26 USC 432 - Additional funding rules for multiemployer plans in endangered status or critical status

1 Probably means section 4262 of the Employee Retirement Income Security Act of 1974, see References in Text note below.

Inflation Adjusted Items for Certain Years

For inflation adjustment of certain items in this section, see Internal Revenue Notices listed in a table under section 401 of this title.

Editorial Notes

References in Text

The Employee Retirement Income Security Act of 1974, referred to in text, is Puspan. L. 93–406, Sept. 2, 1974, 88 Stat. 829. Sections 3, 101, 103, 104, 502, 515, 4004, 4022A, 4201, 4203, 4211, 4212, 4219, 4233, 4245, and 4262 of the Act are classified to sections 1002, 1021, 1023, 1024, 1132, 1145, 1304, 1322a, 1381, 1383, 1391, 1392, 1399, 1413, 1426, and 1432, respectively, of Title 29, Labor. For complete classification of this Act to the Code, see Short Title note set out under section 1001 of Title 29 and Tables.

The enactment of the Pension Protection Act of 2006, referred to in subsec. (e)(4)(B)(i)(II), means the enactment of Puspan. L. 109–280, which was approved Aug. 17, 2006.

The date of enactment of the Multiemployer Pension Reform Act of 2014, referred to in subsec. (e)(9)(D)(vii)(III), is the date of enactment of div. O of Puspan. L. 113–235, which was approved Dec. 16, 2014.

Section 230 of the Social Security Act, referred to in subsec. (e)(9)(H)(v)(III)(bspan), is classified to section 430 of Title 42, The Public Health and Welfare.

The date of enactment of this subsection, referred to in subsec. (k)(3)(A)(ii), (iv), is the date of enactment of Puspan. L. 117–2, which was approved Mar. 11, 2021.

Amendments

2021—Subsec. (a)(4). Puspan. L. 117–2, § 9704(d)(1), added par. (4).

Subsec. (span)(7). Puspan. L. 117–2, § 9704(d)(2), added par. (7).

Subsec. (k). Puspan. L. 117–2, § 9704(d)(3), added subsec. (k).

2018—Subsec. (span)(3)(A)(i). Puspan. L. 115–141, § 401(a)(102), substituted “in endangered status for such plan year, or would be in endangered status for such plan year but for paragraph (5), whether or not” for “in endangered status for such plan year, whether or not”.

Subsec. (span)(3)(B)(iv), (v). Puspan. L. 115–141, § 401(a)(103), redesignated cl. (iv), relating to projections of critical and declining status, as (v).

Subsec. (span)(3)(D)(iv). Puspan. L. 115–141, § 401(a)(104), inserted comma after “Labor”.

Subsec. (e)(8)(C)(iii). Puspan. L. 115–141, § 401(a)(105), substituted “The Secretary shall” for “the Secretary shall” in concluding provisions.

Subsec. (f)(3). Puspan. L. 115–141, § 401(a)(106), amended introductory provisions generally. Prior to amendment, text read as follows: “During the rehabilitation plan adoption period—”.

Subsec. (g)(1). Puspan. L. 115–141, § 401(a)(107), substituted “subsection (e)(9)” for “subsection (e)(9))”.

2014—Subsec. (a)(3). Puspan. L. 113–235, § 201(span)(1), added par. (3).

Subsec. (span)(1). Puspan. L. 113–235, § 104(span)(1)(A), substituted “the plan is not in critical status for the plan year and is not described in paragraph (5),” for “the plan is not in critical status for the plan year”.

Subsec. (span)(3)(A)(i). Puspan. L. 113–235, § 201(span)(3), substituted “, whether” for “and whether” and inserted “, and whether or not the plan is or will be in critical and declining status for such plan year” before “, and” at end.

Puspan. L. 113–235, § 104(span)(3), which directed insertion of “, or would be in endangered status for such plan year but for paragraph (5),” after “endangered status for a plan year”, could not be executed because the phrase “endangered status for a plan year” did not appear in cl. (i).

