29 USC 1083 - Minimum funding standards for single-employer defined benefit pension plans

1 So in original. Probably should be followed by “to”.

any succeeding plan year, when added to other installment acceleration amounts (determined without regard to clause (ii)) with respect to the plan year, exceeds the limitation under clause (ii), the portion of such amount representing such excess shall be treated as an installment acceleration amount with respect to the next succeeding plan year.

2 So in original. Probably should be “paragraph (3).”

3 See References in Text note below.

of this title for such month) and each of the rates determined under subparagraph (C) and the averages determined under subparagraph (C)(iv) for such month. The Secretary of the Treasury shall also publish a description of the methodology used to determine such yield curve and such rates which is sufficiently detailed to enable plans to make reasonable projections regarding the yield curve and such rates for future months based on the plan’s projection of future interest rates.

4 So in original. Probably should be “subclause”.

was not a year of 12 months.

5 So in original. Probably should be “paragraph (1)”.

and the amount with respect to such lien.

Editorial Notes

References in Text

Section 106 of the Pension Protection Act of 2006, referred to in subsec. (c)(2)(D)(iv)(I), is section 106 of Puspan. L. 109–280, which is set out as a note under section 401 of Title 26, Internal Revenue Code.

Section 1055(g)(3)(B)(iii)(I) of this title, referred to in subsec. (h)(2)(F), was redesignated section 1055(g)(3)(B)(iii) of this title by Puspan. L. 113–295, div. A, title II, § 221(a)(57)(B)(ii), Dec. 19, 2014, 128 Stat. 4046.

The Social Security Act, referred to in subsec. (h)(3)(D)(ii), is act Aug. 14, 1935, ch. 531, 49 Stat. 620. Title II of the Act is classified generally to subchapter II (§ 401 et seq.) of chapter 7 of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see section 1305 of Title 42 and Tables.

Prior Provisions

A prior section 1083, Puspan. L. 93–406, title I, § 303, Sept. 2, 1974, 88 Stat. 872; Puspan. L. 99–272, title XI, §§ 11015(span)(1)(A), 11016(c)(2), Apr. 7, 1986, 100 Stat. 267, 273; Puspan. L. 100–203, title IX, § 9306(a)(2), (span)(2), (c)(2)(A), (d)(2), Dec. 22, 1987, 101 Stat. 1330–353 to 1330–355; Puspan. L. 101–239, title VII, §§ 7881(span)(6)(B)(ii), (7), (8), (c)(2), 7891(a)(1), Dec. 19, 1989, 103 Stat. 2438, 2439, 2445, related to variance from minimum funding standard, prior to repeal by Puspan. L. 109–280, title I, § 101(a), (d), Aug. 17, 2006, 120 Stat. 784, 789, applicable to plan years beginning after 2007.

Amendments

2021—Subsec. (c)(8). Puspan. L. 117–2, § 9705(span), added par. (8).

Subsec. (h)(2)(C)(iv)(I). Puspan. L. 117–2, § 9706(span)(2), inserted at end “Notwithstanding anything in this subclause, if the average of the first, second, or third segment rate for any 25-year period is less than 5 percent, such average shall be deemed to be 5 percent.”

Subsec. (h)(2)(C)(iv)(II). Puspan. L. 117–58 amended table generally. Prior to amendment, table related to applicable minimum and maximum percentages for each calendar year from 2020 to 2029 and for calendar years after 2029.

Puspan. L. 117–2, § 9706(span)(1), amended table generally. Prior to amendment, table related to applicable minimum and maximum percentages for each calendar year from 2012 to 2023 and for calendar years after 2023.

Subsec. (m). Puspan. L. 117–2, § 9707(span), amended subsec. (m) generally. Prior to amendment, subsec. (m) set out special rules for community newspaper plans under which no participant has had the participant’s accrued benefit increased after December 31, 2017.

2019—Subsec. (m). Puspan. L. 116–94 added subsec. (m).

2015—Subsec. (h)(2)(C)(iv)(II). Puspan. L. 114–74 amended table generally. Prior to amendment, table related to applicable minimum and maximum percentages for each calendar year from 2012 to 2020 and for calendar years after 2020.

2014—Subsec. (c)(5). Puspan. L. 113–295, § 221(a)(57)(C)(ii), struck out subpar. (A) designation and heading and struck out subpar. (B) which related to transition rule and availability of transition relief.

Subsec. (h)(2)(B)(i). Puspan. L. 113–159, § 2003(d)(2), substituted “the valuation date for the plan year” for “the first day of the plan year”.

Subsec. (h)(2)(C)(iv)(II). Puspan. L. 113–159, § 2003(span)(1), amended table generally. Prior to amendment, table related to applicable minimum and maximum percentages for each calendar year from 2012 to 2015 and for calendar years after 2015.

Subsec. (h)(2)(G). Puspan. L. 113–295, § 221(a)(57)(D)(ii), struck out subpar. (G) which related to transition rule for plan years beginning in 2008 or 2009.

