View all text of Subtitle A [§ 1301 - § 1311]
§ 1306. Premium rates
(a) Schedules for premium rates and bases for application; establishment, coverage, etc.
(1) The corporation shall prescribe such schedules of premium rates and bases for the application of those rates as may be necessary to provide sufficient revenue to the fund for the corporation to carry out its functions under this subchapter. The premium rates charged by the corporation for any period shall be uniform for all plans, other than multiemployer plans, insured by the corporation with respect to basic benefits guaranteed by it under section 1322 of this title, and shall be uniform for all multiemployer plans with respect to basic benefits guaranteed by it under section 1322a of this title.
(2) The corporation shall maintain separate schedules of premium rates, and bases for the application of those rates, for—
(A) basic benefits guaranteed by it under section 1322 of this title for single-employer plans,
(B) basic benefits guaranteed by it under section 1322a of this title for multiemployer plans,
(C) nonbasic benefits guaranteed by it under section 1322 of this title for single-employer plans,
(D) nonbasic benefits guaranteed by it under section 1322a of this title for multiemployer plans, and
(E) reimbursements of uncollectible withdrawal liability under section 1402 of this title.
The corporation may revise such schedules whenever it determines that revised schedules are necessary. Except as provided in section 1322a(f) of this title, in order to place a revised schedule described in subparagraph (A) or (B) in effect, the corporation shall proceed in accordance with subsection (b)(1), and such schedule shall apply only to plan years beginning more than 30 days after the date on which a joint resolution approving such revised schedule is enacted.
(3)
(A) Except as provided in subparagraph (C), the annual premium rate payable to the corporation by all plans for basic benefits guaranteed under this subchapter is—
(i) in the case of a single-employer plan other than a CSEC plan (as defined in section 1060(f)(1) of this title) an amount for each individual who is a participant in such plan during the plan year equal to the sum of the additional premium (if any) determined under subparagraph (E) and—(I) for plan years beginning after December 31, 2005, and before January 1, 2013, $30;(II) for plan years beginning after December 31, 2012, and before January 1, 2014, $42;(III) for plan years beginning after December 31, 2013 and before January 1, 2015,,1
1 So in original.
$49.22 So in original. The period probably should be a semicolon.
(IV) for plan years beginning after December 31, 2014, and before January 1, 2016, $57;(V) for plan years beginning after December 31, 2015, and before January 1, 2017, $64;(VI) for plan years beginning after December 31, 2016, and before January 1, 2018, $69;(VII) for plan years beginning after December 31, 2017, and before January 1, 2019, $74; and(VIII) for plan years beginning after December 31, 2018, $80.33 So in original. The period probably should be a comma.
(ii) in the case of a multiemployer plan, for the plan year within which the date of enactment of the Multiemployer Pension Plan Amendments Act of 1980 falls, an amount for each individual who is a participant in such plan for such plan year equal to the sum of—(I) 50 cents, multiplied by a fraction the numerator of which is the number of months in such year ending on or before such date and the denominator of which is 12, and(II) $1.00, multiplied by a fraction equal to 1 minus the fraction determined under clause (i),
(iii) in the case of a multiemployer plan, for plan years beginning after September 26, 1980, and before January 1, 2006, an amount equal to—(I) $1.40 for each participant, for the first, second, third, and fourth plan years,(II) $1.80 for each participant, for the fifth and sixth plan years,(III) $2.20 for each participant, for the seventh and eighth plan years, and(IV) $2.60 for each participant, for the ninth plan year, and for each succeeding plan year,
(iv) in the case of a multiemployer plan, for plan years beginning after December 31, 2005, and before January 1, 2013, $8.00 for each individual who is a participant in such plan during the applicable plan year,
(v) in the case of a multiemployer plan, for plan years beginning after December 31, 2012, and before January 1, 2015, $12.00 for each individual who is a participant in such plan during the applicable plan year,
(vi) in the case of a multiemployer plan, for plan years beginning after December 31, 2014, and before January 1, 2031, $26 for each individual who is a participant in such plan during the applicable plan year,
(vii) in the case of a CSEC plan (as defined in section 1060(f)(1) of this title), for plan years beginning after December 31, 2018, for each individual who is a participant in such plan during the plan year an amount equal to the sum of—(I) the additional premium (if any) determined under subparagraph (E), and(II) $19, or
(viii) in the case of a multiemployer plan, for plan years beginning after December 31, 2030, $52 for each individual who is a participant in such plan during the applicable plan year.
