of any plan year beginning
in 2001 or 2002, 165 in the case of any plan year begin-
ning in 2003 or 2004, and 170 in the case of any plan year
beginning in 2005 and succeeding years.
Subsec. (c)(9). Pub. L. 107–16, § 661(a), reenacted head-
ing without change and amended text of par. (9) gen-
erally. Prior to amendment, text read as follows: ‘‘For
purposes of this section, a determination of experience
gains and losses and a valuation of the plan’s liability
shall be made not less frequently than once every year,
except that such determination shall be made more fre-
quently to the extent required in particular cases under
regulations prescribed by the Secretary.’’
1997—Subsec. (b)(2)(E). Pub. L. 105–34, § 1521(c)(1),
added subpar. (E).
Subsec. (c)(7)(A)(i)(I). Pub. L. 105–34, § 1521(a)(A), sub-
stituted ‘‘the applicable percentage’’ for ‘‘150 percent’’.
Subsec. (c)(7)(D). Pub. L. 105–34, § 1521(c)(3)(A), in-
serted ‘‘and’’ at end of cl. (i), substituted a period for
‘‘, and’’ at end of cl. (ii), and struck out cl. (iii) which
read as follows: ‘‘for the treatment under this section
of contributions which would be required to be made
under the plan but for the provisions of subparagraph
(A)(i)(I).’’
Subsec. (c)(7)(F). Pub. L. 105–34, § 1521(a)(B), added
subpar. (F).
Subsec. (m)(5)(E)(ii)(II). Pub. L. 105–34, § 1604(b)(2)(A),
substituted ‘‘subclause (I)’’ for ‘‘clause (i)’’.
1994—Subsec. (c)(5). Pub. L. 103–465, § 752(a), des-
ignated existing provisions as subpar. (A), inserted sub-
par. heading, and added subpar. (B).
Subsec. (c)(7)(A)(i)(I). Pub. L. 103–465, § 751(a)(10)(A),
inserted ‘‘(including the expected increase in current li-
ability due to benefits accruing during the plan year)’’
after ‘‘current liability’’.
Subsec. (c)(7)(B). Pub. L. 103–465, § 751(a)(10)(C), reen-
acted subpar. (B) heading without change and amended
text generally. Prior to amendment, text read as fol-
lows: ‘‘For purposes of subparagraphs (A) and (D), the
term ‘current liability’ has the meaning given such
term by subsection (l)(7) (without regard to subpara-
graph (D) thereof).’’
Subsec. (c)(7)(E). Pub. L. 103–465, § 751(a)(10)(B), added
subpar. (E).
Subsec. (c)(12). Pub. L. 103–465, § 753(a), added par. (12).
Subsec. (l)(1). Pub. L. 103–465, § 751(a)(1)(A), (2)(B), in
introductory provisions, substituted ‘‘to which this
subsection applies under paragraph (9)’’ for ‘‘which has
an unfunded current liability’’, and amended con-
cluding provisions generally. Prior to amendment, con-
cluding provisions read as follows: ‘‘Such increase shall
not exceed the amount necessary to increase the funded
current liability percentage to 100 percent.’’
Subsec. (l)(1)(A)(ii). Pub. L. 103–465, § 751(a)(2)(A),
amended cl. (ii) generally. Prior to amendment, cl. (ii)
read as follows: ‘‘the sum of the charges for such plan
year under subparagraphs (B) (other than clauses (iv)
and (v) thereof), (C), and (D) of subsection (b)(2), re-
duced by the sum of the credits for such plan year
under subparagraph (B)(i) of subsection (b)(3), plus’’.
Subsec. (l)(2)(C). Pub. L. 103–465, § 751(a)(3), added sub-
par. (C).
Subsec. (l)(2)(D). Pub. L. 103–465, § 751(a)(7)(B)(i),
added subpar. (D).
Subsec. (l)(3)(D), (E). Pub. L. 103–465, § 751(a)(4)(A),
added subpars. (D) and (E).
Subsec. (l)(4)(B)(i). Pub. L. 103–465, § 751(a)(4)(B),
(7)(B)(iii), inserted ‘‘, the unamortized portion of the
additional unfunded old liability, the unamortized por-
tion of each unfunded mortality increase,’’ after ‘‘old
liability’’.
Subsec. (l)(4)(C). Pub. L. 103–465, § 751(a)(5), sub-
stituted ‘‘.40’’ for ‘‘.25’’ in cl. (i) and ‘‘60’’ for ‘‘35’’ in cl.
(ii).
Subsec. (l)(5)(A). Pub. L. 103–465, § 751(a)(6)(A)(i), sub-
stituted ‘‘greatest of’’ for ‘‘greater of’’ in introductory
provisions.
Subsec.
(l)(5)(A)(iii).
Pub.
L.
103–465,
§ 751(a)(6)(A)(ii)–(iv), added cl. (iii).
Subsec. (l)(5)(E). Pub. L. 103–465, § 751(a)(6)(B), added
subpar. (E).
Subsec. (l)(7)(C). Pub. L. 103–465, § 751(a)(7)(A), amend-
ed subpar. (C) generally. Prior to amendment, subpar.
(C) read as follows: ‘‘(C) INTEREST RATES USED.—The
rate of interest used to determine current liability
shall be the rate of interest used under subsection
(b)(5).’’
Subsec. (l)(9). Pub. L. 103–465, § 751(a)(1)(B), added par.
(9).
Subsec. (l)(10). Pub. L. 103–465, § 751(a)(7)(B)(ii), added
par. (10).
Subsec. (l)(11). Pub. L. 103–465, § 751(a)(8), added par.
(11).
Subsec. (m)(1). Pub. L. 103–465, § 754(a), in introduc-
tory provisions, inserted ‘‘which has a funded current
liability percentage (as defined in subsection (l)(8)) for
the preceding plan year of less than 100 percent’’ before
‘‘fails’’ and substituted ‘‘the plan year’’ for ‘‘any plan
year’’.
Subsec. (m)(4)(D)(ii). Pub. L. 103–465, § 751(a)(6)(C)(i),
substituted ‘‘greatest of’’ for ‘‘greater of’’ in introduc-
tory provisions.
Subsec.
(m)(4)(D)(ii)(III).
Pub.
L.
103–465,
§ 751(a)(6)(C)(ii)–(iv), added subcl. (III).
Subsec. (m)(5), (6). Pub. L. 103–465, § 751(a)(9)(A), added
par. (5) and redesignated former par. (5) as (6).
Subsec. (n)(2). Pub. L. 103–465, § 768(a)(1), inserted at
end ‘‘This subsection shall not apply to any plan to
which section 4021 of the Employee Retirement Income
Security Act of 1974 does not apply (as such section is
in effect on the date of the enactment of the Retire-
ment Protection Act of 1994).’’
Subsec. (n)(3). Pub. L. 103–465, § 768(a)(2), reenacted
par. (3) heading without change and amended text gen-
erally. Prior to amendment, text read as follows: ‘‘For
purposes of paragraph (1), the amount of the lien shall
be equal to the lesser of—
‘‘(A) the amount by which the unpaid balances de-
scribed in paragraph (1)(B) (including interest) exceed
$1,000,000, or
‘‘(B) the aggregate unpaid balance of required in-
stallments and other payments required under this
section (including interest)—
‘‘(i) for plan years beginning after 1987, and
‘‘(ii) for which payment has not been made before
the due date.’’
Subsec. (n)(4)(B). Pub. L. 103–465, § 768(a)(3), struck
out ‘‘60th day following the’’ before ‘‘due date’’.
1989—Subsec.
(b)(5)(B)(iii).
Pub.
L.
101–239,
§ 7881(d)(1)(A), struck out ‘‘for purposes of this section
and for purposes of determining current liability,’’ be-
fore ‘‘the interest rate’’ in introductory provisions.
Subsec. (c)(9). Pub. L. 101–239, § 7881(a)(6)(A), sub-
stituted ‘‘Annual’’ for ‘‘3-year’’ in heading and ‘‘every
year’’ for ‘‘every 3 years’’ in text.