2012—Subsec. (h)(2)(C)(iv). Puspan. L. 112–141, § 40211(span)(1), added cl. (iv).

Subsec. (h)(2)(F). Puspan. L. 112–141, § 40211(span)(3)(A), inserted “and the averages determined under subparagraph (C)(iv)” after “subparagraph (C)”.

2010—Subsec. (c)(1). Puspan. L. 111–192, § 201(a)(3)(A), substituted “any shortfall amortization base which has not been fully amortized under this subsection” for “the shortfall amortization bases for such plan year and each of the 6 preceding plan years”.

Subsec. (c)(2)(D). Puspan. L. 111–192, § 201(a)(1), added subpar. (D).

Subsec. (c)(7). Puspan. L. 111–192, § 201(a)(2), added par. (7).

Subsec. (f)(3)(D). Puspan. L. 111–192, § 204(a), added subpar. (D).

Subsec. (j)(3)(F). Puspan. L. 111–192, § 201(a)(3)(B), added subpar. (F).

2008—Subsec. (span). Puspan. L. 110–458, § 101(span)(1)(A), amended subsec. (span) generally. Prior to amendment, text read as follows: “For purposes of this section, 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 present value of all benefits which are expected to accrue or to be earned under the plan during the plan year. For purposes of this subsection, if any benefit attributable to services performed in a preceding plan year is increased by reason of any increase in compensation during the current plan year, the increase in such benefit shall be treated as having accrued during the current plan year.”

Subsec. (c)(5)(B)(i). Puspan. L. 110–458, § 202(a)(2), added cl. (i) and struck out former cl. (i). Prior to amendment, text read as follows: “Except as provided in clauses (iii) and (iv), in the case of plan years beginning after 2007 and before 2011, only the applicable percentage of the funding target shall be taken into account under paragraph (3)(A) in determining the funding shortfall for the plan year for purposes of subparagraph (A).”

Subsec. (c)(5)(B)(iii). Puspan. L. 110–458, § 202(a)(1), redesignated cl. (iv) as (iii) and struck out former cl. (iii). Prior to amendment, text read as follows: “Clause (i) shall not apply with respect to any plan year beginning after 2008 unless the shortfall amortization base for each of the preceding years beginning after 2007 was zero (determined after application of this subparagraph).”

Puspan. L. 110–458, § 101(span)(1)(B), inserted “beginning” before “after 2008”.

Subsec. (c)(5)(B)(iv). Puspan. L. 110–458, § 202(a)(1), redesignated cl. (iv) as (iii).

Subsec. (c)(5)(B)(iv)(II). Puspan. L. 110–458, § 101(span)(1)(C), inserted “for such year” after “beginning in 2007)”.

Subsec. (f)(4)(A). Puspan. L. 110–458, § 101(span)(1)(D), substituted “paragraph (3)” for “paragraph (2)”.

Subsec. (g)(3)(B). Puspan. L. 110–458, § 121(a), amended concluding provisions generally. Prior to amendment, concluding provisions read as follows: “Any such averaging shall be adjusted for contributions and distributions (as provided by the Secretary of the Treasury).”

Subsec. (h)(2)(F). Puspan. L. 110–458, § 101(span)(1)(E), substituted “section 1055(g)(3)(B)(iii)(I) of this title for such month)” for “section 1055(g)(3)(B)(iii)(I) of this title) for such month” and “subparagraph (C)” for “subparagraph (B)”.

Subsec. (i)(2)(A). Puspan. L. 110–458, § 101(span)(1)(F)(i)(I), added subpar. (A) and struck out former subpar. (A) which read as follows: “the present value of all benefits which are expected to accrue or be earned under the plan during the plan year, determined using the additional actuarial assumptions described in paragraph (1)(B), plus”.

Subsec. (i)(2)(B). Puspan. L. 110–458, § 101(span)(1)(F)(i)(II), substituted “the amount determined under subsection (span)(1)(A)(i) with respect to the plan for the plan year” for “the target normal cost (determined without regard to this paragraph) of the plan for the plan year”.

Subsec. (i)(4)(B). Puspan. L. 110–458, § 101(span)(1)(F)(ii), substituted “subparagraph (A)” for “subparagraph (A)(ii)” in concluding provisions.

Subsec. (j)(3)(A). Puspan. L. 110–458, § 101(span)(1)(G)(i), inserted last sentence.

Subsec. (j)(3)(E). Puspan. L. 110–458, § 101(span)(1)(G)(ii), (iii), substituted “, short years, and years with alternate valuation date” for “and short years” in heading and added cl. (iii).

Subsec. (k)(6)(B). Puspan. L. 110–458, § 101(span)(1)(H), struck out “, except that in the case of a payment other than a required installment, the due date shall be the date such payment is required to be made under this section” after “subsection (j)”.

