For inflation adjustment of certain items in this section, see Internal Revenue Notices listed in a table under section 401 of this title.
Section 106 of the Pension Protection Act of 2006, referred to in subsec. (c)(2)(D)(iv)(I), is section 106 of Pub. L. 109–280, which is set out as a note under section 401 of this title.
The date of the enactment of this subparagraph, referred to in subsec. (c)(2)(D)(v), is the date of enactment of Pub. L. 111–192, which was approved
The Employee Retirement Income Security Act of 1974, referred to in subsecs. (c)(7)(E)(i)(I), (v)(II), (h)(5)(B)(i), (ii), and (k)(2), (4)(C), is Pub. L. 93–406,
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.
2021—Subsec. (c)(8). Pub. L. 117–2, § 9705(a), added par. (8).
Subsec. (h)(2)(C)(iv)(I). Pub. L. 117–2, § 9706(a)(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). Pub. L. 117–58 amended table generally. Prior to amendment, table related to applicable minimum and maximum percentages for calendar years 2012 to 2029 and after.
Pub. L. 117–2, § 9706(a)(1), amended table generally. Prior to amendment, table related to applicable minimum and maximum percentages for calendar years 2012 to 2023 and after.
Subsec. (m). Pub. L. 117–2, § 9707(a), amended subsec. (m) generally, revising special rules for community newspaper plans.
2019—Subsec. (m). Pub. L. 116–94 added subsec. (m).
2018—Subsec. (c)(7)(E)(v)(II). Pub. L. 115–141, § 401(a)(99), inserted “the” after “title I of”.
Subsec. (h)(2)(F). Pub. L. 115–141, § 401(a)(100), substituted “section 417(e)(3)(D)” for “section 417(e)(3)(D)(i)”.
2017—Subsec. (c)(7)(D)(vii)(II). Pub. L. 115–97 substituted “for ‘calendar year 2016’ in subparagraph (A)(ii)” for “for ‘calendar year 1992’ in subparagraph (B)”.
2015—Subsec. (h)(2)(C)(iv)(II). Pub. L. 114–74 amended table generally. Prior to amendment, table related to applicable minimum and maximum percentages for calendar years 2012 to 2020 and after.
2014—Subsec. (c)(5). Pub. L. 113–295, § 221(a)(57)(C)(i), struck out subpar. (A) designation and heading and subpar. (B) which related to a transition rule for plan years beginning after 2007 and before 2011.
Subsec. (h)(2)(B)(i). Pub. L. 113–159, § 2003(d)(1), substituted “the valuation date for the plan year” for “the first day of the plan year”.
Subsec. (h)(2)(C)(iv)(II). Pub. L. 113–159, § 2003(a), amended table generally. Prior to amendment, table related to applicable minimum and maximum percentages for calendar years 2012 to 2015 and after.
Subsec. (h)(2)(G). Pub. L. 113–295, § 221(a)(57)(D)(i), struck out subpar. (G) which related to a transition rule for plan years beginning in 2008 or 2009.
2012—Subsec. (h)(2)(C)(iv). Pub. L. 112–141, § 40211(a)(1), added cl. (iv).
Subsec. (h)(2)(F). Pub. L. 112–141, § 40211(a)(2)(B), inserted “and the averages determined under subparagraph (C)(iv)” after “subparagraph (C)”.
2010—Subsec. (c)(1). Pub. L. 111–192, § 201(b)(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). Pub. L. 111–192, § 201(b)(1), added subpar. (D).
Subsec. (c)(7). Pub. L. 111–192, § 201(b)(2), added par. (7).
Subsec. (f)(3)(D). Pub. L. 111–192, § 204(b), added subpar. (D).
Subsec. (j)(3)(F). Pub. L. 111–192, § 201(b)(3)(B), added subpar. (F).
2008—Subsec. (b). Pub. L. 110–458, § 101(b)(2)(A), amended subsec. (b) 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). Pub. L. 110–458, § 202(b)(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). Pub. L. 110–458, § 202(b)(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).”
Pub. L. 110–458, § 101(b)(2)(B), inserted “beginning” before “after 2008”.