(B) The corporation may prescribe by regulation the extent to which the rate described in subparagraph (A)(i) applies more than once for any plan year to an individual participating in more than one plan maintained by the same employer, and the corporation may prescribe regulations under which the rate described in clause (iii) or (iv) of subparagraph (A) will not apply to the same participant in any multiemployer plan more than once for any plan year.
(C)
(i) If the sum of—(I) the amounts in any fund for basic benefits guaranteed for multiemployer plans, and(II) the value of any assets held by the corporation for payment of basic benefits guaranteed for multiemployer plans,
is for any calendar year less than 2 times the amount of basic benefits guaranteed by the corporation under this subchapter for multiemployer plans which were paid out of any such fund or assets during the preceding calendar year, the annual premium rates under subparagraph (A) shall be increased to the next highest premium level necessary to insure that such sum will be at least 2 times greater than such amount during the following calendar year.
(ii) If the board of directors of the corporation determines that an increase in the premium rates under subparagraph (A) is necessary to provide assistance to plans which are receiving assistance under section 1431 of this title and to plans the board finds are reasonably likely to require such assistance, the board may order such increase in the premium rates.
(iii) The maximum annual premium rate which may be established under this subparagraph is $2.60 for each participant.
(iv) The provisions of this subparagraph shall not apply if the annual premium rate is increased to a level in excess of $2.60 per participant under any other provisions of this subchapter.
(D)
(i) Not later than 120 days before the date on which an increase under subparagraph (C)(ii) is to become effective, the corporation shall publish in the Federal Register a notice of the determination described in subparagraph (C)(ii), the basis for the determination, the amount of the increase in the premium, and the anticipated increase in premium income that would result from the increase in the premium rate. The notice shall invite public comment, and shall provide for a public hearing if one is requested. Any such hearing shall be commenced not later than 60 days before the date on which the increase is to become effective.
(ii) The board of directors shall review the hearing record established under clause (i) and shall, not later than 30 days before the date on which the increase is to become effective, determine (after consideration of the comments received) whether the amount of the increase should be changed and shall publish its determination in the Federal Register.
(E)
(i) Except as provided in subparagraph (I), the additional premium determined under this subparagraph with respect to any plan for any plan year—(I) shall be an amount equal to the amount determined under clause (ii) divided by the number of participants in such plan as of the close of the preceding plan year;(II) in the case of plan years beginning in a calendar year after 2012 and before 2016, shall not exceed $400 4
4 So in original. Probably should be followed by a semicolon.
and(III) in the case of plan years beginning in a calendar year after 2015, shall not exceed $500.(ii) The amount determined under this clause for any plan year shall be an amount equal to the applicable dollar amount under paragraph (8) for each $1,000 (or fraction thereof) of unfunded vested benefits under the plan as of the close of the preceding plan year.
(iii) Except as provided in clause (v), for purposes of clause (ii), the term “unfunded vested benefits” means, for a plan year, the excess (if any) of—(I) the funding target of the plan as determined under section 1083(d) of this title for the plan year by only taking into account vested benefits and by using the interest rate described in clause (iv), over(II) the fair market value of plan assets for the plan year which are held by the plan on the valuation date.
(iv) The interest rate used in valuing benefits for purposes of subclause (I) of clause (iii) shall be equal to the first, second, or third segment rate for the month preceding the month in which the plan year begins, which would be determined under section 1083(h)(2)(C) of this title (notwithstanding any regulations issued by the corporation, determined by not taking into account any adjustment under clause (iv) thereof) if section 1083(h)(2)(D) of this title were applied by using the monthly yields for the month preceding the month in which the plan year begins on investment grade corporate bonds with varying maturities and in the top 3 quality levels rather than the average of such yields for a 24-month period.