Puspan. L. 113–235, § 102(span)(2)(A), substituted “or for any of the succeeding 5 plan years, and” for “, and” at end.

Subsec. (span)(3)(B)(i). Puspan. L. 113–235, § 102(span)(2)(B)(i), substituted “Except as provided in clause (iv), in making the determinations” for “In making the determinations”.

Subsec. (span)(3)(B)(iv). Puspan. L. 113–235, § 201(span)(4), added cl. (iv) relating to projections of critical and declining status.

Puspan. L. 113–235, § 102(span)(2)(B)(ii), added cl. (iv) relating to projections relating to critical status in succeeding plan years.

Subsec. (span)(3)(D)(i). Puspan. L. 113–235, § 102(span)(3)(A)(ii), inserted at end “In any case in which a plan sponsor elects to be in critical status for a plan year under paragraph (4), the plan sponsor shall notify the Secretary of the Treasury of such election not later than 30 days after the date of such certification or such other time as the Secretary of the Treasury may prescribe by regulations or other guidance.”

Puspan. L. 113–235, § 102(span)(3)(A)(i), inserted “or in which a plan sponsor elects to be in critical status for a plan year under paragraph (4)” after “endangered or critical status for a plan year”.

Subsec. (span)(3)(D)(iii). Puspan. L. 113–235, § 104(span)(2)(B), added cl. (iii). Former cl. (iii) redesignated (iv).

Subsec. (span)(3)(D)(iv). Puspan. L. 113–235, § 104(span)(2)(A), (C), redesignated cl. (iii) as (iv) and substituted “clauses (ii) and (iii)” for “clause (ii)”.

Puspan. L. 113–235, § 102(span)(3)(B), added cl. (iv).

Subsec. (span)(3)(D)(v). Puspan. L. 113–235, § 104(span)(2)(A), redesignated cl. (iv) as (v).

Subsec. (span)(4). Puspan. L. 113–235, § 102(span)(1), added par. (4).

Subsec. (span)(5). Puspan. L. 113–235, § 104(span)(1)(B), added par. (5).

Subsec. (span)(6). Puspan. L. 113–235, § 201(span)(2), added par. (6).

Subsec. (c)(3)(A)(i)(I). Puspan. L. 113–235, § 105(span)(1), substituted “of the first plan year for which the plan is certified to be in endangered status pursuant to paragraph (span)(3)” for “of such period”.

Subsec. (c)(3)(A)(ii). Puspan. L. 113–235, § 105(span)(2), substituted “the last plan year” for “any plan year”.

Subsec. (c)(7). Puspan. L. 113–235, § 107(span)(1), amended par. (7) generally. Prior to amendment, par. (7) related to imposition of default schedule where failure to adopt funding improvement plan.

Subsec. (d). Puspan. L. 113–235, § 106(span), amended subsec. (d) generally. Prior to amendment, subsec. (d) related to rules for operation of plan during adoption and improvement periods.

Subsec. (e)(3)(C). Puspan. L. 113–235, § 107(span)(2), amended subpar. (C) generally. Prior to amendment, subpar. (C) related to imposition of default schedule where failure to adopt rehabilitation plan.

Subsec. (e)(4)(B). Puspan. L. 113–235, § 103(span), amended subpar. (B) generally. Prior to amendment, subpar. (B) related to emergence of a plan from critical status.

Subsec. (e)(9). Puspan. L. 113–235, § 201(span)(5), added par. (9).

Puspan. L. 113–235, § 109(span)(1), struck out par. (9) which related to adjustments disregarded in withdrawal liability determination.