Subsec. (c)(10)(A). Pub. L. 101–239, § 7881(b)(1)(A), sub-
stituted ‘‘Defined benefit plans’’ for ‘‘Plans’’ in heading
and ‘‘defined benefit plan other’’ for ‘‘plan other’’ in in-
troductory provisions.
Subsec. (c)(10)(B). Pub. L. 101–239, § 7881(b)(2)(A), sub-
stituted ‘‘Other’’ for ‘‘Multiemployer’’ in heading and
‘‘plan not described in subparagraph (A)’’ for ‘‘multiem-
ployer plan’’ in text.
Subsec. (d)(1)(A)(ii). Pub. L. 101–239, § 7881(b)(6)(A)(ii),
substituted ‘‘costs (including adjustments under sub-
section (b)(5)(B))’’ for ‘‘costs’’.
Subsec. (f)(4)(A). Pub. L. 101–239, § 7881(c)(1), sub-
stituted ‘‘for benefit liabilities’’ for ‘‘the benefit liabil-
ities’’.
Subsec. (l)(3)(C)(ii)(II). Pub. L. 101–239, § 7881(a)(1)(A),
substituted ‘‘reducing (but not below zero)’’ for ‘‘reduc-
ing’’.
Subsec. (l)(4)(B)(i). Pub. L. 101–239, § 7881(a)(2)(A), sub-
stituted ‘‘liability and the unamortized portion of the
unfunded existing benefit increase liability’’ for ‘‘liabil-
ity’’.
Subsec. (l)(5)(C). Pub. L. 101–239, § 7881(a)(3)(A), sub-
stituted ‘‘the first plan year beginning after December
31, 1988’’ for ‘‘October 17, 1987’’.
Page 1385
TITLE 26—INTERNAL REVENUE CODE
§ 412
Subsec.
(l)(7)(D)(iii)(III).
Pub.
L.
101–239,
§ 7881(a)(4)(A)(i), added subcl. (III).
Subsec. (l)(7)(D)(iv). Pub. L. 101–239, § 7881(a)(4)(A)(ii),
added cl. (iv).
Subsec. (l)(8)(A)(ii). Pub. L. 101–239, § 7881(a)(5)(A)(i),
struck out ‘‘reduced by any credit balance in the fund-
ing standard account’’ after ‘‘under subsection (c)(2)’’.
Subsec. (l)(8)(E). Pub. L. 101–239, § 7881(a)(5)(A)(ii),
added subpar. (E).
Subsec. (m)(1). Pub. L. 101–239, § 7881(b)(3)(A), sub-
stituted ‘‘defined benefit plan (other than’’ for ‘‘plan
(other than’’ in introductory provisions.
Subsec. (m)(1)(B). Pub. L. 101–239, § 7881(b)(6)(A)(i),
amended subpar. (B) generally. Prior to amendment,
subpar. (B) read as follows: ‘‘the rate under subsection
(b)(5).’’
Subsec. (m)(4)(D). Pub. L. 101–239, § 7881(b)(4)(A),
amended subpar. (D) generally. Prior to amendment,
subpar. (D) read as follows: ‘‘In the case of a plan with
any unpredictable contingent event benefit liabilities—
‘‘(i) such liabilities shall not be taken into account
in computing the required annual payment under
subparagraph (B), and
‘‘(ii) each required installment shall be increased
by the greater of—
‘‘(I) the amount of benefits described in sub-
section (l)(5)(A)(i) paid during the 3-month period
preceding the month in which the due date for such
installment occurs, or
‘‘(II) 25 percent of the amount determined under
subsection (l)(5)(A)(ii) for the plan year.’’
1988—Subsec.
(l)(3)(C)(i),
(iii).
Pub.
L.
100–647,
§ 2005(a)(2)(A), (d)(1), amended cl. (i) identically, sub-
stituting ‘‘October 29’’ for ‘‘October 17’’ and amended
cl. (iii) identically, substituting ‘‘October 28’’ for ‘‘Oc-
tober 16’’.
1987—Subsec. (b)(2). Pub. L. 100–203, § 9303(a)(2), in-
serted at end ‘‘For additional requirements in the case
of plans other than multiemployer plans, see sub-
section (l).’’
Subsec. (b)(2)(B)(iv). Pub. L. 100–203, § 9307(a)(1)(A),
substituted ‘‘5 plan years (15 plan years in the case of
a multiemployer plan)’’ for ‘‘15 plan years’’.
Subsec. (b)(2)(B)(v). Pub. L. 100–203, § 9307(a)(1)(B),
substituted ‘‘10 plan years (30 plan years in the case of
a multiemployer plan)’’ for ‘‘30 plan years’’.
Subsec.
(b)(2)(C),
(3)(B)(ii).
Pub.
L.
100–203,
§ 9307(a)(1)(A), substituted ‘‘5 plan years (15 plan years
in the case of a multiemployer plan)’’ for ‘‘15 plan
years’’.
Subsec. (b)(3)(B)(iii). Pub. L. 100–203, § 9307(a)(1)(B),
substituted ‘‘10 plan years (30 plan years in the case of
a multiemployer plan)’’ for ‘‘30 plan years’’.
Subsec. (b)(5). Pub. L. 100–203, § 9307(e)(1), amended
par. (5) generally. Prior to amendment, par. (5) read as
follows: ‘‘The funding standard account (and items
therein) shall be charged or credited (as determined
under regulations prescribed by the Secretary) with in-
terest at the appropriate rate consistent with the rate
or rates of interest used under the plan to determine
costs.’’
Subsec. (c)(2)(B). Pub. L. 100–203, § 9303(d)(1), inserted
at end ‘‘In the case of a plan other than a multiem-
ployer plan, this subparagraph shall not apply, but the
Secretary may by regulations provide that the value of
any dedicated bond portfolio of such plan shall be de-
termined by using the interest rate under subsection
(b)(5).’’
Subsec. (c)(3). Pub. L. 100–203, § 9307(b)(1), amended
par. (3) generally. Prior to amendment, par. (3) read as
follows: ‘‘For purposes of this section, all costs, liabil-
ities, rates of interest, and other factors under the plan
shall be determined on the basis of actuarial assump-
tions and methods which, in the aggregate, are reason-
able (taking into account the experience of the plan
and reasonable expectations) and which, in combina-
tion, offer the actuary’s best estimate of anticipated
experience under the plan.’’
Subsec. (c)(7). Pub. L. 100–203, § 9301(a), substituted
‘‘Full-funding’’ for ‘‘Full funding’’ in heading and
amended text generally. Prior to amendment, text read
as follows: ‘‘For purposes of paragraph (6), the term full
funding limitation means the excess (if any) of—
‘‘(A) the accrued liability (including normal cost)
under the plan (determined under the entry age nor-
mal funding method if such accrued liability cannot
be directly calculated under the funding method used
for the plan), over
‘‘(B) the lesser of the fair market value of the plan’s
assets or the value of such assets determined under
paragraph (2).’’
Subsec. (c)(10). Pub. L. 100–203, § 9304(a)(1), amended
par. (10) generally. Prior to amendment, par. (10) read
as follows: ‘‘For purposes of this section, any contribu-
tions for a plan year made by an employer after the
last day of such plan year, but not later than two and
one-half months after such day, shall be deemed to
have been made on such last day. For purposes of this
paragraph, such two and one-half month period may be
extended for not more than six months under regula-
tions prescribed by the Secretary.’’
Subsec. (c)(11). Pub. L. 100–203, § 9305(b)(1), added par.
(11).
Subsec. (d)(1). Pub. L. 100–203, § 9306(a)(1)(B), struck
out ‘‘substantial’’ after ‘‘in case of’’ in heading, and
substituted ‘‘temporary substantial business hardship
(substantial business hardship in the case of a multiem-
ployer plan)’’ for ‘‘substantial business hardship’’ in
text.
Pub. L. 100–203, § 9306(b)(1), substituted ‘‘more than 3
of any 15 (5 of any 15 in the case of a multiemployer
plan)’’ for ‘‘more than 5 of any 15’’.
