#aac? ,,congress  #b;d ,session  ,s4    
#beaa  ,,an ,,act  ,to am5d ! ,employee 
,retirem5t ,income ,security ,act (     
#aigd to cl>ify ! def9ition ( sub/antial
 cessation ( op]ations4  #a4 ,sub/antial
 cessation ( op]ations  7a7 ,9 g5]al    
,subsection 7e7 ( section #djfb ( !     
,employee ,retirem5t ,income ,security  
,act ( #aigd 7#bi ,u4,s4,c4 #acfb7 is   
am5d$ to read z foll[s3  7e7 ,treatm5t (
 sub/antial cessation ( op]ations  7#a7 
,g5]al rule ,except z provid$ 9         
p>agraphs 7#c7 & 7#d71 if !re is a      
sub/antial cessation ( op]ations at a   
facility 9 any location1 ! employ] %all 
be treat$ ) respect to any s+le employ] 
plan e/abli%$ & ma9ta9$ by ! employ]    
cov]+ p>ticipants at su* facility z if !
 employ] 7 a sub/antial employ] "u a    
plan "u :i* m ?an "o employ] makes      
contributions & ! provisions ( sections 
#djfc1 #djfd1 & #djfe %all apply4  7#b7 
,sub/antial cessation ( op]ations ,=    
purposes ( ?is subsection3 7,a7 ,9 g5]al
 ,! t]m sub/antial cessation ( op]ations

 means a p]man5t cessation ( op]ations  
at a facility :i* results 9 a work=ce   
r$uction ( a numb] ( eligible employees 
at ! facility equival5t to m ?an #ae    
p]c5t ( ! numb] ( all eligible employees
 ( ! employ]1 det]m9$ imm$iately be=e ! 
e>li] (-- 7i7 ! date ( ! employ]'s      
decision to implem5t su* cessation1 or  
7ii7 9 ! case ( a work=ce r$uction :i*  
includes #a or m eligible employees     
describ$ 9 p>agraph 7#f77;,b71 ! e>lie/ 
date on :i* any su* eligible employee 0 
sep>at$ f employm5t4  7,b7 ,work=ce     
r$uction ,subject to subp>agraphs 7,c7 &
 7,d71 ! t]m work=ce r$uction means !   
numb] ( eligible employees at a facility
 :o are sep>at$ f employm5t by reason ( 
! p]man5t cessation ( op]ations ( !     
employ] at ! facility4  7,c7 ,relocation
 ( work=ce ,an eligible employee sep>at$
 f employm5t at a facility %all n be    
tak5 into acc\nt 9 comput+ a work=ce    
r$uction if1 )9 a reasonable p]iod ( "t1
 ! employee is replac$ by ! employ]1 at 
! same or ano!r facility locat$ 9 !     

,unit$ ,/ates1 by an employee :o is a   
citiz5 or resid5t ( ! ,unit$ ,/ates4    
7,d7 ,dispositions ,if1 :e!r by reason (
 a sale or o!r disposition ( ! assets or
 /ock ( a contribut+ sponsor 7or any    
memb] ( ! same controll$ gr\p z su* a   
sponsor7 ( ! plan relat+ to op]ations at
 a facility or o!rwise1 an employ] 7!   
transf]ee employ]7 o!r ?an ! employ] :i*
 exp]i5ces ! sub/antial cessation (     
op]ations 7! transf]or employ]7 conducts
 any portion ( su* op]ations1 !n-- 7i7  
an eligible employee sep>at$ f employm5t
 ) ! transf]or employ] at ! facility    
%all n be tak5 into acc\nt 9 comput+ a  
work=ce r$uction if-- 7,i7 )9 a         
reasonable p]iod ( "t1 ! employee is    
replac$ by ! transf]ee employ] by an    
employee :o is a citiz5 or resid5t ( !  
,unit$ ,/ates2 &  7,,ii7 9 ! case ( an  
eligible employee :o is a p>ticipant 9 a
 s+le employ] plan ma9ta9$ by !         
transf]or employ]1 ! transf]ee employ]1 
)9 a reasonable p]iod ( "t1 ma9ta9s a   
s+le employ] plan :i* includes ! assets 