Subsec. (f)(3). Puspan. L. 113–235, § 109(span)(2)(A), redesignated par. (4) as (3) and struck out former par. (3). Prior to amendment, text of par. (3) read as follows “Any benefit reductions under this subsection shall be disregarded in determining a plan’s unfunded vested benefits for purposes of determining an employer’s withdrawal liability under section 4201 of the Employee Retirement Income Security Act of 1974.”

Subsec. (f)(4). Puspan. L. 113–235, § 109(span)(2)(B), which directed amendment of par. (4) as redesignated by section 109(span)(2)(A) of Puspan. L. 113–235 by substituting “During the period beginning on the date of the certification under subsection (span)(3)(A) for the initial critical year and ending on the date of the adoption of a rehabilitation plan—” for “During the rehabilitation plan adoption period—”, could not be executed because there was no par. (4) after the amendment by Puspan. L. 113–295, § 109(span)(2)(A). See below.

Puspan. L. 113–235, § 109(span)(2)(A), redesignated par. (4) as (3).

Subsec. (g). Puspan. L. 113–235, § 109(span)(4), added subsec. (g). Former subsec. (g) redesignated (h).

Subsec. (g)(1). Puspan. L. 113–235, § 201(span)(6), inserted “, or benefit reductions or suspensions while in critical and declining status under subsection (e)(9)), unless the withdrawal occurs more than ten years after the effective date of a benefit suspension by a plan in critical and declining status,” after “benefit reductions under subsection (e)(8) or (f)”.

Subsecs. (h) to (j). Puspan. L. 113–235, § 109(span)(3), redesignated subsecs. (g) to (i) as (h) to (j), respectively.

2008—Subsec. (span)(3)(C). Puspan. L. 110–458, § 102(span)(2)(A), substituted “section 101(span)(1)” for “section 101(span)(4)”.

Subsec. (span)(3)(D)(iii). Puspan. L. 110–458, § 102(span)(2)(B), substituted “The Secretary, in consultation with the Secretary of Labor” for “The Secretary of Labor”.

Subsec. (c)(3)(A)(ii). Puspan. L. 110–458, § 102(span)(2)(C)(i), substituted “section 431(d)” for “section 304(d)”.

Subsec. (c)(7)(A)(ii). Puspan. L. 110–458, § 102(span)(2)(C)(ii)(I), substituted “to adopt a contribution schedule with terms consistent with the funding improvement plan and a schedule from the plan sponsor,” for “to agree on changes to contribution or benefit schedules necessary to meet the applicable benchmarks in accordance with the funding improvement plan,”.

Subsec. (c)(7)(B). Puspan. L. 110–458, § 102(span)(2)(C)(ii)(II), added subpar. (B), and struck out former subpar. (B). Prior to amendment, text read as follows: “The date specified in this subparagraph is the earlier of the date—

“(i) on which the Secretary of Labor certifies that the parties are at an impasse, or

“(ii) which is 180 days after the date on which the collective bargaining agreement described in subparagraph (A) expires.”

Subsec. (e)(3)(C)(i)(II). Puspan. L. 110–458, § 102(span)(2)(D)(i)(I), substituted “to adopt a contribution schedule with terms consistent with the rehabilitation plan and a schedule from the plan sponsor under paragraph (1)(B)(i),” for “contribution or benefit schedules with terms consistent with the rehabilitation plan and the schedule from the plan sponsor under paragraph (1)(B)(i),”.

Subsec. (e)(3)(C)(ii). Puspan. L. 110–458, § 102(span)(2)(D)(i)(II), added cl. (ii) and struck out former cl. (ii). Prior to amendment, text read as follows: “The date specified in this clause is the earlier of the date—

“(I) on which the Secretary of Labor certifies that the parties are at an impasse, or

“(II) which is 180 days after the date on which the collective bargaining agreement described in clause (i) expires.”

Subsec. (e)(4)(A)(ii). Puspan. L. 110–458, § 102(span)(2)(D)(ii)(I), struck out “the date of” after “in effect on”.