Pub. L. 100–203, § 9306(c)(1)(A), substituted ‘‘The inter-
est rate used for purposes of computing the amortiza-
tion charge described in subsection (b)(2)(C) for any
plan year shall be—’’ and subpars. (A) and (B) for ‘‘The
interest rate used for purposes of computing the amor-
tization charge described in section 412(b)(2)(C) for a
variance granted under this subsection shall be the rate
determined under section 6621(b).’’
Subsec. (d)(2). Pub. L. 100–203, § 9306(a)(1)(B), struck
out ‘‘substantial’’ after ‘‘Determination of’’ in heading,
and substituted ‘‘temporary substantial business hard-
ship (substantial business hardship in the case of a
multiemployer plan)’’ for ‘‘substantial business hard-
ship’’ in introductory provisions.
Subsec. (d)(4). Pub. L. 100–203, § 9306(a)(1)(A), added
par. (4).
Subsec. (d)(5). Pub. L. 100–203, § 9306(a)(1)(C), added
par. (5).
Subsec. (e). Pub. L. 100–203, § 9306(c)(1)(B), substituted
last two sentences for ‘‘The interest rate applicable
under any arrangement entered into by the Secretary
in connection with an extension granted under this
subsection shall be the rate determined under section
6621(b).’’
Subsec. (f)(3)(C)(i). Pub. L. 100–203, § 9306(e)(1), sub-
stituted ‘‘$1,000,000’’ for ‘‘$2,000,000’’ at end.
Subsec. (f)(4)(A). Pub. L. 100–203, § 9306(d)(1), sub-
stituted ‘‘plan, and each participant, beneficiary, and
alternate payee (within the meaning of section
414(p)(8)). Such notice shall include a description of the
extent to which the plan is funded for benefits which
are guaranteed under title IV of such Act and the ben-
efit liabilities.’’ for ‘‘plan.’’
Subsec. (l). Pub. L. 100–203, § 9303(a)(1), added subsec.
(l).
Subsec. (m). Pub. L. 100–203, § 9304(b)(1), added subsec.
(m).
Subsec. (n). Pub. L. 100–203, § 9304(e)(1), added subsec.
(n).
1986—Subsec. (d)(1). Pub. L. 99–272, § 11015(b)(2)(A), in-
serted provision that the interest rate used for pur-
poses of computing the amortization charge described
in section 412(b)(2)(C) for a variance granted under this
subsection be the rate determined under section 6621(b).
Subsec. (e). Pub. L. 99–272, § 11015(b)(2)(B), inserted
provision that the interest rate applicable under any
arrangement entered into by the Secretary in connec-
tion with an extension granted under this subsection be
the rate determined under section 6621(b).
Page 1386
TITLE 26—INTERNAL REVENUE CODE
§ 412
Subsec. (f). Pub. L. 99–272, § 11015(a)(2), substituted in
heading ‘‘Requirements relating to waivers and exten-
sions’’ for ‘‘Benefits may not be increased during waiv-
er or extension period’’ and in par. (1) heading ‘‘Bene-
fits may not be increased during waiver or extension
period’’ for ‘‘In general’’, and added par. (3).
Pub. L. 99–272, § 11016(c)(4), added par. (4).
1984—Subsec. (a)(2). Pub. L. 98–369 struck out ‘‘or
405(a)’’ after ‘‘section 403(a)’’.
1980—Subsec. (a). Pub. L. 96–364, § 208(c), inserted pro-
visions relating to plan years where multiemployer
plan is in reorganization.
Subsec. (b). Pub. L. 96–364, § 203(1), (2), struck out in
pars. (2)(B)(ii), (iii), and (3)(B)(i) provisions respecting
applicability of multiemployer plans with 40 plan years
and in pars. (2)(B)(iv) and (3)(B)(ii) provisions respect-
ing applicability of multiemployer plans with 20 year
plans and added pars. (6) and (7).
Subsecs. (j), (k). Pub. L. 96–364, § 203(3), added subsecs.
(j) and (k).
1976—Subsecs.
(a)
to
(d).
Pub.
L.
94–455,
§ 1906(b)(13)(A), struck out ‘‘or his delegate’’ after ‘‘Sec-
retary’’.
Subsec. (h). Pub. L. 94–455, § 1901(a)(63), substituted
reference to Sept. 2, 1974, for reference to the date of
enactment of the Employee Retirement Income Secu-
rity Act of 1974 in par. (5) and substituted reference to
Sept. 1, 1974, for reference to the day before the date of
enactment of the Employee Retirement Income Secu-
rity Act of 1974 in the provisions following par. (6).
Subsec. (i). Pub. L. 94–455, § 1906(b)(13)(A), struck out
‘‘or his delegate’’ after ‘‘Secretary’’.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 2014 AMENDMENT
Amendment by Pub. L. 113–97 applicable to years be-
ginning after Dec. 31, 2013, see section 3 of Pub. L.
113–97, set out as a note under section 401 of this title.
EFFECTIVE DATE OF 2008 AMENDMENT
Amendment by Pub. L. 110–458 effective as if included
in the provisions of Pub. L. 109–280 to which the amend-
ment relates, except as otherwise provided, see section
112 of Pub. L. 110–458, set out as a note under section 72
of this title.
EFFECTIVE DATE OF 2006 AMENDMENT
Pub. L. 109–280, title I, § 111(b), Aug. 17, 2006, 120 Stat.
826, provided that: ‘‘The amendments made by this sec-
tion [amending this section] shall apply to plan years
beginning after December 31, 2007.’’
Pub. L. 109–280, title II, § 212(e), Aug. 17, 2006, 120 Stat.
917, as amended by Pub. L. 110–458, title I, § 102(b)(3)(B),
(C), Dec. 23, 2008, 122 Stat. 5103, provided that:
‘‘(1) IN GENERAL.—The amendments made by this sec-
tion [enacting section 432 of this title and amending
this section and section 4971 of this title] shall apply
with respect to plan years beginning after 2007, except
that the amendments made by subsection (b) [amend-
ing section 4971 of this title] shall apply to taxable
years beginning after 2007, but only with respect to
plan years beginning after 2007 which end with or with-
in any such taxable year.
‘‘(2) SPECIAL RULE FOR CERTAIN NOTICES.—In any case
in which a plan’s actuary certifies that it is reasonably
expected that a multiemployer plan will be in critical
status under section 432(b)(3) of the Internal Revenue
Code of 1986, as added by this section, with respect to
the first plan year beginning after 2007, the notice re-
quired under subparagraph (D) of such section may be
provided at any time after the date of enactment [Aug.
17, 2006], so long as it is provided on or before the last
date for providing the notice under such subparagraph.
‘‘(3) SPECIAL RULE FOR CERTAIN RESTORED BENEFITS.—
In the case of a multiemployer plan—
‘‘(A) with respect to which benefits were reduced
pursuant to a plan amendment adopted on or after
January 1, 2002, and before June 30, 2005, and
‘‘(B) which, pursuant to the plan document, the
trust agreement, or a formal written communication
from the plan sponsor to participants provided before
June 30, 2005, provided for the restoration of such ben-
efits,
the amendments made by this section shall not apply
to such benefit restorations to the extent that any re-
striction on the providing or accrual of such benefits
would otherwise apply by reason of such amendments.’’
Pub. L. 109–280, title II, § 221(c), Aug. 17, 2006, 120 Stat.
919, as amended by Pub. L. 113–295, div. A, title I,
§ 172(a), (b), Dec. 19, 2014, 128 Stat. 4024, which provided
that the provisions of, and the amendments made by,
sections 201(b), 202, and 212 (enacting section 432 of this
title and section 1085 of Title 29, Labor, amending this
section, section 4971 of this title, and sections 1082 and
1132 of Title 29, and enacting provisions set out as notes
under this section and sections 1082 and 1084 of Title 29)
were not applicable to plan years beginning after Dec.
