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§ 1084. Extension of amortization periods
(a)
Determinations by Secretary in granting extension
The period of years required to amortize any unfunded liability (described in any clause of subsection (b)(2)(B) of section
1082 of this title) of any plan may be extended by the Secretary for a period of time (not in excess of 10 years) if he determines that such extension would carry out the purposes of this chapter and would provide adequate protection for participants under the plan and their beneficiaries and if he determines that the failure to permit such extension would—
In the case of a plan other than a multiemployer plan, the interest rate applicable for any plan year under any arrangement entered into by the Secretary in connection with an extension granted under this subsection shall be the greater of
(A)
150 percent of the Federal mid-term rate (as in effect under section
1274 of title
26 for the 1st month of such plan year), or
(B)
the rate of interest used under the plan in determining costs. In the case of a multiemployer plan, such rate shall be the rate determined under section
6621
(b) of title
26.
(b)
Amendment of plan
(1)
No amendment of the plan which increases the liabilities of the plan by reason of any increase in benefits, any change in the accrual of benefits, or any change in the rate at which benefits become nonforfeitable under the plan shall be adopted if a waiver under section
1083
(a) of this title or an extension of time under subsection (a) of this section is in effect with respect to the plan, or if a plan amendment described in section
1082
(c)(8) of this title has been made at any time in the preceding 12 months (24 months in the case of a multiemployer plan). If a plan is amended in violation of the preceding sentence, any such waiver, or extension of time, shall not apply to any plan year ending on or after the date on which such amendment is adopted.
(2)
Paragraph (1) shall not apply to any plan amendment which—
(A)
the Secretary determines to be reasonable and which provides for only de minimis increases in the liabilities of the plan,
(C)
is required as a condition of qualification under part I of subchapter D, of chapter 1, of title
26.
(c)
Notice of filing of application for extension
(1)
The Secretary of the Treasury shall, before granting an extension under this section, require each applicant to provide evidence satisfactory to such Secretary that the applicant has provided notice of the filing of the application for such extension to each employee organization representing employees covered by the affected plan.
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Notes
3 Update(s)
Parallel authorities (CFR)
PDF (2 pages)
Title 29 RSS
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