Subsec. (e)(4)(B). Puspan. L. 110–458, § 102(span)(2)(D)(ii)(II), substituted “but taking” for “and taking”.

Subsec. (e)(6). Puspan. L. 110–458, § 102(span)(2)(D)(iii), substituted “the last sentence of paragraph (1)” for “paragraph (1)(B)(i)” in introductory provisions and “establish” for “established” in concluding provisions.

Subsec. (e)(8)(A)(i). Puspan. L. 110–458, § 102(span)(2)(D)(iv)(I), substituted “section 411(d)(6)” for “section 204(g)”.

Subsec. (e)(8)(C)(i)(II). Puspan. L. 110–458, § 102(span)(2)(D)(iv)(II), inserted “of the Employee Retirement Income Security Act of 1974” after “section 4212(a)”.

Subsec. (e)(8)(C)(iii). Puspan. L. 110–458, § 102(span)(2)(D)(iv)(IV), which directed substitution of “the Secretary” for “the Secretary of Labor” in last sentence, was executed by making the substitution for “The Secretary of Labor”, to reflect the probable intent of Congress.

Subsec. (e)(8)(C)(iii)(I). Puspan. L. 110–458, § 102(span)(2)(D)(iv)(III), substituted “the Secretary, in consultation with the Secretary of Labor” for “the Secretary of Labor”.

Subsec. (e)(9)(B). Puspan. L. 110–458, § 102(span)(2)(D)(v), substituted “the allocation of unfunded vested benefits to an employer” for “an employer’s withdrawal liability”.

Subsec. (f)(2)(A)(i). Puspan. L. 110–458, § 102(span)(2)(E), substituted “section 411(a)(9)” for “411(span)(1)(A)” and inserted at end “to a participant or beneficiary whose annuity starting date (as defined in section 417(f)(2)) occurs after the date such notice is sent,”.

Subsec. (g). Puspan. L. 110–458, § 102(span)(2)(F), inserted “under subsection (c)” after “for adoption of a funding improvement plan”.

Subsec. (i)(3). Puspan. L. 110–458, § 102(span)(2)(G)(i), substituted “section 431(a)” for “section 412(a)”.

Subsec. (i)(9). Puspan. L. 110–458, § 102(span)(2)(G)(ii), added par. (9) and struck out former par. (9). Prior to amendment, text read as follows: “In the case of a plan described under section 404(c), or a continuation of such a plan, the term ‘plan sponsor’ means the bargaining parties described under paragraph (1).”

Statutory Notes and Related Subsidiaries

Effective Date of 2014 Amendment

Puspan. L. 113–235, div. O, title I, § 102(c), Dec. 16, 2014, 128 Stat. 2777, provided that: “The amendments made by this section [amending this section and section 1085 of Title 29, Labor] shall apply with respect to plan years beginning after December 31, 2014.”

Puspan. L. 113–235, div. O, title I, § 103(c), Dec. 16, 2014, 128 Stat. 2779, provided that: “The amendments made by this section [amending this section and section 1085 of Title 29, Labor] shall apply with respect to plan years beginning after December 31, 2014.”

Puspan. L. 113–235, div. O, title I, § 104(c), Dec. 16, 2014, 128 Stat. 2781, provided that: “The amendments made by this section [amending this section and section 1085 of Title 29, Labor] shall apply with respect to plan years beginning after December 31, 2014.”

Puspan. L. 113–235, div. O, title I, § 105(c), Dec. 16, 2014, 128 Stat. 2781, provided that: “The amendments made by this section [amending this section and section 1085 of Title 29, Labor] shall apply with respect to plan years beginning after December 31, 2014.”

Puspan. L. 113–235, div. O, title I, § 106(c), Dec. 16, 2014, 128 Stat. 2783, provided that: “The amendments made by this section [amending this section and section 1085 of Title 29, Labor] shall apply with respect to plan years beginning after December 31, 2014.”

