,i #aae? ,,congress #b;d ,session ,h4 ,r4 #diig ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,febru>y #ac1 #bjah,mr4 ,roe ( ,t5nessee 7= himself & ,mr4 ,norcross7 introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,education & ! ,work=ce1 & 9 addition to ! ,committee on ,ways & ,means1 = a p]iod to be subsequ5tly det]m9$ by ! ,speak]1 9 ea* case = consid]ation ( su* provisions z fall )9 ! jurisdiction ( ! committee conc]n$ ,a ,,bill ,to am5d ! ,employee ,retirem5t ,income ,security ,act ( #aigd & ! ,int]nal ,rev5ue ,code ( #aihf to au?orize a new composite multiemploy] p5sion plan design1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,giv+ ,retirem5t ,options to ,work]s ,act ( #bjah or ! ,,gr[ ,act4 #b4 ,composite plans 7a7 ,am5dm5t to ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#a7 ,9 g5]al ,title ,i ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #ajja et seq47 is am5d$ by add+ at ! end ! foll[+3 #h ,composite ,plans & ,legacy ,plans #hja4 ,composite plan def9$ 7a7 ,9 g5]al ,= purposes ( ?is ,act1 ! t]m composite plan means a p5sion plan-- 7#a7 :i* is a multiemploy] plan t is nei!r a def9$ b5efit plan nor a def9$ contribution plan2 7#b7 ! t]ms ( :i* provide t ! plan is a composite plan = purposes ( ?is title ) respect to :i* n m ?an "o multiemploy] def9$ b5efit plan is treat$ z a legacy plan )9 ! mean+ ( section #hje1 unless !re is m ?an "o legacy plan foll[+ a m]g] ( composite plans "u section #hjf2 7#c7 :i* provides sy/ematically = ! paym5t ( b5efits-- 7,a7 objectively calculat$ pursuant to a =mula enum]at$ 9 ! plan docum5t ) respect to plan p>ticipants aft] retirem5t1 = life2 & 7,b7 9 ! =m ( life annuities1 except = b5efits :i* "u section #bjc7;e7 may be imm$iately di/ribut$ )\t ! cons5t ( ! p>ticipant2 7#d7 = :i* ! plan contributions = ! fir/ plan ye> are at lea/ #abj p]c5t ( ! normal co/ = ! plan ye>2 7#e7 :i* requires-- 7,a7 an annual valuation ( ! liability ( ! plan z ( a date )9 ! plan ye> to :i* ! valuation ref]s or )9 "o mon? prior to ! beg9n+ ( su* ye>2 7,b7 an annual actu>ial det]m9ation ( ! plan's curr5t fund$ ratio & project$ fund$ ratio "u section #hjb7;a72 7,c7 corrective action ?r\gh a realignm5t program pursuant to section #hjc :5ev] ! plan's project$ fund$ ratio is bel[ #abj p]c5t = ! plan ye>2 & 7,d7 an annual notification to ea* p>ticipant describ+ ! p>ticipant's b5efits "u ! plan & expla9+ t su* b5efits may be subject to r$uction "u a realignm5t program pursuant to section #hjc bas$ on ! plan's fund$ /atus 9 future plan ye>s2 & 7#f7 ! bo>d ( tru/ees ( :i* includes at lea/ "o retiree or b5efici>y 9 pay /atus dur+ ea* plan ye> foll[+ ! fir/ plan ye> 9 :i* at lea/ #e p]c5t ( ! p>ticipants 9 ! plan are retirees or b5efici>ies 9 pay /atus4 7b7 ,transition f a multiemploy] def9$ b5efit plan 7#a7 ,9 g5]al ,! plan sponsor ( a def9$ b5efit plan t is a multiemploy] plan may1 subject to p>agraph 7#b71 am5d ! plan to incorporate ! features ( a composite plan z a compon5t ( ! multiemploy] plan sep>ate f ! def9$ b5efit plan compon5t1 except 9 ! case ( a