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Title II — Relief for Single Employer Pension Plans

H.R. 409 · 117th Congress · Jan 21, 2021 · Lineage

II Relief for Single Employer Pension Plans

Sec. 201 Extended amortization for single employer plans

(a)
15-Year amortization under the Internal Revenue Code of 1986— Section 430(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

“(8) 15-year amortization—With respect to plan years beginning after December 31, 2019—

“(A) the shortfall amortization bases for all plan years preceding the first plan year beginning after December 31, 2019 (and all shortfall amortization installments determined with respect to such bases), shall be reduced to zero, and

“(B) subparagraphs (A) and (B) of paragraph (2) shall each be applied by substituting “15-plan-year period” for “7-plan-year period”.”

(b)
15-Year amortization under the Employee Retirement Income Security Act of 1974— Section 303(c) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1083(c)) is amended by adding at the end the following new paragraph:

“(8) 15-year amortization—With respect to plan years beginning after December 31, 2019—

“(A) the shortfall amortization bases for all plan years preceding the first plan year beginning after December 31, 2019 (and all shortfall amortization installments determined with respect to such bases), shall be reduced to zero, and

“(B) subparagraphs (A) and (B) of paragraph (2) shall each be applied by substituting “15-plan-year period” for “7-plan-year period”.”

(c)
Effective date— The amendments made by this section shall apply to plan years beginning after December 31, 2019.

Sec. 202 Extension of pension funding stabilization percentages for single employer plans

(a)
Amendments to Internal Revenue Code of 1986—
(1)
In general— The table contained in subclause (II) of section 430(h)(2)(C)(iv) of the Internal Revenue Code of 1986 is amended to read as follows:
(2)
Floor on 25-year averages— Subclause (I) of section 430(h)(2)(C)(iv) of such Code is amended by adding at the end the following: “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.”.
(b)
Amendments to Employee Retirement Income Security Act of 1974—
(1)
In general— The table contained in subclause (II) of section 303(h)(2)(C)(iv) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1083(h)(2)(C)(iv)(II)) is amended to read as follows:
(2)
Conforming amendments—
(A)
In general— Section 101(f)(2)(D) of such Act (29 U.S.C. 1021(f)(2)(D)) is amended—
(i)
in clause (i) by striking “and the Bipartisan Budget Act of 2015” both places it appears and inserting “, the Bipartisan Budget Act of 2015, and the Emergency Pension Plan Relief Act of 2021”, and
(ii)
in clause (ii) by striking “2023” and inserting “2029”.
(B)
Statements— The Secretary of Labor shall modify the statements required under subclauses (I) and (II) of section 101(f)(2)(D)(i) of such Act to conform to the amendments made by this section.
(3)
Floor on 25-year averages— Subclause (I) of section 303(h)(2)(C)(iv) of such Act (29 U.S.C. 1083(h)(2)(C)(iv)(II)) is amended by adding at the end the following: “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.”.
(c)
Effective date— The amendments made by this section shall apply with respect to plan years beginning after December 31, 2019.