31, 2014, and if a plan was operating under a funding im-
provement or rehabilitation plan under section 1085 of
Title 29 or section 432 of this title for its last year be-
ginning before Jan. 1, 2015, such plan was to continue to
operate under such funding improvement or rehabilita-
tion plan during any period after Dec. 31, 2014, such
funding improvement or rehabilitation plan was in ef-
fect and all provisions of the Employee Retirement In-
come Security Act of 1974 (29 U.S.C. 1001 et seq.) or this
title relating to the operation of such funding improve-
ment or rehabilitation plan were to continue in effect
during such period, was repealed by Pub. L. 113–235, div.
O, title I, § 101(a), Dec. 16, 2014, 128 Stat. 2774.
[Pub. L. 113–295, div. A, title I, § 172(c), Dec. 19, 2014,
128 Stat. 4024, provided that: ‘‘The amendments made
by this section [directing amendment of section 221(c)
of Pub. L. 109–280, formerly set out above] shall apply
to plan years beginning after December 31, 2014.’’ Those
amendments could not be executed because of the in-
tervening repeal of section 221(c) by Pub. L. 113–235.]
EFFECTIVE DATE OF 2004 AMENDMENT
Amendment by section 101(b)(1)–(3) of Pub. L. 108–218
applicable, except as otherwise provided, to plan years
beginning after Dec. 31, 2003, see section 101(d) of Pub.
L. 108–218, set out as a note under section 404 of this
title.
EFFECTIVE DATE OF 2002 AMENDMENT
Amendment by section 411(v)(1) of Pub. L. 107–147 ef-
fective as if included in the provisions of the Economic
Growth and Tax Relief Reconciliation Act of 2001, Pub.
L. 107–16, to which such amendment relates, see section
411(x) of Pub. L. 107–147, set out as a note under section
25B of this title.
EFFECTIVE DATE OF 2001 AMENDMENT
Pub. L. 107–16, title VI, § 651(c), June 7, 2001, 115 Stat.
129, provided that: ‘‘The amendments made by this sec-
tion [amending this section and section 1082 of Title 29,
Labor] shall apply to plan years beginning after Decem-
ber 31, 2001.’’
Pub. L. 107–16, title VI, § 661(c), June 7, 2001, 115 Stat.
142, provided that: ‘‘The amendments made by this sec-
tion [amending this section and section 1082 of Title 29,
Labor] shall apply to plan years beginning after Decem-
ber 31, 2001.’’
EFFECTIVE DATE OF 1997 AMENDMENT
Pub. L. 105–34, title XV, § 1521(d)(1), Aug. 5, 1997, 111
Stat. 1070, provided that: ‘‘The amendments made by
this section [amending this section and section 1082 of
Title 29, Labor] shall apply to plan years beginning
after December 31, 1998.’’
Pub. L. 105–34, title XVI, § 1604(b)(4), Aug. 5, 1997, 111
Stat. 1097, provided that: ‘‘The amendments made by
this subsection [amending this section, section 6621 of
this title, section 1082 of Title 29, Labor, and provisions
set out as a note under section 411 of this title] shall
take effect as if included in the sections of the Uruguay
Page 1387
TITLE 26—INTERNAL REVENUE CODE
§ 412
Round Agreements Act [Pub. L. 103–465] to which they
relate.’’
EFFECTIVE DATE OF 1994 AMENDMENT
Amendment by section 751(a)(1)–(9)(A), (10) of Pub. L.
103–465 applicable to plan years beginning after Dec. 31,
1994, see section 751(b)(1) of Pub. L. 103–465, set out as
a note under section 401 of this title.
Pub. L. 103–465, title VII, § 752(b), Dec. 8, 1994, 108 Stat.
5023, provided that:
‘‘(1) IN GENERAL.—The amendment made by this sec-
tion [amending this section] shall apply to changes in
assumptions for plan years beginning after October 28,
1993.
‘‘(2) CERTAIN CHANGES CEASE TO BE EFFECTIVE.—In the
case of changes in assumptions for plan years beginning
after December 31, 1992, and on or before October 28,
1993, such changes shall cease to be effective for plan
years beginning after December 31, 1994, if—
‘‘(A) such change would have required the approval
of the Secretary of the Treasury had such amend-
ment applied to such change, and
‘‘(B) such change is not so approved.’’
Pub. L. 103–465, title VII, § 753(b), Dec. 8, 1994, 108 Stat.
5023, provided that: ‘‘The amendment made by this sec-
tion [amending this section] shall apply to plan years
beginning after December 31, 1994, with respect to col-
lective bargaining agreements in effect on or after Jan-
uary 1, 1995.’’
Pub. L. 103–465, title VII, § 754(b), Dec. 8, 1994, 108 Stat.
5023, provided that: ‘‘The amendment made by this sec-
tion [amending this section] shall apply to plan years
beginning after the date of enactment of this Act [Dec.
8, 1994].’’
Pub. L. 103–465, title VII, § 768(c), Dec. 8, 1994, 108 Stat.
5041, provided that: ‘‘The amendments made by this
section [amending this section and section 1082 of Title
29, Labor] shall be effective for installments and other
payments required under section 412 of the Internal
Revenue Code of 1986 or under part 3 of subtitle B [of
title I] of the Employee Retirement Income Security
Act of 1974 [29 U.S.C. 1081 et seq.] that become due on
or after the date of enactment [Dec. 8, 1994].’’
EFFECTIVE DATE OF 1989 AMENDMENT
Amendment by Pub. L. 101–239 effective, except as
otherwise provided, as if included in the provision of
the Pension Protection Act, Pub. L. 100–203, §§ 9302–9346,
to which such amendment relates, see section 7882 of
Pub. L. 101–239, set out as a note under section 401 of
this title.
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by Pub. L. 100–647 effective as if included
in the amendments made by the provisions of the Om-
nibus Budget Reconciliation Act of 1987, Pub. L. 100–203,
to which it relates, see section 2005(e) of Pub. L. 100–647,
as amended, set out as a note under section 404 of this
title.
EFFECTIVE DATE OF 1987 AMENDMENT
Pub. L. 100–203, title IX, § 9301(c)(1), (2), Dec. 22, 1987,
101 Stat. 1330–333, provided that:
‘‘(1) IN GENERAL.—The amendments made by this sec-
tion [amending this section and section 1082 of Title 29,
Labor] shall apply to years beginning after December
31, 1987.
‘‘(2) REGULATIONS.—The Secretary of the Treasury or
his delegate shall prescribe such regulations as are nec-
essary to carry out the amendments made by this sec-
tion no later than August 15, 1988.’’
Pub. L. 100–203, title IX, § 9303(e), Dec. 22, 1987, 101
Stat. 1330–342, as amended by Pub. L. 101–239, title VII,
§ 7881(a)(7), Dec. 19, 1989, 103 Stat. 2436, provided that:
‘‘(1) IN
GENERAL.—Except as provided in this sub-
section, the amendments made by this section [amend-
ing this section and section 1082 of Title 29, Labor]
shall apply with respect to plan years beginning after
December 31, 1988.
‘‘(2) SUBSECTIONS (c) AND (d).—The amendments made
by subsections (c) [set out below] and (d) [amending
this section and section 1082 of Title 29] shall apply
with respect to years beginning after December 31, 1987.
‘‘(3) SPECIAL RULE FOR STEEL COMPANIES.—
‘‘(A) IN GENERAL.—For any plan year beginning be-
fore January 1, 1994, any increase in the funding
standard account under [former] section 412(l) of the
1986 Code or section 302(d) of ERISA (as added by this
section) [29 U.S.C. 1082(d)] with respect to any steel
employee plan shall not exceed the sum of—
‘‘(i) the required percentage of the current liabil-
ity under such plan, plus
‘‘(ii) the amount determined under subparagraph
(C)(i) for such plan year.
‘‘(B) REQUIRED PERCENTAGE.—For purposes of sub-
paragraph (A), the term ‘required percentage’ means,
with respect to any plan year, the excess (if any) of—
‘‘(i) the sum of—
‘‘(I) the funded current liability percentage as
of the beginning of the 1st plan year beginning
after December 31, 1988 (determined without re-
gard to any plan amendment adopted after June
30, 1987), plus
‘‘(II) 1 percentage point for the plan year for
which the determination under this paragraph is
being made and for each prior plan year beginning
after December 31, 1988, over
‘‘(ii) the funded current liability percentage as of
the beginning of the plan year for which such deter-
mination is being made.