Statutory Notes and Related Subsidiaries

Effective Date of 2021 Amendment

Amendment by Puspan. L. 117–58 applicable to plan years beginning after Dec. 31, 2021, see section 80602(c) of Puspan. L. 117–58, set out as a note under section 430 of Title 26, Internal Revenue Code.

Amendment by section 9705(span) of Puspan. L. 117–2 applicable to plan years beginning after Dec. 31, 2018, see section 9705(c) of Puspan. L. 117–2, set out as a note under section 430 of Title 26, Internal Revenue Code.

Amendment by section 9706(span)(1), (2) of Puspan. L. 117–2 applicable with respect to plan years beginning after Dec. 31, 2019, with certain exceptions, see section 9706(c) of Puspan. L. 117–2, set out as a note under section 430 of Title 26, Internal Revenue Code.

Amendment by section 9707(span) of Puspan. L. 117–2 applicable to plan years ending after Dec. 31, 2017, see section 9707(c) of Puspan. L. 117–2, set out as a note under section 430 of Title 26, Internal Revenue Code.

Effective Date of 2019 Amendment

Amendment by Puspan. L. 116–94 applicable to plan years ending after Dec. 31, 2017, see section 115(c) of Puspan. L. 116–94, set out as a note under section 430 of Title 26, Internal Revenue Code.

Effective Date of 2015 Amendment

Amendment by Puspan. L. 114–74 applicable with respect to plan years beginning after Dec. 31, 2015, see section 504(c) of Puspan. L. 114–74, set out as a note under section 430 of Title 26, Internal Revenue Code.

Effective Date of 2014 Amendment

Amendment by Puspan. L. 113–295 effective Dec. 19, 2014, subject to a savings provision, see section 221(span) of Puspan. L. 113–295, set out as a note under section 1 of Title 26, Internal Revenue Code.

Amendment by Puspan. L. 113–159 applicable with respect to plan years beginning after Dec. 31, 2012, except as otherwise provided, see section 2003(e) of Puspan. L. 113–159, set out as a note under section 430 of Title 26, Internal Revenue Code.

Effective Date of 2012 Amendment

Amendment by Puspan. L. 112–141 applicable with respect to plan years beginning after Dec. 31, 2011, except as otherwise provided, see section 40211(c) of Puspan. L. 112–141, set out as a note under section 404 of Title 26, Internal Revenue Code.

Effective Date of 2010 Amendment

Amendment by section 201(a) of Puspan. L. 111–192 applicable to plan years beginning after Dec. 31, 2007, see section 201(c) of Puspan. L. 111–192, set out as a note under section 430 of Title 26, Internal Revenue Code.

Amendment by section 204(a) of Puspan. L. 111–192 applicable to plan years beginning after Aug. 31, 2009, with certain exceptions, see section 204(c) of Puspan. L. 111–192, set out as a note under section 430 of Title 26, Internal Revenue Code.

Effective Date of 2008 Amendment

Amendment by section 101(span)(1)(A), (F)(i) of Puspan. L. 110–458 applicable to plan years beginning after Dec. 31, 2008, and applicable to a plan for the first plan year beginning after Dec. 31, 2007, under certain conditions, see section 101(span)(3) of Puspan. L. 110–458, set out as a note under section 430 of Title 26, Internal Revenue Code.

Amendment by section 101(span)(1)(B)–(E), (F)(ii)–(H) of 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 Title 26, Internal Revenue Code.

Amendment by section 121(a) of Puspan. L. 110–458 effective as if included in the provisions of Puspan. L. 109–280 to which the amendment relates, see section 121(c) of Puspan. L. 110–458, set out as a note under section 430 of Title 26, Internal Revenue Code.

Amendment by section 202(a) of Puspan. L. 110–458 applicable as if included in the enactment of this section, see section 202(c) of Puspan. L. 110–458, set out as a note under section 430 of Title 26, Internal Revenue Code.

Effective Date

Puspan. L. 109–280, title I, § 102(c), Aug. 17, 2006, 120 Stat. 809, provided that:

“The amendments made by this section [enacting this section] shall apply with respect to plan years beginning after 2007.”

Applicability of Amendments by Subtitles A and B of Title I of Puspan. L. 109–280

For special rules on applicability of amendments by subtitles A (§§ 101–108) and B (§§ 111–116) of title I of Puspan. L. 109–280 to certain eligible cooperative plans, PBGC settlement plans, and eligible government contractor plans, see sections 104, 105, and 106 of Puspan. L. 109–280, set out as notes under section 401 of Title 26, Internal Revenue Code.

Modification of Transition Rule to Pension Funding Requirements

For modification of transition rule to pension funding requirements in the case of a plan that was not required to pay a variable rate premium for the plan year beginning in 1996, has not, in any plan year beginning after 1995, merged with another plan (other than a plan sponsored by an employer that was in 1996 within the controlled group of the plan sponsor), and is sponsored by a company that is engaged primarily in the interurban or interstate passenger bus service, see section 115(a)–(c) of Puspan. L. 109–280, set out as a note under section 430 of Title 26, Internal Revenue Code.