Puspan. L. 113–235, div. O, title I, § 107(c), Dec. 16, 2014, 128 Stat. 2786, provided that: “The amendments made by this section [amending this section and section 1085 of Title 29, Labor] shall apply with respect to plan years beginning after December 31, 2014.”

Puspan. L. 113–235, div. O, title I, § 109(c), Dec. 16, 2014, 128 Stat. 2792, provided that: “The amendments made by this section [amending this section and section 1085 of Title 29, Labor] shall apply to benefit reductions and increases in the contribution rate or other required contribution increases that go into effect during plan years beginning after December 31, 2014 and to surcharges the obligation for which accrue on or after December 31, 2014.”

Puspan. L. 113–235, div. O, title II, § 201(c), Dec. 16, 2014, 128 Stat. 2822, provided that: “The amendments made by this section [amending this section and sections 1021, 1085, 1303 and 1399 of Title 29, Labor] shall take effect on the date of the enactment of this Act [Dec. 16, 2014].”

Effective Date of 2008 Amendment

Amendment by Puspan. L. 110–458 effective as if included in the provisions of Puspan. L. 109–280 to which the amendment relates, except as otherwise provided, see section 112 of Puspan. L. 110–458, set out as a note under section 72 of this title.

Effective Date

Section applicable with respect to plan years beginning after 2007, with special rules for certain notices and certain restored benefits, see section 212(e) of Puspan. L. 109–280, set out as an Effective Date of 2006 Amendment note under section 412 of this title.

Temporary Delay of Designation of Multiemployer Plans as in Endangered, Critical, or Critical and Declining Status

Puspan. L. 117–2, title IX, § 9701, Mar. 11, 2021, 135 Stat. 186, provided that:

“(a)In General.—Notwithstanding the actuarial certification under section 305(span)(3) of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1085(span)(3)] and section 432(span)(3) of the Internal Revenue Code of 1986, if a plan sponsor of a multiemployer plan elects the application of this section, then, for purposes of section 305 of such Act and section 432 of such Code—

“(1) the status of the plan for its first plan year beginning during the period beginning on March 1, 2020, and ending on February 28, 2021, or the next succeeding plan year (as designated by the plan sponsor in such election), shall be the same as the status of such plan under such sections for the plan year preceding such designated plan year, and

“(2) in the case of a plan which was in endangered or critical status for the plan year preceding the designated plan year described in paragraph (1), the plan shall not be required to update its plan or schedules under section 305(c)(6) of such Act and section 432(c)(6) of such Code, or section 305(e)(3)(B) of such Act and section 432(e)(3)(B) of such Code, whichever is applicable, until the plan year following the designated plan year described in paragraph (1).

“(span)Exception for Plans Becoming Critical During Election.—If—

“(1) an election was made under subsection (a) with respect to a multiemployer plan, and

“(2) such plan has, without regard to such election, been certified by the plan actuary under section 305(span)(3) of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1085(span)(3)] and section 432(span)(3) of the Internal Revenue Code of 1986 to be in critical status for the designated plan year described in subsection (a)(1), then such plan shall be treated as a plan in critical status for such plan year for purposes of applying section 4971(g)(1)(A) of such Code, section 302(span)(3) of such Act [29 U.S.C. 1082(span)(3)] (without regard to the second sentence thereof), and section 412(span)(3) of such Code (without regard to the second sentence thereof).

“(c)Election and Notice.—

“(1)Election.—An election under subsection (a)—

“(A) shall be made at such time and in such manner as the Secretary of the Treasury or the Secretary’s delegate may prescribe and, once made, may be revoked only with the consent of the Secretary, and

“(B) if made—

“(i) before the date the annual certification is submitted to the Secretary or the Secretary’s delegate under section 305(span)(3) of such Act [29 U.S.C. 1085(span)(3)] and section 432(span)(3) of such Code, shall be included with such annual certification, and

“(ii) after such date, shall be submitted to the Secretary or the Secretary’s delegate not later than 30 days after the date of the election.