‘‘(C) SPECIAL RULES FOR CONTINGENT EVENTS.—In the
case of any unpredictable contingent event benefit
with respect to which the event on which such bene-
fits are contingent occurs after December 17, 1987—
‘‘(i) AMORTIZATION AMOUNT.—For purposes of sub-
paragraph (A)(ii), the amount determined under
this clause for any plan year is the amount which
would be determined if the unpredictable contin-
gent event benefit liability were amortized in equal
annual installments over 10 plan years (beginning
with the plan year in which such event occurs).
‘‘(ii) BENEFIT AND CONTRIBUTIONS NOT TAKEN INTO
ACCOUNT.—For purposes of subparagraph (B), in de-
termining the funded current liability percentage
for any plan year, there shall not be taken into ac-
count—
‘‘(I) the unpredictable contingent event benefit
liability, or
‘‘(II) any amount contributed to the plan which
is attributable to clause (i) (and any income allo-
cable to such amount).
‘‘(D) STEEL EMPLOYEE PLAN.—For purposes of this
paragraph, the term ‘steel employee plan’ means any
plan if—
‘‘(i) such plan is maintained by a steel company,
and
‘‘(ii) substantially all of the employees covered by
such plan are employees of such company.
‘‘(E) OTHER DEFINITIONS.—For purposes of this para-
graph—
‘‘(i) STEEL COMPANY.—The term ‘steel company’
means any corporation described in section 806(b) of
the Steel Import Stabilization Act [section 806(b) of
Pub. L. 98–573, 19 U.S.C. 2253 note].
‘‘(ii) OTHER DEFINITIONS.—The terms ‘current li-
ability’, ‘funded current liability percentage’, and
‘unpredictable contingent event benefit’ have the
meanings given such terms by [former] section
412(l) of the 1986 Code (as added by this section).
‘‘(F) SPECIAL
RULE.—The provisions of this para-
graph shall apply in the case of a company which was
originally incorporated on April 25, 1927, in Michigan
and reincorporated on June 3, 1968, in Delaware in the
same manner as if such company were a steel com-
pany.’’
Pub. L. 100–203, title IX, § 9304(a)(3), Dec. 22, 1987, 101
Stat. 1330–344, provided that: ‘‘The amendments made
by this subsection [amending this section and section
1082 of Title 29, Labor] shall apply to plan years begin-
ning after December 31, 1987.’’
Page 1388
TITLE 26—INTERNAL REVENUE CODE
§ 412
Pub. L. 100–203, title IX, § 9304(b)(3), Dec. 22, 1987, 101
Stat. 1330–347, provided that: ‘‘The amendments made
by this subsection [amending this section and section
1082 of Title 29] shall apply with respect to plan years
beginning after 1988.’’
Pub. L. 100–203, title IX, § 9304(e)(3), Dec. 22, 1987, 101
Stat. 1330–351, provided that: ‘‘The amendments made
by this subsection [amending this section and section
1082 of Title 29] shall apply to plan years beginning
after December 31, 1987.’’
Pub. L. 100–203, title IX, § 9305(d), Dec. 22, 1987, 101
Stat. 1330–352, provided that: ‘‘The amendments made
by this section [amending this section and sections 414
and 4971 of this title and section 1082 of Title 29] shall
apply with respect to plan years beginning after De-
cember 31, 1987.’’
Pub. L. 100–203, title IX, § 9306(f), Dec. 22, 1987, 101
Stat. 1330–355, as amended by Pub. L. 101–239, title VII,
§ 7881(c)(3), Dec. 19, 1989, 103 Stat. 2439, provided that:
‘‘(1) IN
GENERAL.—Except as provided in this sub-
section, the amendments made by this section [amend-
ing this section and sections 1083, 1084, and 1085a of
Title 29, Labor] shall apply in the case of—
‘‘(A) any application submitted after December 17,
1987, and
‘‘(B) any waiver granted pursuant to such an appli-
cation.
‘‘(2) SPECIAL RULE FOR APPLICATION REQUIREMENT.—
‘‘(A) IN GENERAL.—The amendments made by sub-
sections (a)(1)(A) and (a)(2)(A) [amending this section
and section 1083 of Title 29] shall apply to plan years
beginning after December 31, 1987.
‘‘(B) TRANSITIONAL
RULE
FOR
YEARS
BEGINNING
IN
1988.—In the case of any plan year beginning during
calendar 1988, [former] section 412(d)(4) of the 1986
Code and section 303(d)(1) of ERISA [29 U.S.C.
1083(d)(1)] (as added by subsection (a)(1) [and (2)])
shall be applied by substituting ‘6th month’ for ‘3rd
month’.
‘‘(3) SUBSECTION (b).—The amendments made by sub-
section (b) [amending this section and section 1083 of
Title 29] shall apply to waivers for plan years beginning
after December 31, 1987. For purposes of applying such
amendments, the number of waivers which may be
granted for plan years after December 31, 1987, shall be
determined without regard to any waivers granted for
plan years beginning before January 1, 1988.
‘‘(4) SUBSECTION (d).—The amendments made by sub-
section (d) [amending this section and section 1083 of
Title 29] shall apply to applications submitted more
than 90 days after the date of the enactment of this Act
[Dec. 22, 1987].’’
Amendment by section 9307(a)(1), (b)(1), (e)(1) of Pub.
L. 100–203 applicable to years beginning after Dec. 31,
1987, except that subsec. (b)(2)(B)(iv) and (3)(B)(ii) of
this section (as amended by section 9307(a)(1)(A) of Pub.
L. 100–203) is applicable to gains and losses established
in years beginning after Dec. 31, 1987, see section 9307(f)
of Pub. L. 100–203, as amended, set out as a note under
section 404 of this title.
EFFECTIVE DATE OF 1986 AMENDMENT
Pub. L. 99–272, title XI, § 11015(a)(3), Apr. 7, 1986, 100
Stat. 267, provided that: ‘‘The amendments made by
this subsection [enacting section 1085a of Title 29,
Labor, and amending this section and section 1061 of
Title 29] shall apply with respect to applications for
waivers, extensions, and modifications filed on or after
the date of the enactment of this Act [Apr. 7, 1986].’’
Amendment by sections 11015(b)(2) and 11016(c)(4) of
Pub. L. 99–272 effective Jan. 1, 1986, with certain excep-
tions, see section 11019 of Pub. L. 99–272, set out as a
note under section 1341 of Title 29.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98–369 applicable to obliga-
tions issued after Dec. 31, 1983, see section 491(f)(1) of
Pub. L. 98–369, set out as a note under section 62 of this
title.
EFFECTIVE DATE OF 1980 AMENDMENT
Amendment by Pub. L. 96–364 effective Sept. 26, 1980,
see section 210(a) of Pub. L. 96–364, set out as an Effec-
tive Date note under section 194A of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by section 1901(a)(63) of Pub. L. 94–455 ef-
fective for taxable years beginning after Dec. 31, 1976,
see section 1901(d) of Pub. L. 94–455, set out as a note
under section 2 of this title.
EFFECTIVE DATE
Section applicable, except as otherwise provided in
section 1017(c) through (i) of Pub. L. 93–406, for plan
years beginning after Sept. 2, 1974, and, in the case of
plans in existence on Jan. 1, 1974, for plan years begin-
ning after Dec. 31, 1975, see section 1017 of Pub. L.
93–406, set out as an Effective Date; Transitional Rules
note under section 410 of this title.
REGULATIONS
Pub. L. 103–465, title VII, § 769, Dec. 8, 1994, 108 Stat.