def9$ b5efit plan = :i* ! plan actu>y has c]tifi$ "u section #cje7;b77#c7 t ! plan is or w be 9 critical /atus = ! plan ye> 9 :i* su* am5dm5t w\ld become effective or = any ( ! succe$+ #e plan ye>s4 7#b7 ,requirem5ts ,any am5dm5t pursuant to p>agraph 7#a7 to incorporate ! features ( a composite plan z a compon5t ( a multiemploy] plan %all-- 7,a7 apply ) respect to all collective b>ga9+ agreem5ts provid+ = contributions to ! multiemploy] plan on or aft] ! effective date ( ! am5dm5t2 7,b7 apply ) respect to all p>ticipants 9 ! multiemploy] plan = :om contributions are made to ! multiemploy] plan on or aft] ! effective date ( ! am5dm5t2 7,c7 specify t ! effective date ( ! am5dm5t is-- 7i7 ! fir/ day ( a specifi$ plan ye> foll[+ ! date ( ! adoption ( ! am5dm5t1 except t ! plan sponsor may alt]natively provide = a sep>ate effective date ) respect to ea* collective b>ga9+ agreem5t "u :i* contributions to ! multiemploy] plan are requir$1 :i* %all occur on ! fir/ day ( ! fir/ plan ye> beg9n+ aft] ! t]m9ation1 or if e>li]1 ! re-op5+1 ( ea* su* agreem5t1 or su* e>li] date z ! p>ties to ! agreem5t & ! plan sponsor ( ! multiemploy] plan %all agree to2 & 7ii7 n lat] ?an ! fir/ day ( ! fif? plan ye> beg9n+ on or aft] ! date ( ! adoption ( ! am5dm5t2 7,d7 specify t1 z ( ! am5dm5t's effective date1 no fur!r b5efits %all accrue "u ! def9$ b5efit compon5t ( ! multiemploy] plan2 & 7,e7 specify t1 z ( ! am5dm5t's effective date1 ! plan sponsor ( ! multiemploy] plan %all be ! plan sponsor ( bo? ! composite plan compon5t & ! def9$ b5efit plan compon5t ( ! plan4 7#c7 ,special rules ,if a multiemploy] plan is am5d$ pursuant to p>agraph 7#a7-- 7,a7 ! requirem5ts ( ?is title & title ,,iv %all be appli$ to ! composite plan compon5t & ! def9$ b5efit plan compon5t ( ! multiemploy] plan z if ea* su* compon5t 7 ma9ta9$ z a sep>ate plan2 & 7,b7 ! assets ( ! composite plan compon5t & ! def9$ b5efit plan compon5t ( ! plan %all be held 9 a s+le tru/ =m+ "p ( ! plan "u :i* ! tru/ in/rum5t expressly provides-- 7i7 = sep>ate acc\nts 7& appropriate records7 to be ma9ta9$ to reflect ! int]e/ :i* ea* ( ! plan compon5ts has 9 ! tru/1 includ+ sep>ate acc\nt+ = additions to ! tru/ = ! b5efit ( ea* plan compon5t1 disbursem5ts made f ea* plan compon5t's acc\nt 9 ! tru/1 inve/m5t exp]i5ce ( ! tru/ allocable to t acc\nt1 & adm9i/rative exp5ses 7:e!r direct exp5ses or %>$ exp5ses allocat$ proportionally71 & p]mits1 b does n require1 ! pool+ ( "s or all ( ! assets ( ! two plan compon5ts = inve/m5t purposes2 & 7ii7 t ! assets ( ea* ( ! two plan compon5ts %all be held1 inve/$1 re9ve/$1 manag$1 adm9i/]$ & di/ribut$ = ! exclusive b5efit ( ! p>ticipants & b5efici>ies ( ea* su* plan compon5t1 & 9 no ev5t %all ! assets ( "o ( ! plan compon5ts be available to pay b5efits due "u ! o!r plan compon5t4 7#d7 ,n a t]m9ation ev5t ,not)/&+ section #djda;,a1 an am5dm5t pursuant to p>agraph 7#a7 to incorporate ! features ( a composite plan z a compon5t ( a multiemploy] plan does n con/itute t]m9ation ( ! multiemploy] plan4 7#e7 ,notice to ! ,secret>y 7,a7 ,notice ,! plan