(v) For purposes of clause (ii), in the case of a CSEC plan (as defined in section 1060(f)(1) of this title), the term “unfunded vested benefits” means, for plan years beginning after December 31, 2018, the excess (if any) of—(I) the funding liability of the plan as determined under section 1085a(j)(5)(C) of this title for the plan year by only taking into account vested benefits, over(II) the fair market value of plan assets for the plan year which are held by the plan on the valuation date.
(F) For each plan year beginning in a calendar year after 2006 and before 2013, there shall be substituted for the premium rate specified in clause (i) of subparagraph (A) an amount equal to the greater of—
(i) the product derived by multiplying the premium rate specified in clause (i) of subparagraph (A) by the ratio of—(I) the national average wage index (as defined in section 409(k)(1) of title 42) for the first of the 2 calendar years preceding the calendar year in which such plan year begins, to(II) the national average wage index (as so defined) for 2004 (2012 in the case of plan years beginning after calendar year 2014); and
(ii) the premium rate in effect under clause (i) of subparagraph (A) for plan years beginning in the preceding calendar year.
If the amount determined under this subparagraph is not a multiple of $1, such product shall be rounded to the nearest multiple of $1.
(G) For each plan year beginning in a calendar year after 2019, there shall be substituted for the premium rate specified in clause (i) of subparagraph (A) an amount equal to the greater of—
(i) the product derived by multiplying the premium rate specified in clause (i) of subparagraph (A) by the ratio of—(I) the national average wage index (as defined in section 409(k)(1) of title 42) for the first of the 2 calendar years preceding the calendar year in which such plan year begins, to(II) the national average wage index (as so defined) for 2017; and
(ii) the premium rate in effect under clause (i) of subparagraph (A) for plan years beginning in the preceding calendar year.
If the amount determined under this subparagraph is not a multiple of $1, such product shall be rounded to the nearest multiple of $1.
(H) For each plan year beginning in a calendar year after 2006, there shall be substituted for the premium rate specified in clause (iv) of subparagraph (A) an amount equal to the greater of—
(i) the product derived by multiplying the premium rate specified in clause (iv) of subparagraph (A) by the ratio of—(I) the national average wage index (as defined in section 409(k)(1) of title 42) for the first of the 2 calendar years preceding the calendar year in which such plan year begins, to(II) the national average wage index (as so defined) for 2004; and
(ii) the premium rate in effect under clause (iv) of subparagraph (A) for plan years beginning in the preceding calendar year.
If the amount determined under this subparagraph is not a multiple of $1, such product shall be rounded to the nearest multiple of $1.
(I)
(i) In the case of an employer who has 25 or fewer employees on the first day of the plan year, the additional premium determined under subparagraph (E) for each participant shall not exceed $5 multiplied by the number of participants in the plan as of the close of the preceding plan year.
(ii) For purposes of clause (i), whether an employer has 25 or fewer employees on the first day of the plan year is determined by taking into consideration all of the employees of all members of the contributing sponsor’s controlled group. In the case of a plan maintained by two or more contributing sponsors, the employees of all contributing sponsors and their controlled groups shall be aggregated for purposes of determining whether the 25-or-fewer-employees limitation has been satisfied.
(J) For each plan year beginning in a calendar year after 2013, there shall be substituted for the premium rate specified in clause (v) of subparagraph (A) an amount equal to the greater of—
(i) the product derived by multiplying the premium rate specified in clause (v) of subparagraph (A) by the ratio of—(I) the national average wage index (as defined in section 409(k)(1) of title 42) for the first of the 2 calendar years preceding the calendar year in which such plan year begins, to(II) the national average wage index (as so defined) for 2011; and
(ii) the premium rate in effect under clause (v) of subparagraph (A) for plan years beginning in the preceding calendar year.
If the amount determined under this subparagraph is not a multiple of $1, such product shall be rounded to the nearest multiple of $1.