Subsec. (c)(5)(B)(iv). Pub. L. 110–458, § 202(b)(1), redesignated cl. (iv) as (iii).
Subsec. (c)(5)(B)(iv)(II). Pub. L. 110–458, § 101(b)(2)(C), inserted “for such year” after “beginning in 2007)”.
Subsec. (f)(3)(A). Pub. L. 110–458, § 101(b)(2)(D)(i), struck out “as of the first day of the plan year” after “credited by the plan sponsor”.
Subsec. (f)(4)(A). Pub. L. 110–458, § 101(b)(2)(D)(ii), substituted “paragraph (3)” for “paragraph (2)”.
Subsec. (f)(6)(B)(iii). Pub. L. 110–458, § 101(b)(2)(D)(iii), substituted “subsection (b), (c), or (e) of section 436” for “paragraph (1), (2), or (4) of section 206(g)”.
Subsec. (f)(6)(C). Pub. L. 110–458, § 101(b)(2)(D)(iv), struck out “the sum of” after “by” in introductory provisions.
Subsec. (f)(8). Pub. L. 110–458, § 101(b)(2)(D)(v), struck out “of the Treasury” after “by the Secretary”.
Subsec. (g)(3)(B). Pub. L. 110–458, § 121(b), 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).”
Subsec. (h)(2)(B). Pub. L. 110–458, § 101(b)(2)(E)(i), (ii), in introductory provisions, inserted “and target normal cost” after “funding target” and substituted “benefits” for “liabilities”.
Subsec. (h)(2)(F). Pub. L. 110–458, § 101(b)(2)(E)(iii), (iv), substituted “section 417(e)(3)(D)(i) for such month)” for “section 417(e)(3)(D)(i)) for such month” and “subparagraph (C)” for “subparagraph (B)”.
Subsec. (i)(2)(A). Pub. L. 110–458, § 101(b)(2)(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). Pub. L. 110–458, § 101(b)(2)(F)(i)(II), substituted “the amount determined under subsection (b)(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). Pub. L. 110–458, § 101(b)(2)(F)(ii), substituted “subparagraph (A)” for “subparagraph (A)(ii)” in concluding provisions.
Subsec. (j)(3)(A). Pub. L. 110–458, § 101(b)(2)(G)(i), inserted at end “In the case of plan years beginning in 2008, the funding shortfall for the preceding plan year may be determined using such methods of estimation as the Secretary may provide.”
Subsec. (j)(3)(D)(ii)(II). Pub. L. 110–458, § 101(b)(2)(G)(ii), substituted “section 412(c)” for “section 302(c)”.
Subsec. (j)(3)(E). Pub. L. 110–458, § 101(b)(2)(G)(iii), (iv), substituted “, short years, and years with alternate valuation date” for “and short years” in heading and added cl. (iii).
Subsec. (k)(1). Pub. L. 110–458, § 101(b)(2)(H)(i), inserted “(as provided under paragraph (2))” after “applies” in introductory provisions.
Subsec. (k)(6)(B). Pub. L. 110–458, § 101(b)(2)(H)(ii), 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 section 430” before period at end.
Pub. L. 117–58, div. H, title VI, § 80602(c),
Pub. L. 117–2, title IX, § 9705(c),
Pub. L. 117–2, title IX, § 9706(c), “(1) The amendments made by this section [amending this section and sections 1021 and 1083 of Title 29, Labor] shall apply with respect to plan years beginning after “(2) A plan sponsor may elect not to have the amendments made by this section apply to any plan year beginning before “(A) for all purposes for which such amendments apply, or“(B) solely for purposes of determining the adjusted funding target attainment percentage under sections 436 of the Internal Revenue Code of 1986 and 206(g) of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1056(g)] for such plan year.A plan shall not be treated as failing to meet the requirements of sections 204(g) of such Act [29 U.S.C. 1054(g)] and 411(d)(6) of such Code solely by reason of an election under this paragraph.”