5041, as amended by Pub. L. 105–34, title XV, § 1508(a),
Aug. 5, 1997, 111 Stat. 1067; Pub. L. 108–218, title II,
§ 201(a), Apr. 10, 2004, 118 Stat. 608; Pub. L. 109–280, title
I, § 115(d)(1), (e)(1), Aug. 17, 2006, 120 Stat. 856, provided
that:
‘‘(a) FUNDING
RULES
NOT
TO
APPLY
TO
CERTAIN
PLANS.—Any changes made by this Act [Pub. L. 103–465]
to section 412 of the Internal Revenue Code of 1986 or to
part 3 of subtitle B of title I of the Employee Retire-
ment Income Security Act of 1974 [29 U.S.C. 1081 et seq.]
shall not apply to—
‘‘(1) a plan which is, on the date of enactment of
this Act [Dec. 8, 1994], subject to a restoration pay-
ment schedule order issued by the Pension Benefit
Guaranty Corporation that meets the requirements
of section 1.412(c)(1)–3 of the Treasury Regulations, or
‘‘(2) a plan established by an affected air carrier (as
defined under section 4001(a)(14)(C)(ii)(I) of such Act
[29 U.S.C. 1301(a)(14)(C)(ii)(I)]) and assumed by a new
plan sponsor pursuant to the terms of a written
agreement with the Pension Benefit Guaranty Cor-
poration dated January 5, 1993, and approved by the
United States Bankruptcy Court for the District of
Delaware on December 30, 1992.
‘‘(b) CHANGE IN ACTUARIAL METHOD.—Any amortiza-
tion installments for bases established under [former]
section 412(b) of the Internal Revenue Code of 1986 and
section 302(b) of the Employee Retirement Income Se-
curity Act of 1974 [29 U.S.C. 1082(b)] for plan years be-
ginning after December 31, 1987, and before January 1,
1993, by reason of nonelective changes under the frozen
entry age actuarial cost method shall not be included
in the calculation of offsets under [former] section
412(l)(1)(A)(ii) of such Code and section 302(d)(1)(A)(ii) of
such Act for the 1st 5 plan years beginning after De-
cember 31, 1994.’’
[Pub. L. 109–280, title I, § 115(d)(2), Aug. 17, 2006, 120
Stat. 856, provided that: ‘‘The amendment made by
paragraph (1) [amending section 769 of Pub. L. 103–465,
set out above] shall apply to plan years beginning after
December 31, 2005.’’]
[Pub. L. 109–280, title I, § 115(e)(2), Aug. 17, 2006, 120
Stat. 856, provided that: ‘‘The amendment made by
paragraph (1) [amending section 769 of Pub. L. 103–465,
set out above] shall take effect on December 31, 2007,
and shall apply to plan years beginning after such
date.’’]
[Pub. L. 108–218, title II, § 201(b), Apr. 10, 2004, 118
Stat. 608, provided that: ‘‘The amendments made by
this section [amending section 769 of Pub. L. 103–465, set
out above] shall apply to plan years beginning after De-
cember 31, 2003.’’]
[Pub. L. 105–34, title XV, § 1508(b), Aug. 5, 1997, 111
Stat. 1068, provided that: ‘‘The amendment made by
this section [amending section 769 of Pub. L. 103–465, set
out above] shall apply to plan years beginning after De-
cember 31, 1996.’’]
Page 1389
TITLE 26—INTERNAL REVENUE CODE
§ 413
Pub. L. 100–203, title IX, § 9303(c), Dec. 22, 1987, 101
Stat. 1330–342, provided that: ‘‘Effective with respect to
plan years beginning after December 31, 1987, the provi-
sions of the regulations prescribed under section
412(c)(2) of the 1986 Code which permit asset valuations
to be based on a range between 85 percent and 115 per-
cent of average value shall have no force and effect
with respect to plans other than multiemployer plans
(as defined in section 414(f) of the 1986 Code). The Sec-
retary of the Treasury or his delegate shall amend such
regulations to carry out the purposes of the preceding
sentence.’’
APPLICABILITY OF AMENDMENTS BY SUBTITLES A AND B
OF TITLE I OF PUB. L. 109–280
For special rules on applicability of amendments by
subtitles A (§§ 101–108) and B (§§ 111–116) of title I of Pub.
L. 109–280 to certain eligible cooperative plans, PBGC
settlement plans, and eligible government contractor
plans, see sections 104, 105, and 106 of Pub. L. 109–280,
set out as notes under section 401 of this title.
SPECIAL RULE
FOR CERTAIN BENEFITS FUNDED UNDER
AN AGREEMENT APPROVED
BY
THE PENSION BENEFIT
GUARANTY CORPORATION
Pub. L. 109–280, title II, § 206, Aug. 17, 2006, 120 Stat.
889, provided that: ‘‘In the case of a multiemployer plan
that is a party to an agreement that was approved by
the Pension Benefit Guaranty Corporation prior to
June 30, 2005, and that—
‘‘(1) increases benefits, and
‘‘(2) provides for special withdrawal liability rules
under section 4203(f) of the Employee Retirement In-
come Security Act of 1974 (29 U.S.C. 1383[(f)]),
the amendments made by sections 201, 202, 211, and 212
of this Act [enacting sections 431 and 432 of this title
and sections 1084 and 1085 of Title 29, Labor, and amend-
ing this section, section 4971 of this title, and sections
1081, 1082, and 1132 of Title 29] shall not apply to the
benefit increases under any plan amendment adopted
prior to June 30, 2005, that are funded pursuant to such
agreement if the plan is funded in compliance with
such agreement (and any amendments thereto).’’
APPLICABILITY OF SECTION TO CERTAIN PLANS
MAINTAINED BY COMMERCIAL AIRLINES
For special rules on applicability of this section to
certain plans maintained by commercial airlines, see
section 402 of Pub. L. 109–280, set out as a note under
section 430 of this title.
EFFECT OF ELECTION
Pub. L. 108–218, title I, § 102(c), Apr. 10, 2004, 118 Stat.
602, provided that: ‘‘An election under section 302(d)(12)
of the Employee Retirement Income Security Act of
1974 [29 U.S.C. 1082(d)(12)] or [former] section 412(l)(12)
of the Internal Revenue Code of 1986 (as added by this
section) with respect to a plan shall not invalidate any
obligation (pursuant to a collective bargaining agree-
ment in effect on the date of the election) to provide
benefits, to change the accrual of benefits, or to change
the rate at which benefits become nonforfeitable under
the plan.’’
SPECIAL RULE FOR UNAMORTIZED BALANCES UNDER
EXISTING LAW
Pub. L. 105–34, title XV, § 1521(d)(2), Aug. 5, 1997, 111
Stat. 1070, provided that: ‘‘The unamortized balance (as
of the close of the plan year preceding the plan’s first
year beginning in 1999) of any amortization base estab-
lished under [former] section 412(c)(7)(D)(iii) of such
Code
[26
U.S.C.
412(c)(7)(D)(iii)]
and
section
302(c)(7)(D)(iii) of such Act [29 U.S.C. 1082(c)(7)(D)(iii)]
(as repealed by subsection (c)(3)) for any plan year be-
ginning before 1999 shall be amortized in equal annual
installments (until fully amortized) over a period of
years equal to the excess of—
‘‘(A) 20 years, over
‘‘(B) the number of years since the amortization
base was established.’’
ALTERNATIVE AMORTIZATION METHOD FOR CERTAIN
MULTIEMPLOYER PLANS
Pub. L. 93–406, title II, § 1013(d), Sept. 2, 1974, 88 Stat.
923, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100
Stat. 2095, provided that:
‘‘(1) GENERAL RULE.—In the case of any multiem-
ployer plan (as defined in section 414(f) of the Internal
Revenue Code of 1986 [formerly I.R.C. 1954]) to which
section 412 of such Code applies, if—
‘‘(A) on January 1, 1974, the contributions under
the plan were based on a percentage of pay,
‘‘(B) the actuarial assumptions with respect to
pay are reasonably related to past and projected ex-
perience, and
‘‘(C) the rates of interest under the plan are de-
termined on the basis of reasonable actuarial as-
sumptions,
the plan may elect (in such manner and at such time
as may be provided under regulations prescribed by
the Secretary of the Treasury or his delegate) to fund
the unfunded past service liability under the plan ex-
isting as of the date 12 months following the first
date on which such section 412 first applies to the
plan by charging the funding standard account with
an equal annual percentage of the aggregate pay of
all participants in the plan in lieu of the level dollar
charges to such account required under clauses (i),
(ii), and (iii) of [former] section 412(b)(2)(B) of such
Code and section 302(b)(2)(B)(i), (ii), and (iii) of this
Act [section 1082(b)(2)(B)(i), (ii), and (iii) of Title 29,
Labor].