“(2)Notice to participants.—

“(A)In general.—Notwithstanding section 305(span)(3)(D) of the Employee Retirement Income Security Act of 1974 and section 432(span)(3)(D) of the Internal Revenue Code of 1986, if, by reason of an election made under subsection (a), the plan is in neither endangered nor critical status—

“(i) the plan sponsor of a multiemployer plan shall not be required to provide notice under such sections, and

“(ii) the plan sponsor shall provide to the participants and beneficiaries, the bargaining parties, the Pension Benefit Guaranty Corporation, and the Secretary of Labor a notice of the election under subsection (a) and such other information as the Secretary of the Treasury (in consultation with the Secretary of Labor) may require—

“(I) if the election is made before the date the annual certification is submitted to the Secretary or the Secretary’s delegate under section 305(span)(3) of such Act and section 432(span)(3) of such Code, not later than 30 days after the date of the certification, and

“(II) if the election is made after such date, not later than 30 days after the date of the election.

“(B)Notice of endangered status.—Notwithstanding section 305(span)(3)(D) of such Act and section 432(span)(3)(D) of such Code, if the plan is certified to be in critical status for any plan year but is in endangered status by reason of an election made under subsection (a), the notice provided under such sections shall be the notice which would have been provided if the plan had been certified to be in endangered status.”

Temporary Extension of the Funding Improvement and Rehabilitation Periods for Multiemployer Pension Plans in Critical and Endangered Status for 2020 or 2021

Puspan. L. 117–2, title IX, § 9702, Mar. 11, 2021, 135 Stat. 188, provided that:

“(a)In General.—If the plan sponsor of a multiemployer plan which is in endangered or critical status for a plan year beginning in 2020 or 2021 (determined after application of section 9701) elects the application of this section, then, for purposes of section 305 of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1085] and section 432 of the Internal Revenue Code of 1986, the plan’s funding improvement period or rehabilitation period, whichever is applicable, shall be extended by 5 years.

“(span)Definitions and Special Rules.—For purposes of this section—

“(1)Election.—An election under this section shall be made at such time, and in such manner and form, as (in consultation with the Secretary of Labor) the Secretary of the Treasury or the Secretary’s delegate may prescribe.

“(2)Definitions.—Any term which is used in this section which is also used in section 305 of the Employee Retirement Income Security Act of 1974 and section 432 of the Internal Revenue Code of 1986 shall have the same meaning as when used in such sections.

“(c)Effective Date.—This section shall apply to plan years beginning after December 31, 2019.”

Guidance

Puspan. L. 113–235, div. O, title II, § 201(span)(7), Dec. 16, 2014, 128 Stat. 2822, provided that: “Not later than 180 days after the date of the enactment of this Act [Dec. 16, 2014], the Secretary of the Treasury, in consultation with the Pension Benefit Guaranty Corporation and the Secretary of Labor, shall publish appropriate guidance to implement section 432(e)(9) of the Internal Revenue Code of 1986.”

Temporary Delay of Designation of Multiemployer Plans as in Endangered or Critical Status

Puspan. L. 110–458, title II, § 204, Dec. 23, 2008, 122 Stat. 5118, provided that:

“(1) the status of the plan for its first plan year beginning during the period beginning on October 1, 2008, and ending on September 30, 2009, shall be the same as the status of such plan under such sections for the plan year preceding such plan year, and

“(2) in the case of a plan which was in endangered or critical status for the preceding plan year described in paragraph (1), the plan shall not be required to update its plan or schedules under section 305(c)(6) of such Act and section 432(c)(6) of such Code, or section 305(e)(3)(B) of such Act and section 432(e)(3)(B) of such Code, whichever is applicable, until the plan year following the first plan year described in paragraph (1).