Pub. L. 117–2, title IX, § 9707(c),
Pub. L. 116–94, div. O, title I, § 115(c),
Amendment by Pub. L. 115–97 applicable to taxable years beginning after
Pub. L. 114–74, title V, § 504(c),
Amendment by Pub. L. 113–295 effective
Pub. L. 113–159, title II, § 2003(e), “(1) The amendments made by subsections (a), (b), and (d) [amending this section and sections 1021 and 1083 of Title 29, Labor] shall apply with respect to plan years beginning after “(2) A plan sponsor may elect not to have the amendments made by subsections (a), (b), and (d) apply to any plan year beginning before “(A) for all purposes for which such amendments apply, or“(B) solely for purposes of determining the adjusted funding target attainment percentage under sections 436 of the Internal Revenue Code of 1986 [26 U.S.C. 436] and 206(g) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1054(g) [probably should be 29 U.S.C. 1056(g)]) for such plan year.A plan shall not be treated as failing to meet the requirements of section 204(g) of such Act [29 U.S.C. 1054(g)] and section 411(d)(6) of such Code [26 U.S.C. 411(d)(6)] solely by reason of an election under this paragraph.”
Amendment by Pub. L. 112–141 applicable with respect to plan years beginning after
Pub. L. 111–192, title II, § 201(c),
Pub. L. 111–192, title II, § 204(c), “(1) Except as provided in paragraph (2), the amendments made by this section [amending this section and section 1083 of Title 29, Labor] shall apply to plan years beginning after “(2) In the case of a plan for which the valuation date is not the first day of the plan year, the amendments made by this section shall apply to plan years beginning after
Pub. L. 110–458, title I, § 101(b)(3), “(A) Except as provided in subparagraph (B), the amendments made by paragraphs (1)(A) [amending section 1083 of Title 29, Labor], (1)(F)(i) [amending section 1083 of Title 29], (2)(A) [amending this section], and (2)(F)(i) [amending this section] shall apply to plan years beginning after
“(B)
Amendment by section 101(b)(2)(B)–(E), (F)(ii)–(H) of Pub. L. 110–458 effective as if included in the provisions of Pub. L. 109–280 to which the amendment relates, except as otherwise provided, see section 112 of Pub. L. 110–458, set out as a note under section 72 of this title.
Pub. L. 110–458, title I, § 121(c),
Pub. L. 110–458, title II, § 202(c),
Pub. L. 109–280, title I, § 112(b),
Pub. L. 116–136, div. A, title III, § 3608, “(a) In the case of any minimum required contribution (as determined under section 430(a) of the Internal Revenue Code of 1986 and section 303(a) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1083(a))) which (but for this section) would otherwise be due under section 430(j) of such Code (including quarterly contributions under paragraph (3) thereof) and section 303(j) of such Act (29 U.S.C. 1083(j)) (including quarterly contributions under paragraph (3) thereof) during calendar year 2020—“(1) the due date for such contributions shall be “(2) the amount of each such minimum required contribution shall be increased by interest accruing for the period between the original due date (without regard to this section) for the contribution and the payment date, at the effective rate of interest for the plan for the plan year which includes such payment date.“(b) For purposes of section 436 of the Internal Revenue Code of 1986 and section 206(g) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1056(g)), a plan sponsor may elect to treat the plan’s adjusted funding target attainment percentage for the last plan year ending before
Pub. L. 117–328, div. T, title III, § 335, “(a) Not later than 18 months after the date of the enactment of this Act [“(b) The amendments required under subsection (a) shall be deemed to have been made as of the date of the enactment of this Act, and as of such date all applicable laws shall be applied in all respects as though the actions which the Secretary of the Treasury (or the Secretary’s delegate) is required to take under such subsection had been taken.”
Pub. L. 114–74, title V, § 503, “(a) For purposes of subclause (I) of section 430(h)(3)(C)(iii) of the Internal Revenue Code of 1986 and subclause (I) of section 303(h)(3)(C)(iii) of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1083(h)(3)(C)(iii)], the determination of whether plans have credible information shall be made in accordance with established actuarial credibility theory, which—“(1) is materially different from rules under such section of such Code, including Revenue Procedure 2007–37, that are in effect on the date of the enactment of this Act [“(2) permits the use of tables that reflect adjustments to the tables described in subparagraphs (A) and (B) of section 430(h)(3) of such Code, and subparagraphs (A) and (B) of section 303(h)(3) of such Act, if such adjustments are based on the experience described in subclause (II) of section 430(h)(3)(C)(iii) of such Code and in subclause (II) of section 303(h)(3)(C)(iii) of such Act.“(b) This section shall apply to plan years beginning after
For special rules on applicability of 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.