‘‘(2) LIMITATION.—In the case of a plan which makes
an election under paragraph (1), the aggregate of the
charges required under such paragraph for a plan
year shall not be less than the interest on the un-
funded past service liabilities described in clauses (i),
(ii), and (iii) of [former] section 412(b)(2)(B) of the In-
ternal Revenue Code of 1986.’’
§ 413. Collectively bargained plans, etc.
(a) Application of subsection (b)
Subsection (b) applies to—
(1) a plan maintained pursuant to an agree-
ment which the Secretary of Labor finds to be
a collective-bargaining agreement between
employee representatives and one or more em-
ployers, and
(2) each trust which is a part of such plan.
(b) General rule
If this subsection applies to a plan, notwith-
standing any other provision of this title—
(1) Participation
Section 410 shall be applied as if all employ-
ees of each of the employers who are parties to
the collective-bargaining agreement and who
are subject to the same benefit computation
formula under the plan were employed by a
single employer.
(2) Discrimination, etc.
Sections 401(a)(4) and 411(d)(3) shall be ap-
plied as if all participants who are subject to
the same benefit computation formula and
who are employed by employers who are par-
ties to the collective bargaining agreement
were employed by a single employer.
(3) Exclusive benefit
For purposes of section 401(a), in deter-
mining whether the plan of an employer is for
the exclusive benefit of his employees and
their beneficiaries, all plan participants shall
be considered to be his employees.
Cross-references
Connections may be documented source relationships, shared citations or nearby passages. Each explains its basis; a connection alone does not establish applicability to your situation.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Presidential action** If the United States International Trade Commission (hereinafter referred to in this part as the “Commission”) determines under [section 2252(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title19-section2252/b&num=0&edition=prelim) that an article is being imported into the United States in such increased quantities as to be a substantial cause of serious injury, or the threat thereof, to the domestic industry producing an article like or directly competitive with the imported article, the President, in accordance with this part, shall take all appropriate and feasible action within his power which the President determines will facilitate efforts by the domestic industry to make a positive adjustment to import competition and provide greater economic and social benefits than costs.
**(b) Positive adjustment to import competition**
(1) For purposes of this part, a positive adjustment to import competition occurs when—
(A) the domestic industry—
(i) is able to compete successfully with imports after actions taken under [section 2254 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title19-section2254&num=0&edition=prelim) terminate, or
(ii) the domestic industry experiences an orderly transfer of resources to other productive pursuits; and
(B) dislocated workers in the industry experience an orderly transition to productive pursuits.
(2) The domestic industry may be considered to have made a positive adjustment to import competition even though the industry is not of the same size and composition as the industry at the time the investigation was initiated under [section 2252(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title19-sectio
Stored review status: release_metadata_unconfirmed. The source passage cites 19 U.S.C. § 2253. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
§ 2253. Action by President after determination
of import injury
(a) In general
(1)(A) After receiving a report under section
2252(f) of this title containing an affirmative
finding regarding serious injury, or the threat
thereof, to a domestic industry, the President
shall take all appropriate and feasible action
within his power which the President deter-
mines will facilitate efforts by the domestic in-
dustry to make a positive adjustment to import
competition and provide greater economic and
social benefits than costs.
(B) The action taken by the President under
subparagraph (A) shall be to such extent, and for
such duration, subject to subsection (e)(1), that
the President determines to be appropriate and
feasible under such subparagraph.
(C) The interagency trade organization estab-
lished under section 1872(a) of this title shall,
with respect to each affirmative determination
reported under section 2252(f) of this title, make
a recommendation to the President as to what
action the President should take under subpara-
graph (A).
(2) In determining what action to take under
paragraph (1), the President shall take into ac-
count—
(A) the recommendation and report of the
Commission;
(B) the extent to which workers and firms in
the domestic industry are—
Page 569
TITLE 19—CUSTOMS DUTIES
§ 2253
(i) benefitting from adjustment assistance
and other manpower programs, and
(ii) engaged in worker retraining efforts;
(C) the efforts being made, or to be imple-
mented, by the domestic industry (including
the efforts included in any adjustment plan or
commitment submitted to the Commission
under section 2252(a) of this title) to make a
positive adjustment to import competition;
(D) the probable effectiveness of the actions
authorized under
Stored review status: historical_2024_not_currentness_verified. The source passage cites 19 U.S.C. § 2253. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Requirement to meet minimum funding standard**
(1) **In general** — A plan to which this section applies shall satisfy the minimum funding standard applicable to the plan for any plan year.
(2) **Minimum funding standard** — For purposes of paragraph (1), a plan shall be treated as satisfying the minimum funding standard for a plan year if—
(A) in the case of a defined benefit plan which is not a multiemployer plan or a CSEC plan, the employer makes contributions to or under the plan for the plan year which, in the aggregate, are not less than the minimum required contribution determined under section 430 for the plan for the plan year,
(B) in the case of a money purchase plan which is not a multiemployer plan, the employer makes contributions to or under the plan for the plan year which are required under the terms of the plan,
(C) in the case of a multiemployer plan, the employers make contributions to or under the plan for any plan year which, in the aggregate, are sufficient to ensure that the plan does not have an accumulated funding deficiency under section 431 as of the end of the plan year, and
(D) in the case of a CSEC plan, the employers make contributions to or under the plan for any plan year which, in the aggregate, are sufficient to ensure that the plan does not have an accumulated funding deficiency under section 433 as of the end of the plan year.
**(b) Liability for contributions**
(1) **In general** — Except as provided in paragraph (2), the amount of any contribution required by this section (including any required installments under paragraphs (3) and (4) of section 430(j) or under section 433(f)) shall be paid by the employer responsible for making contributions to or under the plan.