& liabilities attributable to ! accru$  
b5efit ( ! eligible employee at ! "t (  
sep>ation f employm5t ) ! transf]or     
employ]2 &  7ii7 an eligible employee :o
 cont9ues to be employ$ at ! facility by
 ! transf]ee employ] %all n be tak5 into
 acc\nt 9 comput+ a work=ce r$uction    
if-- 7,i7 ! eligible employee is n a    
p>ticipant 9 a s+le employ] plan ma9ta9$
 by ! transf]or employ]1 or  7,,ii7 9   
any o!r case1 ! transf]ee employ]1 )9 a 
reasonable p]iod ( "t1 ma9ta9s a s+le   
employ] plan :i* includes ! assets &    
liabilities attributable to ! accru$    
b5efit ( ! eligible employee at ! "t (  
sep>ation f employm5t ) ! transf]or     
employ]4  7#c7 ,exemption = plans )     
limit$ und]fund+ ,p>agraph 7#a7 %all n  
apply ) respect to a s+le employ] plan  
if1 = ! plan ye> prec$+ ! plan ye> 9 :i*
 ! cessation occurr$-- 7,a7 !re 7 few]  
?an #ajj p>ticipants ) accru$ b5efits "u
 ! plan z ( ! valuation date ( ! plan = 
! plan ye> 7z det]m9$ "u section        
#cjc7;g77#b772 or  7,b7 ! ratio ( !     

m>ket value ( ! assets ( ! plan to !    
fund+ t>get ( ! plan = ! plan ye> 0 #ij 
p]c5t or great]4  7#d7 ,election to make
 additional contributions to satisfy    
liability  7,a7 ,9 g5]al ,an employ] may
 elect to satisfy ! employ]'s liability 
) respect to a plan by reason ( p>agraph
 7#a7 by mak+ additional contributions  
to ! plan 9 ! am\nt det]m9$ "u          
subp>agraph 7,b7 = ea* plan ye> 9 !     
#g-plan-ye> p]iod beg9n+ ) ! plan ye> 9 
:i* ! cessation occurr$4 ,any su*       
additional contribution = a plan ye>    
%all be 9 addition to any m9imum requir$
 contribution "u section #cjc = su* plan
 ye> & %all be paid n lat] ?an ! e>li]  
(-- 7i7 ! due date = ! m9imum requir$   
contribution = su* ye> "u section       
#cjc7;j72 or  7ii7 9 ! case ( ! fir/ su*
 contribution1 ! date t is #a ye> aft] !
 date on :i* ! employ] notifies !       
,corporation ( ! sub/antial cessation ( 
op]ations or ! date ! ,corporation      
det]m9es a sub/antial cessation (       
op]ations has occurr$1 & 9 ! case (     

subsequ5t contributions1 ! same date 9  
ea* succe$+ ye>4  7,b7 ,am\nt det]m9$   
7i7 ,9 g5]al ,except z provid$ 9 clause 
7iii71 ! am\nt det]m9$ "u ?is           
subp>agraph ) respect to ea* plan ye> 9 
! #g-plan-ye> p]iod is ! product (--    
7,i7 #a_/g ( ! unfund$ ve/$ b5efits     
det]m9$ "u section #djjf7;a77#c77;,e7 z 
( ! valuation date ( ! plan 7z det]m9$  
"u section #cjc7;g77#b77 = ! plan ye>   
prec$+ ! plan ye> 9 :i* ! cessation     
occurr$2 &  7,,ii7 ! r$uction fraction4 
7ii7 ,r$uction fraction ,= purposes (   
clause 7i71 ! r$uction fraction ( a s+le
 employ] plan is equal to-- 7,i7 ! numb]
 ( p>ticipants ) accru$ b5efits 9 ! plan
 :o 7 includ$ 9 comput+ ! work=ce       
r$uction "u p>agraph 7#b77;,b7 z a      
result ( ! cessation ( op]ations at !   
facility2 divid$ by  7,,ii7 ! numb] (   
eligible employees ( ! employ] :o are   
p>ticipants ) accru$ b5efits 9 ! plan1  
det]m9$ z ( ! same date ! det]m9ation "u
 p>agraph 7#b77;,a7 is made4  7iii7     
,limitation ,! additional contribution  