Pub. L. 109–280, title I, § 115(a)–(c), “In the case of a plan year beginning in calendar year: The applicable percentage is: 2008 90 percent 2009 92 percent 2010 94 percent 2011 96 percent.“(a) In the case of a plan that—“(1) was not required to pay a variable rate premium for the plan year beginning in 1996,“(2) 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“(3) is sponsored by a company that is engaged primarily in the interurban or interstate passenger bus service,the rules described in subsection (b) shall apply for any plan year beginning after “(b) The rules described in this subsection are as follows:“(1) For purposes of section 430(j)(3) of the Internal Revenue Code of 1986 and section 303(j)(3) of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1083(j)(3)], the plan shall be treated as not having a funding shortfall for any plan year.“(2) For purposes of—“(A) determining unfunded vested benefits under section 4006(a)(3)(E)(iii) of such Act [29 U.S.C. 1306(a)(3)(E)(iii)], and“(B) determining any present value or making any computation under section 412 of such Code or section 302 of such Act [29 U.S.C. 1082],the mortality table shall be the mortality table used by the plan.“(3) [Former] Section 430(c)(5)(B) of such Code and [former] section 303(c)(5)(B) of such Act [29 U.S.C. 1083(c)(5)(B)] (relating to phase-in of funding target for exemption from new shortfall amortization base) shall each be applied by substituting ‘2012’ for ‘2011’ therein and by substituting for the table therein the following:“(c) Any term used in this section which is also used in section 430 of such Code or section 303 of such Act [29 U.S.C. 1083] shall have the meaning provided such term in such section. If the same term has a different meaning in such Code and such Act [29 U.S.C. 1001 et seq.], such term shall, for purposes of this section, have the meaning provided by such Code when applied with respect to such Code and the meaning provided by such Act when applied with respect to such Act.”
Pub. L. 109–280, title IV, § 402, “(a) The plan sponsor of an eligible plan may elect to either—“(1) have the rules of subsection (b) apply, or“(2) have section 303 of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1083] and section 430 of the Internal Revenue Code of 1986 applied to its first taxable year beginning in 2008 by amortizing the shortfall amortization base for such taxable year over a period of 10 plan years (rather than 7 plan years) beginning with such plan year and by using, in determining the funding target for each of the 10 plan years during such period, an interest rate of 8.25 percent (rather than the segment rates calculated on the basis of the corporate bond yield curve).“(b) “(1) If an election is made under subsection (a)(1) to have this subsection apply to an eligible plan and the requirements of paragraphs (2) and (3) are met with respect to the plan—“(A) in the case of any applicable plan year beginning before “(B) in the case of any applicable plan year beginning on or after “(2) “(A) The requirements of this paragraph are met if, effective as of the first day of the first applicable plan year and at all times thereafter while an election under this section is in effect, the plan provides that—“(i) the accrued benefit, any death or disability benefit, and any social security supplement described in the last sentence of section 411(a)(9) of such Code and section 204(b)(1)(G) of such Act [29 U.S.C. 1054(b)(1)(G)], of each participant are frozen at the amount of such benefit or supplement immediately before such first day, and“(ii) all other benefits under the plan are eliminated, but only to the extent the freezing or elimination of such benefits would have been permitted under section 411(d)(6) of such Code and section 204(g) of such Act if they had been implemented by a plan amendment adopted immediately before such first day.“(B) If a plan provides that an accrued benefit of a participant which has been subject to any limitation under section 415 of such Code will be increased if such limitation is increased, the plan shall not be treated as meeting the requirements of this section unless, effective as of the first day of the first applicable plan year (or, if later, the date of the enactment of this Act [“(3) “(A) The requirements of this paragraph are met if no applicable benefit increase takes effect at any time during the period beginning on “(B) For purposes of this paragraph, the term ‘applicable benefit increase’ means, with respect to any plan year, any increase in liabilities of the plan by plan amendment (or otherwise provided in regulations provided by the Secretary) which, but for this paragraph, would occur during the plan year by reason of—“(i) any increase in benefits,“(ii) any change in the accrual of benefits, or“(iii) any change in the rate at which benefits become nonforfeitable under the plan.