(2) **Joint and several liability where emp
**(a) Benefit plans as affecting interstate commerce and the Federal taxing power** The Congress finds that the growth in size, scope, and numbers of employee benefit plans in recent years has been rapid and substantial; that the operational scope and economic impact of such plans is increasingly interstate; that the continued well-being and security of millions of employees and their dependents are directly affected by these plans; that they are affected with a national public interest; that they have become an important factor affecting the stability of employment and the successful development of industrial relations; that they have become an important factor in commerce because of the interstate character of their activities, and of the activities of their participants, and the employers, employee organizations, and other entities by which they are established or maintained; that a large volume of the activities of such plans are carried on by means of the mails and instrumentalities of interstate commerce; that owing to the lack of employee information and adequate safeguards concerning their operation, it is desirable in the interests of employees and their beneficiaries, and to provide for the general welfare and the free flow of commerce, that disclosure be made and safeguards be provided with respect to the establishment, operation, and administration of such plans; that they substantially affect the revenues of the United States because they are afforded preferential Federal tax treatment; that despite the enormous growth in such plans many employees with long years of employment are losing anticipated retirement benefits owing to the lack of vesting provisions in such plans; that owing to the inadequacy of current minimum standards, the soundness and stabilit
Stored review status: release_metadata_unconfirmed. The source passage cites 29 U.S.C. § 1001. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
§ 1001. Congressional findings and declaration of
policy
(a) Benefit plans as affecting interstate com-
merce and the Federal taxing power
The Congress finds that the growth in size,
scope, and numbers of employee benefit plans in
recent years has been rapid and substantial;
that the operational scope and economic impact
of such plans is increasingly interstate; that the
continued well-being and security of millions of
employees and their dependents are directly af-
fected by these plans; that they are affected
with a national public interest; that they have
become an important factor affecting the sta-
bility of employment and the successful devel-
opment of industrial relations; that they have
become an important factor in commerce be-
cause of the interstate character of their activi-
ties, and of the activities of their participants,
and the employers, employee organizations, and
other entities by which they are established or
maintained; that a large volume of the activi-
ties of such plans are carried on by means of the
mails and instrumentalities of interstate com-
merce; that owing to the lack of employee infor-
mation and adequate safeguards concerning
their operation, it is desirable in the interests of
employees and their beneficiaries, and to pro-
vide for the general welfare and the free flow of
commerce, that disclosure be made and safe-
guards be provided with respect to the establish-
ment, operation, and administration of such
plans; that they substantially affect the reve-
nues of the United States because they are af-
forded preferential Federal tax treatment; that
despite the enormous growth in such plans many
employees with long years of employment are
losing anticipated retirement benefits owing to
the lack of vesting provi
Stored review status: historical_2024_not_currentness_verified. The source passage cites 29 U.S.C. § 1001. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Plans excepted from applicability of this part** This part shall apply to any employee pension benefit plan described in [section 1003(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1003/a&num=0&edition=prelim), (and not exempted under [section 1003(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1003/b&num=0&edition=prelim)), other than—
(1) an employee welfare benefit plan;
(2) an insurance contract plan described in subsection (b);
(3) a plan which is unfunded and is maintained by an employer primarily for the purpose of providing deferred compensation for a select group of management or highly compensated employees;
(4)
(A) a plan which is established and maintained by a society, order, or association described in section 501(c)(8) or (9) of title 26, if no part of the contributions to or under such plan are made by employers of participants in such plan; or
(B) a trust described in [section 501(c)(18) of title 26](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section501/c/18&num=0&edition=prelim);
(5) a plan which has not at any time after September 2, 1974, provided for employer contributions;
(6) an agreement providing payments to a retired partner or deceased partner or a deceased partner’s successor in interest as described in [section 736 of title 26](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section736&num=0&edition=prelim);
(7) an individual retirement account or annuity as described in [section 408(a) of title 26](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section408/a&num=0&edition=prelim), or a retirement bond described in [section 409 of title 26](https://uscode.house.g
Stored review status: release_metadata_unconfirmed. The source passage cites 29 U.S.C. § 1081. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
§ 1081. Coverage
(a) Plans excepted from applicability of this part
This part shall apply to any employee pension
benefit plan described in section 1003(a) of this
title, (and not exempted under section 1003(b) of
this title), other than—
(1) an employee welfare benefit plan;
(2) an insurance contract plan described in
subsection (b);
(3) a plan which is unfunded and is main-
tained by an employer primarily for the pur-
pose of providing deferred compensation for a
Page 448
TITLE 29—LABOR
§ 1081
select group of management or highly com-
pensated employees;
(4)(A) a plan which is established and main-
tained by a society, order, or association de-
scribed in section 501(c)(8) or (9) of title 26, if
no part of the contributions to or under such
plan are made by employers of participants in
such plan; or
(B) a trust described in section 501(c)(18) of
title 26;
(5) a plan which has not at any time after
September 2, 1974, provided for employer con-
tributions;
(6) an agreement providing payments to a re-
tired partner or deceased partner or a deceased
partner’s successor in interest as described in
section 736 of title 26;
(7) an individual retirement account or an-
nuity as described in section 408(a) of title 26,
or a retirement bond described in section 409
of title 26 (as effective for obligations issued
before January 1, 1984);
(8) an individual account plan (other than a
money purchase plan) and a defined benefit
plan to the extent it is treated as an indi-
vidual account plan (other than a money pur-
chase plan) under section 1002(35)(B) of this
title;
(9) an excess benefit plan; or
(10) any plan, fund or program under which
an employer, all of whose stock is directly or
indirectly owned by employees, former em-
ployees
or
their
b
Stored review status: historical_2024_not_currentness_verified. The source passage cites 29 U.S.C. § 1081. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Requirement to meet minimum funding standard**
(1) **In general** — A plan to which this part applies shall satisfy the minimum funding standard applicable to the plan for any plan year.
(2) **Minimum funding standard** — For purposes of paragraph (1), a plan shall be treated as satisfying the minimum funding standard for a plan year if—
(A) in the case of a defined benefit plan which is a single-employer plan (other than a CSEC plan), the employer makes contributions to or under the plan for the plan year which, in the aggregate, are not less than the minimum required contribution determined under [section 1083 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1083&num=0&edition=prelim) for the plan for the plan year,
(B) in the case of a money purchase plan which is a single-employer plan, the employer makes contributions to or under the plan for the plan year which are required under the terms of the plan,
(C) in the case of a multiemployer plan, the employers make contributions to or under the plan for any plan year which, in the aggregate, are sufficient to ensure that the plan does not have an accumulated funding deficiency under [section 1084 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1084&num=0&edition=prelim) as of the end of the plan year, and
(D) in the case of a CSEC plan, the employers make contributions to or under the plan for any plan year which, in the aggregate, are sufficient to ensure that the plan does not have an accumulated funding deficiency under [section 1085a of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1085a&num=0&edition=prelim) as of the end of the plan year.
**(b) Liability for contribu
Stored review status: release_metadata_unconfirmed. The source passage cites 29 U.S.C. § 1082. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
§ 1082. Minimum funding standards
(a) Requirement to meet minimum funding
standard
(1) In general
A plan to which this part applies shall sat-
isfy the minimum funding standard applicable
to the plan for any plan year.
(2) Minimum funding standard
For purposes of paragraph (1), a plan shall be
treated as satisfying the minimum funding
standard for a plan year if—
(A) in the case of a defined benefit plan
which is a single-employer plan (other than
a CSEC plan), the employer makes contribu-
tions to or under the plan for the plan year
which, in the aggregate, are not less than
the minimum required contribution deter-
mined under section 1083 of this title for the
plan for the plan year,
(B) in the case of a money purchase plan
which is a single-employer plan, the em-
ployer makes contributions to or under the
plan for the plan year which are required
under the terms of the plan,
(C) in the case of a multiemployer plan,
the employers make contributions to or
under the plan for any plan year which, in
the aggregate, are sufficient to ensure that
the plan does not have an accumulated fund-
ing deficiency under section 1084 of this title
as of the end of the plan year, and
(D) in the case of a CSEC plan, the employ-
ers make contributions to or under the plan
for any plan year which, in the aggregate,
are sufficient to ensure that the plan does
not have an accumulated funding deficiency
under section 1085a of this title as of the end
of the plan year.
(b) Liability for contributions
(1) In general
Except as provided in paragraph (2), the
amount of any contribution required by this
section (including any required installments
under paragraphs (3) and (4) of section 1083(j)
of this title or under section 1085a(f) of this
title) shall be p
Stored review status: historical_2024_not_currentness_verified. The source passage cites 29 U.S.C. § 1082. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Minimum required contribution** For purposes of this section and [section 1082(a)(2)(A) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1082/a/2/A&num=0&edition=prelim), except as provided in subsection (f), the term “minimum required contribution” means, with respect to any plan year of a single-employer plan—
(1) in any case in which the value of plan assets of the plan (as reduced under subsection (f)(4)(B)) is less than the funding target of the plan for the plan year, the sum of—
(A) the target normal cost of the plan for the plan year,
(B) the shortfall amortization charge (if any) for the plan for the plan year determined under subsection (c), and
(C) the waiver amortization charge (if any) for the plan for the plan year as determined under subsection (e); or
(2) in any case in which the value of plan assets of the plan (as reduced under subsection (f)(4)(B)) equals or exceeds the funding target of the plan for the plan year, the target normal cost of the plan for the plan year reduced (but not below zero) by such excess.
**(b) Target normal cost** For purposes of this section:
(1) **In general** — Except as provided in subsection (i)(2) with respect to plans in at-risk status, the term “target normal cost” means, for any plan year, the excess of—
(A) the sum of—
(i) the present value of all benefits which are expected to accrue or to be earned under the plan during the plan year, plus
(ii) the amount of plan-related expenses expected to be paid from plan assets during the plan year, over
(B) the amount of mandatory employee contributions expected to be made during the plan year.
(2) **Special rule for increase in compensation** — For purposes of this subsection, if any benefit attribu
Stored review status: release_metadata_unconfirmed. The source passage cites 29 U.S.C. § 1083. This identifies an authority to review, not proof of applicability.