"u ?is subp>agraph = any plan ye> %all n
 exce$ ! excess1 if any1 (-- 7,i7 #be   
p]c5t ( ! diff]5ce betwe5 ! m>ket value 
( ! assets ( ! plan & ! fund+ t>get ( ! 
plan = ! prec$+ plan ye>2 ov]  7,,ii7 ! 
m9imum requir$ contribution "u section  
#cjc = ! plan ye>4  7,c7 ,p]mitt$       
cessation ( annual in/allm5ts :5 plan   
becomes suffici5tly fund$ ,an employ]'s 
obligation to make additional           
contributions "u ?is p>agraph %all n    
apply to-- 7i7 ! fir/ plan ye> 7beg9n+  
on or aft] ! fir/ day ( ! plan ye> 9 :i*
 ! cessation occurs7 = :i* ! ratio ( !  
m>ket value ( ! assets ( ! plan to !    
fund+ t>get ( ! plan = ! plan ye> is #ij
 p]c5t or great]1 or  7ii7 any plan ye> 
foll[+ su* fir/ plan ye>4  7,d7         
,coord9ation ) fund+ waiv]s  7i7 ,9     
g5]al ,if ! ,secret>y ( ! ,treasury     
issues a fund+ waiv] "u section #cjb7;c7
 ) respect to ! plan = a plan ye> 9 !   
#g-plan-ye> p]iod "u subp>agraph 7,a71 !
 additional contribution ) respect to   
su* plan ye> %all be p]man5tly waiv$4   

7ii7 ,notice ,an employ] ma9ta9+ a plan 
) respect to :i* su* a fund+ waiv] has  
be5 issu$ or a reque/ = su* a fund+     
waiv] is p5d+ %all provide notice to !  
,secret>y ( ! ,treasury1 9 su* =m & at  
su* "t z ! ,secret>y ( ! ,treasury %all 
provide1 ( a cessation ( op]ations to   
:i* p>agraph 7#a7 applies4  7,e7        
,en=cem5t  7i7 ,notice ,an employ] mak+ 
! election "u ?is p>agraph %all provide 
notice to ! ,corporation1 9 accordance )
 rules prescrib$ by ! ,corporation1 (-- 
7,i7 su* election1 n lat] ?an #cj days  
aft] ! e>li] ( ! date ! employ] notifies
 ! ,corporation ( ! sub/antial cessation
 ( op]ations or ! date ! ,corporation   
det]m9es a sub/antial cessation (       
op]ations has occurr$2  7,,ii7 ! paym5t 
( ea* additional contribution1 n lat]   
?an #aj days aft] su* paym5t2  7,,iii7  
any failure to pay ! additional         
contribution 9 ! full am\nt = any ye> 9 
! #g-plan-ye> p]iod1 n lat] ?an #aj days
 aft] ! due date = su* paym5t2  7,,iv7 !
 waiv] "u subp>agraph 7,d77i7 ( !       

obligation to make an additional        
contribution = any ye>1 n lat] ?an #cj  
days aft] ! fund+ waiv] describ$ 9 su*  
subp>agraph is grant$2 &  7,v7 !        
cessation ( any obligation to make      
additional contributions "u subp>agraph 
7,c71 n lat] ?an #aj days aft] ! due    
date = paym5t ( ! additional            
contribution = ! fir/ plan ye> to :i*   
su* cessation applies4  7ii7            
,accel]ation ( liability to ! plan =    
failure to pay ,if an employ] fails to  
pay ! additional contribution 9 ! full  
am\nt = any ye> 9 ! #g-plan-ye> p]iod by
 ! due date = su* paym5t1 ! employ]     
%all1 z ( su* date1 be liable to ! plan 
9 an am\nt equal to ! balance :i* rema9s
 unpaid z ( su* date ( ! aggregate am\nt
 ( additional contributions requir$ to  
be paid by ! employ] dur+ su*           
#g-ye>-plan p]iod4 ,! ,corporation may  
waive or settle ! liability describ$ 9 !
 prec$+ s5t5ce1 at ! discretion ( !     
,corporation4  7iii7 ,civil action ,!   
,corporation may br+ a civil action 9 ! 

di/rict c\rts ( ! ,unit$ ,/ates 9       
accordance ) section #djjc7;e7 to compel
 an employ] mak+ su* election to pay !  
additional contributions requir$ "u ?is 
p>agraph4  7#e7 ,def9itions ,= purposes 
( ?is subsection3 7,a7 ,eligible        
employee ,! t]m eligible employee means 
an employee :o is eligible to p>ticipate
 9 an employee p5sion b5efit plan 7z    
def9$ 9 section #c7b77 e/abli%$ &       
ma9ta9$ by ! employ]4  7,b7 ,fund+ t>get
 ,! t]m fund+ t>get means1 ) respect to 
any plan ye>1 ! fund+ t>get z det]m9$ "u
 section #djjf7;a77#c77;,e77iii77,i7 =  
purposes ( det]m9+ ! premium paid to !  
,corporation "u section #djjg = ! plan  
ye>4  7,c7 ,m>ket value ,! m>ket value (
 ! assets ( a plan %all be det]m9$ 9 !  
same mann] z = purposes ( section       
#djjf7;a77#c77;,e74  7#f7 ,special rules
  7,a7 ,*ange 9 op]ation ( c]ta9        
facilities & prop]ty ,= purposes (      
p>agraphs 7#a7 & 7#b71 an employ] %all n
 be treat$ z ceas+ op]ations at a       
qualifi$ lodg+ facility 7z def9$ 9      