(K) For each plan year beginning in a calendar year after 2013 and before 2016, there shall be substituted for the dollar amount specified in subclause (II) of subparagraph (E)(i) an amount equal to the greater of—
(i) the product derived by multiplying such dollar amount by the ratio of—(I) the national average wage index (as defined in section 409(k)(1) of title 42) for the first of the 2 calendar years preceding the calendar year in which such plan year begins, to(II) the national average wage index (as so defined) for 2011; and
(ii) such dollar amount for plan years beginning in the preceding calendar year.
If the amount determined under this subparagraph is not a multiple of $1, such product shall be rounded to the nearest multiple of $1.
(L) For each plan year beginning in a calendar year after 2016, there shall be substituted for the dollar amount specified in subclause (III) of subparagraph (E)(i) an amount equal to the greater of—
(i) the product derived by multiplying such dollar amount by the ratio of—(I) the national average wage index (as defined in section 409(k)(1) of title 42) for the first of the 2 calendar years preceding the calendar year in which such plan year begins, to(II) the national average wage index (as so defined) for 2014; and
(ii) such dollar amount for plan years beginning in the preceding calendar year.
If the amount determined under this subparagraph is not a multiple of $1, such product shall be rounded to the nearest multiple of $1.
(M) For each plan year beginning in a calendar year after 2015, there shall be substituted for the dollar amount specified in clause (vi) of subparagraph (A) an amount equal to the greater of—
(i) the product derived by multiplying such dollar amount by the ratio of—(I) the national average wage index (as defined in section 409(k)(1) of title 42) for the first of the 2 calendar years preceding the calendar year in which such plan year begins, to(II) the national average wage index (as so defined) for 2013; and
(ii) such dollar amount for plan years beginning in the preceding calendar year.
If the amount determined under this subparagraph is not a multiple of $1, such product shall be rounded to the nearest multiple of $1.
(N) For each plan year beginning in a calendar year after 2031, there shall be substituted for the dollar amount specified in clause (viii) of subparagraph (A) an amount equal to the greater of—
(i) the product derived by multiplying such dollar amount by the ratio of—(I) the national average wage index (as defined in section 409(k)(1) of title 42) for the first of the 2 calendar years preceding the calendar year in which such plan year begins, to(II) the national average wage index (as so defined) for 2029; and
(ii) such dollar amount for plan years beginning in the preceding calendar year.
If the amount determined under this subparagraph is not a multiple of $1, such product shall be rounded to the nearest multiple of $1.
(4) The corporation may prescribe, subject to the enactment of a joint resolution in accordance with this section or section 1322a(f) of this title, alternative schedules of premium rates, and bases for the application of those rates, for basic benefits guaranteed by it under sections 1322 and 1322a of this title based, in whole or in part, on the risks insured by the corporation in each plan.
(5)
(A) In carrying out its authority under paragraph (1) to establish schedules of premium rates, and bases for the application of those rates, for nonbasic benefits guaranteed under sections 1322 and 1322a of this title the premium rates charged by the corporation for any period for nonbasic benefits guaranteed shall—
(i) be uniform by category of nonbasic benefits guaranteed,
(ii) be based on the risks insured in each category, and
(iii) reflect the experience of the corporation (including experience which may be reasonably anticipated) in guaranteeing such benefits.
(B) Notwithstanding subparagraph (A), premium rates charged to any multiemployer plan by the corporation for any period for supplemental guarantees under section 1322a(g)(2) of this title may reflect any reasonable considerations which the corporation determines to be appropriate.
(6)
(A) In carrying out its authority under paragraph (1) to establish premium rates and bases for basic benefits guaranteed under section 1322 of this title with respect to single-employer plans, the corporation shall establish such rates and bases in coverage schedules in accordance with the provisions of this paragraph.
(B) The corporation may establish annual premiums for single-employer plans composed of the sum of—
(i) a charge based on a rate applicable to the excess, if any, of the present value of the basic benefits of the plan which are guaranteed over the value of the assets of the plan, not in excess of 0.1 percent, and
(ii) an additional charge based on a rate applicable to the present value of the basic benefits of the plan which are guaranteed.