sponsor ( a composite plan %all provide notice to ! ,secret>y ( ! int5t to e/abli% ! composite plan 7or1 9 ! case ( a composite plan incorporat$ z a compon5t ( a multiemploy] plan z describ$ 9 p>agraph 7#a71 ! int5t to am5d ! multiemploy] plan to incorporate su* composite plan7 at lea/ #cj days prior to ! effective date ( su* e/abli%m5t or am5dm5t4 7,b7 ,c]tification ,9 ! case ( a composite plan incorporat$ z a compon5t ( a multiemploy] plan z describ$ 9 p>agraph 7#a71 su* notice %all include a c]tification by ! plan actu>y "u section #cje7;b77#c7 t ! effective date ( ! am5dm5t occurs 9 a plan ye> = :i* ! multiemploy] plan is n 9 critical /atus = t plan ye> & any ( ! succe$+ #e plan ye>s4 7#f7 ,ref]5ces to composite plan compon5t ,z us$ 9 ?is "p1 ! t]m composite plan includes a composite plan compon5t add$ to a def9$ b5efit plan pursuant to p>agraph 7#a74 7#g7 ,rule ( con/ruction ,p>agraph 7#b77;,a7 %all n be con/ru$ z prev5t+ ! plan sponsor ( a multiemploy] plan f adopt+ an am5dm5t pursuant to p>agraph 7#a7 because "s collective b>ga9+ agreem5ts are am5d$ to cease any cov]$ employ]'s obligation to contribute to ! multiemploy] plan be=e or aft] ! plan am5dm5t is effective4 ,p>agraph 7#b77;,b7 %all n be con/ru$ z prev5t+ ! plan sponsor ( a multiemploy] plan f adopt+ an am5dm5t pursuant to p>agraph 7#a7 because "s p>ticipants cease to h contributions made to ! multiemploy] plan on _! behalf be=e or aft] ! plan am5dm5t is effective4 7c7 ,coord9ation ) fund+ rules ,except z o!rwise provid$ 9 ?is title1 sections #cjb1 #cjd1 & #cje %all n apply to a composite plan4 7d7 ,treatm5t ( a composite plan ,= purposes ( ?is ,act 7o!r ?an sections #cjb & #dbde71 a composite plan %all be treat$ z if x 7 a def9$ b5efit plan unless a diff]5t treatm5t is provid$ = "u applicable law4 #hjb4 ,fund$ ratios2 actu>ial assumptions 7a7 ,c]tification ( fund$ ratios 7#a7 ,9 g5]al ,n lat] ?an ! "o-hundr$ tw5tie? day ( ea* plan ye> ( a composite plan1 ! plan actu>y ( ! composite plan %all c]tify to ! ,secret>y1 ! ,secret>y ( ! ,treasury1 & ! plan sponsor ! plan's curr5t fund$ ratio & project$ fund$ ratio = ! plan ye>4 7#b7 ,det]m9ation ( curr5t fund$ ratio & project$ fund$ ratio ,= purposes ( ?is section3 7,a7 ,curr5t fund$ ratio ,! curr5t fund$ ratio is ! ratio 7express$ z a p]c5tage7 (-- 7i7 ! value ( ! plan's assets z ( ! fir/ day ( ! plan ye>2 to 7ii7 ! plan actu>y's be/ e/imate ( ! pres5t value ( ! plan liabilities z ( ! fir/ day ( ! plan ye>4 7,b7 ,project$ fund$ ratio ,! project$ fund$ ratio is ! curr5t fund$ ratio project$ to ! fir/ day ( ! fifte5? plan ye> foll[+ ! plan ye> = :i* ! det]m9ation is be+ made4 7#c7 ,consid]ation ( contribution rate increases ,= purposes ( projections "u ?is subsection1 ! plan sponsor may anticipate contribution rate increases beyond ! t]m ( ! curr5t collective b>ga9+ agreem5t & any agre$-to supplem5ts1 up to a maximum ( #b4e p]c5t p] ye>1 comp\nd$ annually1 unless x w\ld be unreasonable "u ! circum/ances to assume t contributions w\ld increase by t am\nt4 7b7 ,actu>ial assumptions & me?ods ,= purposes ( ?is "p3 7#a7 ,9 g5]al ,all co/s1 liabilities1 rates ( int]e/ & o!r factors "u ! plan %all be det]m9$ = a plan ye> on ! basis ( actu>ial assumptions & me?ods-- 7,a7 ea* ( :i* is reasonable 7tak+ into acc\nt ! exp]i5ce ( ! plan & reasonable expectations72 7,b7 :i*1 9 comb9ation1 (f] ! actu>y's be/ e/imate ( anticipat$ exp]i5ce "u ! plan2 & 7,c7 ) respect to :i* any *ange f ! actu>ial assumptions & me?ods us$ 9 ! previ\s plan ye> %all be c]tifi$ by ! plan actu>y & ! actu>ial rationale = su* *ange provid$ 9 ! annual report requir$ by section #ajc4 7#b7 ,fair m>ket value ( assets ,! value ( ! plan's assets %all be tak5 into acc\nt on ! basis ( _! fair m>ket value4 7#c7 ,det]m9ation ( normal co/ & plan liabilities ,a plan's normal co/ & liabilities %all be bas$ on ! mo/ rec5t actu>ial valuation requir$ "u section #hja7;a77#e77;,a7 & ! unit cr$it fund+ me?od4 7#d7 ,"t :5 c]ta9 contributions deem$ made ,any contributions = a plan ye> made by an employ] aft] ! la/ day ( su* plan ye>1 b n lat] ?an two & "o-half mon?s aft] su* day1 %all be deem$ to h be5 made on su* la/ day4 ,= purposes ( ?is p>agraph1 su* two & "o-half mon? p]iod may be ext5d$ = n m ?an six mon?s "u regulations prescrib$ by ! ,secret>y ( ! ,treasury4 7#e7 ,additional actu>ial assumptions ,except :]e o!rwise provid$ 9 ?is "p1 ! provisions ( section #cje7;b77#c77;,b7 %all apply to any det]m9ation or projection "u ?is "p4 #hjc4 ,realignm5t program 7a7 ,realignm5t program 7#a7 ,adoption ,9 any case 9 :i* ! plan actu>y c]tifies "u section #hjb7;a7 t ! plan's project$ fund$ ratio is bel[ #abj p]c5t = ! plan ye>1 ! plan sponsor %all adopt a realignm5t program "u p>agraph 7#b7 n lat] ?an #baj days aft] ! due date ( ! c]tification requir$ "u su* section #hjb7;a74 ,! plan sponsor %all adopt an updat$ realignm5t program = ea* succe$+ plan ye> = :i* a c]tification describ$ 9 ! prec$+ s5t5ce is made4 7#b7 ,cont5t ( realignm5t program 7,a7 ,9 g5]al ,a realignm5t program adopt$ "u ?is p>agraph is a writt5 program :i* consi/s ( all reasonable measures1 includ+ options or a range ( options to be und]tak5 by ! plan sponsor or propos$ to ! b>ga9+ p>ties1 =mulat$1 bas$ on reasonably anticipat$ exp]i5ce & reasonable actu>ial assumptions1 to enable ! plan to a*ieve a project$ fund$ ratio ( at lea/ #abj p]c5t = ! foll[+ plan ye>4 7,b7 ,initial program elem5ts ,reasonable measures "u a realignm5t program describ$ 9 subp>agraph 7,a7 may include any ( ! foll[+3 7i7 ,propos$ contribution increases4 7ii7 ,a r$uction 9 ! rate ( future b5efit accruals1 s long z ! result+ rate is n less ?an #a p]c5t ( ! contributions on :i* b5efits are bas$ z ( ! />t ( ! plan ye> 7or ! equival5t /&>d accrual rate z describ$ 9 section #cje7;e77#f774 7iii7 ,a modification or elim9ation ( adju/able b5efits ( p>ticipants t are n 9 pay /atus be=e ! date ( ! notice requir$ "u subsection 7b77#a74 7iv7 ,any o!r lawfully available measures n specifically describ$ 9 ?is subp>agraph or subp>agraph 7,c7 or 7,d7 t ! plan sponsor det]m9es are reasonable4 7,c7 ,additional program elem5ts ,if ! plan sponsor has det]m9$ t all reasonable measures available "u subp>agraph 7,b7 w n enable ! plan to a*ieve a project$ fund$ ratio ( at lea/ #abj p]c5t = ! foll[+ plan ye>1 su* reasonable measures may also include-- 7i7 a r$uction ( accru$ b5efits t are n 9 pay /atus by ! date ( ! notice requir$ "u subsection 7b77#a72 or 7ii7 a r$uction ( any b5efits ( p>ticipants t are 9 pay /atus be=e ! date ( ! notice requir$ "u subsection 7b77#a7 o!r ?an core b5efits z def9$ 9 p>agraph 7#d74 7,d7 ,additional r$uctions ,9 ! case ( a composite plan = :i* ! plan sponsor has det]m9$ t all reasonable measures available "u subp>agraphs 7,b7 & 7,c7 w n enable ! plan to a*ieve a project$ fund$ ratio ( at lea/ #abj p]c5t = ! foll[+ plan ye>1 su* reasonable measures may also include-- 7i7 a fur!r r$uction 9 ! rate ( future b5efit accruals )\t reg>d to ! limitation applicable "u subp>agraph 7,b77ii72 or 7ii7 a r$uction ( core b5efits2 provid$ t su* r$uctions %all be equitably di/ribut$ across ! p>ticipant & b5efici>y population1 tak+ into acc\nt factors1 ) respect to p>ticipants & b5efici>ies & _! b5efits1 t may include "o or m ( ! factors li/$ 9 subclauses 7,i7 ?r\gh 7,x7 ( section #cje7;e77#i77;,d77vi71 to ! ext5t necess>y to enable ! plan to a*ieve a project$ fund$ ratio ( at lea/ #abj p]c5t = ! foll[+ plan ye>1 or at ! election ( ! plan sponsor1 a project$ fund$ ratio ( at lea/ #ajj p]c5t = ! foll[+ plan ye> & a curr5t fund$ ratio ( at lea/ #ij p]c5t4 7#c7 ,adju/able b5efit def9$ ,= purposes ( ?is "p1 ! t]m adju/able b5efit means-- 7,a7 b5efits1 rights1 & features "u ! plan1 includ+ po/-retirem5t dea? b5efits1 #fj-mon? gu>antees1 disability b5efits n yet 9 pay /atus1 & simil> b5efits2 7,b7 any e>ly retirem5t b5efit or retirem5t-type subsidy 7)9 ! mean+ ( section #bjd7;g77#b77;,a77 & any b5efit paym5t option 7o!r ?an ! qualifi$ jo9t & survivor annuity72 & 7,c7 b5efit increases t 7 adopt$ 7or1 if lat]1 took effect7 less ?an #fj mon?s be=e ! fir/ day su* realignm5t program took effect4 7#d7 ,core b5efit def9$ ,= purposes ( ?is "p1 ! t]m core b5efit means a p>ticipant's accru$ b5efit payable 9 ! normal =m ( an annuity comm5c+ at normal retirem5t age1 det]m9$ )\t reg>d to-- 7,a7 any e>ly retirem5t b5efits1 retirem5t-type subsidies1 or o!r b5efits1 rights1 or features t may be associat$ ) t b5efit2 & 7,b7 any co/-(-liv+ adju/m5ts or b5efit increases effective aft] ! date ( retirem5t4 7#e7 ,coord9ation ) contribution increases 7,a7 ,9 g5]al ,a realignm5t program may provide t "s or all ( ! b5efit modifications describ$ 9 ! program w only take effect if ! b>ga9+ p>ties fail to agree to specifi$ levels ( increases 9 contributions to ! plan1 effective z ( specifi$ dates4 7,b7 ,indep5d5t b5efit modifications ,if a realignm5t program adopts any *anges to ! b5efit =mula t are indep5d5t ( pot5tial contribution increases1 su* *anges %all take effect n lat] ?an #ahj days aft] ! fir/ day ( ! fir/ plan ye> t beg9s foll[+ ! adoption ( ! realignm5t program4 7,c7 ,conditional b5efit modifications ,if a realignm5t program adopts any *anges