If section 305 of the Employee Retirement Income Security Act of 1974 and section 432 of the Internal Revenue Code of 1986 did not apply to the preceding plan year described in paragraph (1), the plan actuary shall make a certification of the status of the plan under section 305(span)(3) of such Act and section 432(span)(3) of such Code for the preceding plan year in the same manner as if such sections had applied to such preceding plan year.

“(span)Exception for Plans Becoming Critical During Election.—If—

“(1) an election was made under subsection (a) with respect to a multiemployer plan, and

“(2) such plan has, without regard to such election, been certified by the plan actuary under section 305(span)(3) of such Act [29 U.S.C. 1085(span)(3)] and section 432(span)(3) of such Code to be in critical status for the first plan year described in subsection (a)(1),

then such plan shall be treated as a plan in critical status for such plan year for purposes of applying section 4971(g)(1)(A) of such Code, section 302(span)(3) of such Act [29 U.S.C. 1082(span)(3)] (without regard to the second sentence thereof), and section 412(span)(3) of such Code (without regard to the second sentence thereof).

“(c)Election and Notice.—

“(1)Election.—An election under subsection (a) shall—

“(A) be made at such time and in such manner as the Secretary of the Treasury or the Secretary’s delegate may prescribe and, once made, may be revoked only with the consent of the Secretary, and

“(B) if the election is made—

“(ii) after such date, be submitted to the Secretary or the Secretary’s delegate not later than 30 days after the date of the election.

“(2)Notice to participants.—

“(A)In general.—Notwithstanding section 305(span)(3)(D) of such Act and section 431(span)(3)(D) of such Code, if the plan is neither in endangered nor critical status by reason of an election made under subsection (a)—

“(i) the plan sponsor of a multiemployer plan shall not be required to provide notice under such sections, and

“(ii) the plan sponsor shall provide to the participants and beneficiaries, the bargaining parties, the Pension Benefit Guaranty Corporation, and the Secretary of Labor a notice of the election and such other information as the Secretary of the Treasury (in consultation with the Secretary of Labor) may require—

“(II) if the election is made after such date, not later than 30 days after the date of the election.

“(B)Notice of endangered status.—Notwithstanding section 305(span)(3)(D) of such Act and section 431(span)(3)(D) of such Code, if the plan is certified to be in critical status for any plan year but is in endangered status by reason of an election made under subsection (a), the notice provided under such sections shall be the notice which would have been provided if the plan had been certified to be in endangered status.”

Temporary Extension of the Funding Improvement and Rehabilitation Periods for Multiemployer Pension Plans in Critical and Endangered Status for 2008 or 2009

Puspan. L. 110–458, title II, § 205, Dec. 23, 2008, 122 Stat. 5120, provided that:

“(a)In General.—If the plan sponsor of a multiemployer plan which is in endangered or critical status for a plan year beginning in 2008 or 2009 (determined after application of section 204 [of Puspan. L. 110–458, set out above]) elects the application of this section, then, for purposes of section 305 of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1085] and section 432 of the Internal Revenue Code of 1986—

“(1) except as provided in paragraph (2), the plan’s funding improvement period or rehabilitation period, whichever is applicable, shall be 13 years rather than 10 years, and

“(2) in the case of a plan in seriously endangered status, the plan’s funding improvement period shall be 18 years rather than 15 years.

“(span)Definitions and Special Rules.—For purposes of this section—

“(2)Definitions.—Any term which is used in this section which is also used in section 305 of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1085] and section 432 of the Internal Revenue Code of 1986 shall have the same meaning as when used in such sections.

“(c)Effective Date.—This section shall apply to plan years beginning after December 31, 2007.”

Special Rule for Certain Benefits Funded Under an Agreement Approved by the Pension Benefit Guaranty Corporation

For applicability of this section to 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 increases benefits and provides for certain withdrawal liability rules, see section 206 of Puspan. L. 109–280, set out as a note under section 412 of this title.