The rate for the additional charge referred to in clause (ii) shall be set by the corporation for every year at a level which the corporation estimates will yield total revenue approximately equal to the total revenue to be derived by the corporation from the charges referred to in clause (i) of this subparagraph.
(C) The corporation may establish annual premiums for single-employer plans based on—
(i) the number of participants in a plan, but such premium rates shall not exceed the rates described in paragraph (3),
(ii) unfunded basic benefits guaranteed under this subchapter, but such premium rates shall not exceed the limitations applicable to charges referred to in subparagraph (B)(i), or
(iii) total guaranteed basic benefits, but such premium rates shall not exceed the rates for additional charges referred to in subparagraph (B)(ii).
If the corporation uses two or more of the rate bases described in this subparagraph, the premium rates shall be designed to produce approximately equal amounts of aggregate premium revenue from each of the rate bases used.
(D) For purposes of this paragraph, the corporation shall by regulation define the terms “value of assets” and “present value of the benefits 5
5 So in original. Probably should be preceded by “basic”.
of the plan which are guaranteed” in a manner consistent with the purposes of this subchapter and the provisions of this section.(7)Premium Rate for Certain Terminated Single-Employer Plans.—
(A)In general.—If there is a termination of a single-employer plan under clause (ii) or (iii) of section 1341(c)(2)(B) of this title or section 1342 of this title, there shall be payable to the corporation, with respect to each applicable 12-month period, a premium at a rate equal to $1,250 multiplied by the number of individuals who were participants in the plan immediately before the termination date. Such premium shall be in addition to any other premium under this section.
(B)Special rule for plans terminated in bankruptcy reorganization.—In the case of a single-employer plan terminated under section 1341(c)(2)(B)(ii) of this title or under section 1342 of this title during pendency of any bankruptcy reorganization proceeding under chapter 11 of title 11 or under any similar law of a State or a political subdivision of a State (or a case described in section 1341(c)(2)(B)(i) of this title filed by or against such person has been converted, as of such date, to such a case in which reorganization is sought), subparagraph (A) shall not apply to such plan until the date of the discharge or dismissal of such person in such case.
(C)Applicable 12-month period.—For purposes of subparagraph (A)—
(i)In general.—The term “applicable 12-month period” means—(I) the 12-month period beginning with the first month following the month in which the termination date occurs, and(II) each of the first two 12-month periods immediately following the period described in subclause (I).
(ii)Plans terminated in bankruptcy reorganization.—In any case in which the requirements of subparagraph (B) are met in connection with the termination of the plan with respect to 1 or more persons described in such subparagraph, the 12-month period described in clause (i)(I) shall be the 12-month period beginning with the first month following the month which includes the earliest date as of which each such person is discharged or dismissed in the case described in such clause in connection with such person.
(D)Coordination with section 1307.—
(i) Notwithstanding section 1307 of this title—(I) premiums under this paragraph shall be due within 30 days after the beginning of any applicable 12-month period, and(II) the designated payor shall be the person who is the contributing sponsor as of immediately before the termination date.
(ii) The fifth sentence of section 1307(a) of this title shall not apply in connection with premiums determined under this paragraph.
(8)Applicable dollar amount for variable rate premium.—For purposes of paragraph (3)(E)(ii)—
(A)In general.—Except as provided in subparagraphs (B), (C), and (E), the applicable dollar amount shall be—
(i) $9 for plan years beginning in a calendar year before 2015;
(ii) for plan years beginning in calendar year 2015, the amount in effect for plan years beginning in 2014 (determined after application of subparagraph (C));
(iii) for plan years beginning after calendar year 2015, the amount in effect for plan years beginning in 2015 (determined after application of subparagraph (C));
(iv) for plan years beginning after calendar year 2016, the amount in effect for plan years beginning in 2016 (determined after application of subparagraph (C));
(v) for plan years beginning after calendar year 2017, the amount in effect for plan years beginning in 2017 (determined after application of subparagraph (C));
(vi) for plan years beginning after calendar year 2018, the amount in effect for plan years beginning in 2018 (determined after application of subparagraph (C));
(vii) for plan years beginning after calendar year 2019, the amount in effect for plan years beginning in 2019 (determined after application of subparagraph (C)); and
(viii) for plan years beginning after calendar year 2023, $52.