“(4) Paragraphs (2) and (3) shall not apply to any accrual or increase with respect to imputed service provided to a participant during any period of the participant’s disability occurring on or after the effective date of the plan amendment providing the restrictions under paragraph (2) (or on or after “(A) was receiving disability benefits as of such date, or“(B) was receiving sick pay and subsequently determined to be eligible for disability benefits as of such date.“(c) For purposes of this section—“(1) The term ‘eligible plan’ means a defined benefit plan (other than a multiemployer plan) to which sections 302 of such Act [29 U.S.C. 1082] and 412 of such Code applies which is sponsored by an employer—“(A) which is a commercial passenger airline, or“(B) the principal business of which is providing catering services to a commercial passenger airline.“(2) The term ‘applicable plan year’ means each plan year to which the election under subsection (a)(1) applies under subsection (d)(1)(A).“(d) “(1) “(A) If an election under subsection (a)(1) was made with respect to an eligible plan, the plan sponsor may select either a plan year beginning in 2006 or a plan year beginning in 2007 as the first plan year to which such election applies. The election shall apply to such plan year and all subsequent years. The election shall be made—“(i) not later than “(ii) not later than “(B) 10 An election under subsection (a)(2) shall be made not later than “(C) In the case of an election under subsection (a)(1), the plan sponsor may specify a new plan year in such election and the plan year of the plan may be changed to such new plan year without the approval of the Secretary of the Treasury.“(2) A plan sponsor shall make any election under subsection (a) in such manner as the Secretary of the Treasury may prescribe. Such election, once made, may be revoked only with the consent of such Secretary.“(e) In the case of an eligible plan with respect to which an election is made under subsection (a)(1)—“(1) In the case of any applicable plan year during the amortization period, the minimum required contribution shall be the amount necessary to amortize the unfunded liability of the plan, determined as of the first day of the plan year, in equal annual installments (until fully amortized) over the remainder of the amortization period. Such amount shall be separately determined for each applicable plan year.“(2) In the case of any plan year beginning after the end of the amortization period, section 302(a)(2)(A) of such Act [29 U.S.C. 1082(a)(2)(A)] and section 412(a)(2)(A) of such Code shall apply to such plan, but the prefunding balance and funding standard carryover balance as of the first day of the first of such years under section 303(f) of such Act [29 U.S.C. 1083(f)] and section 430(f) of such Code shall be zero.“(3) For purposes of this section—“(A) The term ‘unfunded liability’ means the unfunded accrued liability under the plan, determined under the unit credit funding method.“(B) The term ‘amortization period’ means the 17-plan year period beginning with the first applicable plan year.“(4) In determining the minimum required contribution and amortization amount under this subsection—“(A) the provisions of section 302(c)(3) of such Act and section 412(c)(3) of such Code, as in effect before the date of enactment of this section [“(B) a rate of interest of 8.85 percent shall be used for all calculations requiring an interest rate, and“(C) the value of plan assets shall be determined under sections 303(g)(3) of such Act [29 U.S.C. 1083(g)(3)] and 430(g)(3) of such Code.“(5) For purposes of subsection (b), if, with respect to any eligible plan to which this subsection applies—“(A) any applicable plan year includes the date of the enactment of this Act,“(B) a plan was spun off from the eligible plan during the plan year but before such date of enactment,the minimum required contribution under paragraph (1) for the eligible plan for such applicable plan year shall be an aggregate amount determined as if the plans were a single plan for that plan year (based on the full 12-month plan year in effect prior to the spin-off). The employer shall designate the allocation of such aggregate amount between such plans for the applicable plan year.