section #hef7;d77#i77;,d7 ( ! ,int]nal  
,rev5ue ,code ( #aihf7 if su* op]ations 
are cont9u$ by an eligible indep5d5t    
contractor 7z def9$ 9 section           
#hef7;d77#i77;,a7 ( su* ,code7 pursuant 
to an agreem5t ) ! employ]4  7,b7       
,aggregation ( prior sep>ations ,!      
work=ce r$uction "u p>agraph 7#b7 )     
respect to any cessation ( op]ations    
%all be det]m9$ by tak+ into acc\nt any 
sep>ation f employm5t ( any eligible    
employee at ! facility 7o!r ?an a       
sep>ation :i* is n tak5 into acc\nt z   
work=ce r$uction by reason ( subp>agraph
 7,c7 or 7,d7 ( p>agraph 7#b77 :i*-- 7i7
 is relat$ to ! p]man5t cessation (     
op]ations ( ! employ] at ! facility1 &  
7ii7 occurs dur+ ! #c-ye> p]iod prec$+  
su* cessation4  7,c7 ,no addition to    
prefund+ balance ,= purposes ( section  
#cjc7;f77#f77;,b7 & section             
#dcj7;f77#f77;,b7 ( ! ,int]nal ,rev5ue  
,code ( #aihf1 any additional           
contribution made "u p>agraph 7#d7 %all 
be treat$ 9 ! same mann] z a            

contribution an employ] is requir$ to   
make 9 ord] to avoid a b5efit r$uction  
"u p>agraph 7#a71 7#b71 or 7#d7 (       
section #bjf7;g7 or subsection 7b71 7c71
 or 7e7 ( section #dcf ( ! ,int]nal     
,rev5ue ,code ( #aihf = ! plan ye>4  4  
7b7 ,effective date  7#a7 ,9 g5]al ,!   
am5dm5t made by ?is section %all apply  
to a cessation ( op]ations or o!r ev5t  
at a facility occurr+ on or aft] ! date 
( enactm5t ( ?is ,act4  7#b7 ,transition
 rule ,an employ] t _h a cessation (    
op]ations be=e ! date ( enactm5t ( ?is  
,act 7z det]m9$ "u subsection #djfb7;e7 
( ! ,employee ,retirem5t ,income        
,security ,act ( #aigd z 9 effect be=e !
 am5dm5t made by ?is section71 b did n  
ent] into an arrangem5t ) ! ,p5sion     
,b5efit ,gu>anty ,corporation to satisfy
 ! requirem5ts ( su* subsection 7z s 9  
effect7 be=e su* date ( enactm5t1 %all  
be p]mitt$ to make ! election "u section
 #djfb7;e77#d7 ( su* ,act 7z 9 effect   
aft] ! am5dm5t made by ?is section7 z if
 su* cessation _h occurr$ on su* date ( 

enactm5t4 ,su* election %all be made n  
lat] ?an #cj days aft] su* ,corporation 
issues1 on or aft] su* date ( !         
enactm5t1 a f9al adm9i/rative           
det]m9ation t a sub/antial cessation (  
op]ations has occurr$4  7c7 ,direction  
to ! ,corporation ,! ,p5sion ,b5efit    
,gu>anty ,corporation %all n take any   
en=cem5t1 adm9i/rative1 or o!r action   
pursuant to section #djfb7;e7 ( !       
,employee ,retirem5t ,income ,security  
,act ( #aigd1 or 9 connection ) an      
agreem5t settl+ liability aris+ "u su*  
section1 t is inconsi/5t ) ! am5dm5t    
made by ?is section1 )\t reg>d to :e!r !
 action relates to a cessation or o!r   
ev5t t occurs be=e1 on1 or aft] ! date (
 ! enactm5t ( ?is ,act1 unless su*      
action is 9 connection ) a settlem5t    
agreem5t t is 9 place be=e ,june #a1    
#bjad4 ,! ,p5sion ,b5efit ,gu>anty      
,corporation %all n initiate a new      
en=cem5t action ) respect to section    
#djfb7;e7 ( su* ,act t is inconsi/5t )  
its en=cem5t policy 9 effect on ,june   

#a1 #bjad4  ,pass$ ! ,s5ate ,septemb]   
#af1 #bjad4,secret>y