(B)Adjustment for inflation.—For each plan year beginning in a calendar year after 2012 and before 2024, there shall be substituted for the applicable dollar amount specified under subparagraph (A) an amount equal to the greater of—
(i) the product derived by multiplying such applicable dollar amount for plan years beginning in that calendar year by the ratio of—(I) the national average wage index (as defined in section 409(k)(1) of title 42) for the first of the 2 calendar years preceding the calendar year in which such plan year begins, to(II) the national average wage index (as so defined) for the base year; and
(ii) such applicable dollar amount in effect for plan years beginning in the preceding calendar year.
If the amount determined under this subparagraph is not a multiple of $1, such product shall be rounded to the nearest multiple of $1.
(C)Additional increases.—The applicable dollar amount determined under subparagraph (A) (after the application of subparagraph (B)) shall be increased—
(i) in the case of plan years beginning in calendar year 2014, by $4;
(ii) in the case of plan years beginning in calendar year 2015, by $10;
(iii) in the case of plan years beginning in calendar year 2016, by $5;
(iv) in the case of plan years beginning in calendar year 2017, by $3;
(v) in the case of plan years beginning in calendar year 2018, by $4; and
(vi) in the case of plan years beginning in calendar year 2019, by $4.
(D)Base year.—For purposes of subparagraph (B), the base year is—
(i) 2010, in the case of plan years beginning in calendar year 2013 or 2014;
(ii) 2012, in the case of plan years beginning in calendar year 2015;
(iii) 2013, in the case of plan years beginning after calendar year 2015;
(iv) 2014, in the case of plan years beginning after calendar year 2016;
(v) 2015, in the case of plan years beginning after calendar year 2017;
(vi) 2016, in the case of plan years beginning after calendar year 2018; and
(vii) 2017, in the case of plan years beginning after calendar year 2019 and before 2024.
(E)CSEC plans.—In the case of a CSEC plan (as defined in section 1060(f)(1) of this title), the applicable dollar amount shall be $9.
(b) Revised schedule; Congressional procedures applicable
(1) In order to place a revised schedule (other than a schedule described in subsection (a)(2)(C), (D), or (E)) in effect, the corporation shall transmit the proposed schedule, its proposed effective date, and the reasons for its proposal to the Committee on Ways and Means and the Committee on Education and Labor of the House of Representatives, and to the Committee on Finance and the Committee on Labor and Human Resources of the Senate.
(2) The succeeding paragraphs of this subsection are enacted by Congress as an exercise of the rulemaking power of the Senate and the House of Representatives, respectively, and as such they shall be deemed a part of the rules of each House, respectively, but applicable only with respect to the procedure to be followed in that House in the case of resolutions described in paragraph (3). They shall supersede other rules only to the extent that they are inconsistent therewith. They are enacted with full recognition of the constitutional right of either House to change the rules (so far as relating to the procedure of that House) at any time, in the same manner and to the same extent as in the case of any rule of that House.
(3) For the purpose of the succeeding paragraphs of this subsection, “resolution” means only a joint resolution, the matter after the resolving clause of which is as follows: “The proposed revised schedule transmitted to Congress by the Pension Benefit Guaranty Corporation on __ is hereby approved.”, the blank space therein being filled with the date on which the corporation’s message proposing the rate was delivered.
(4) A resolution shall be referred to the Committee on Ways and Means and the Committee on Education and Labor of the House of Representatives and to the Committee on Finance and the Committee on Labor and Human Resources of the Senate.
(5) If a committee to which has been referred a resolution has not reported it before the expiration of 10 calendar days after its introduction, it shall then (but not before) be in order to move to discharge the committee from further consideration of that resolution, or to discharge the committee from further consideration of any other resolution with respect to the proposed adjustment which has been referred to the committee. The motion to discharge may be made only by a person favoring the resolution, shall be highly privileged (except that it may not be made after the committee has reported a resolution with respect to the same proposed rate), and debate thereon shall be limited to not more than 1 hour, to be divided equally between those favoring and those opposing the resolution. An amendment to the motion is not in order, and it is not in order to move to reconsider the vote by which the motion is agreed to or disagreed to. If the motion to discharge is agreed to or disagreed to, the motion may not be renewed, nor may another motion to discharge the committee be made with respect to any other resolution with respect to the same proposed rate.
(6) When a committee has reported, or has been discharged from further consideration of a resolution, it is at any time thereafter in order (even though a previous motion to the same effect has been disagreed to) to move to proceed to the consideration of the resolution. The motion is highly privileged and is not debatable. An amendment to the motion is not in order, and it is not in order to move to reconsider the vote by which the motion is agreed to or disagreed to. Debate on the resolution shall be limited to not more than 10 hours, which shall be divided equally between those favoring and those opposing the resolution. A motion further to limit debate is not debatable. An amendment to, or motion to recommit, the resolution is not in order, and it is not in order to move to reconsider the vote by which the resolution is agreed to or disagreed to.
(7) Motions to postpone, made with respect to the discharge from committee, or the consideration of, a resolution and motions to proceed to the consideration of other business shall be decided without debate. Appeals from the decisions of the Chair relating to the application of the rules of the Senate or the House of Representatives, as the case may be, to the procedure relating to a resolution shall be decided without debate.
(c) Rates for plans for basic benefits
(1) Except as provided in subsection (a)(3), and subject to paragraph (2), the rate for all plans for basic benefits guaranteed under this subchapter with respect to plan years ending after September 2, 1974, is—
(A) in the case of each plan which was not a multiemployer plan in a plan year—
(i) with respect to each plan year beginning before January 1, 1978, an amount equal to $1 for each individual who was a participant in such plan during the plan year,
(ii) with respect to each plan year beginning after December 31, 1977, and before January 1, 1986, an amount equal to $2.60 for each individual who was a participant in such plan during the plan year, and 6
6 So in original. The word “and” probably should not appear.
(iii) with respect to each plan year beginning after December 31, 1985, and before January 1, 1988, an amount equal to $8.50 for each individual who was a participant in such plan during the plan year, and
(iv) with respect to each plan year beginning after December 31, 1987, and before January 1, 1991, an amount equal to $16 for each individual who was a participant in such plan during the plan year, and
(B) in the case of each plan which was a multiemployer plan in a plan year, an amount equal to 50 cents for each individual who was a participant in such plan during the plan year.
(2) The rate applicable under this subsection for the plan year preceding September 1, 1975, is the product of—
(A) the rate described in the preceding sentence; and
(B) a fraction—
(i) the numerator of which is the number of calendar months in the plan year which ends after September 2, 1974, and before the date on which the new plan year commences, and
(ii) the denominator of which is 12.
(Pub. L. 93–406, title IV, § 4006, Sept. 2, 1974, 88 Stat. 1010; Pub. L. 96–364, title I, § 105, Sept. 26, 1980, 94 Stat. 1264; Pub. L. 99–272, title XI, § 11005(a)–(c)(3), Apr. 7, 1986, 100 Stat. 240–242; Pub. L. 100–203, title IX, § 9331(a), (b), (e), Dec. 22, 1987, 101 Stat. 1330–367, 1330–368; Pub. L. 101–239, title VII, § 7881(h), Dec. 19, 1989, 103 Stat. 2442; Pub. L. 101–508, title XII, § 12021(a), (b), Nov. 5, 1990, 104 Stat. 1388–573; Pub. L. 103–465, title VII, § 774(a)(1), (b)(1), (2), Dec. 8, 1994, 108 Stat. 5045, 5046; Pub. L. 107–147, title IV, § 405(c), Mar. 9, 2002, 116 Stat. 43;