to ! b5efit =mula t take effect only if ! b>ga9+ p>ties fail to agree to contribution increases1 su* *anges %all take effect n lat] ?an ! fir/ day ( ! fir/ plan ye> beg9n+ aft] ! ?ird anniv]s>y ( ! date ( adoption ( ! realignm5t program4 7,d7 ,revocation ( c]ta9 b5efit modifications ,b5efit modifications describ$ 9 subp>agraph 7,c7 may be revok$1 9 :ole or 9 "p1 & retroactively or prospectively1 :5 contributions to ! plan are increas$1 z specifi$ 9 ! realignm5t program1 includ+ any am5dm5ts !reto4 ,! prec$+ s5t5ce %all n apply unless ! contribution increases are to be effective n lat] ?an ! fif? anniv]s>y ( ! fir/ day ( ! fir/ plan ye> t beg9s aft] ! adoption ( ! realignm5t program4 7b7 ,notice 7#a7 ,9 g5]al ,9 any case 9 :i* x is c]tifi$ "u section #hjb7;a7 t ! project$ fund$ ratio is less ?an #abj p]c5t1 ! plan sponsor %all1 n lat] ?an #cj days aft] ! date ( ! c]tification1 provide notification ( ! curr5t & project$ fund$ ratios to ! p>ticipants & b5efici>ies1 ! b>ga9+ p>ties1 & ! ,secret>y4 ,su* notice %all include-- 7,a7 an explanation t contribution rate increases or b5efit r$uctions may be necess>y2 7,b7 a description ( ! types ( b5efits t might be r$uc$2 & 7,c7 an e/imate ( ! contribution increases & b5efit r$uctions t may be necess>y to a*ieve a project$ fund$ ratio ( #abj p]c5t4 7#b7 ,notice ( b5efit modifications 7,a7 ,9 ,g5]al ,no modifications may be made t r$uce ! rate ( future b5efit accrual or t r$uce core b5efits or adju/able b5efits unless notice ( su* r$uction has be5 giv5 at lea/ #ahj days be=e ! g5]al effective date ( su* r$uction = all p>ticipants & b5efici>ies to-- 7i7 plan p>ticipants & b5efici>ies2 7ii7 ea* employ] :o has an obligation to contribute to ! composite plan2 & 7iii7 ea* employee organization :i*1 = purposes ( collective b>ga9+1 repres5ts plan p>ticipants employ$ by su* employ]s4 7,b7 ,cont5t ( ,notice ,! notice "u subp>agraph 7,a7 %all conta9-- 7i7 suffici5t in=mation to enable p>ticipants & b5efici>ies to und]/& ! effect ( any r$uction on _! b5efits1 includ+ an illu/ration ( any affect$ b5efit or subsidy1 on an annual or mon?ly basis t a p>ticipant or b5efici>y w\ld o!rwise h be5 eligible = z ( ! g5]al effective date describ$ 9 subp>agraph 7,a72 & 7ii7 in=mation z to ! rights & rem$ies ( plan p>ticipants & b5efici>ies z well z h[ to contact ! ,dep>tm5t ( ,labor = fur!r in=mation & assi/ance1 :]e appropriate4 7,c7 ,=m & ,mann] ,any notice "u subp>agraph 7,a7-- 7i7 %all be provid$ 9 a =m & mann] prescrib$ 9 regulations ( ! ,secret>y ( ,labor2 7ii7 %all be writt5 9 a mann] s z to be und]/ood by ! av]age plan p>ticipant4 7#c7 ,model notices ,! ,secret>y %all-- 7,a7 prescribe model notices t ! plan sponsor ( a composite plan may use to satisfy ! notice requirem5ts "u ?is subsection2 & 7,b7 by regulation enum]ate any details relat$ to ! elem5ts li/$ 9 p>agraph 7#a7 t any notice "u ?is subsection mu/ include4 7#d7 ,deliv]y me?od ,any notice "u ?is "p %all be provid$ 9 writ+ & may also be provid$ 9 electronic =m to ! ext5t t ! =m is reasonably accessible to p]sons to :om ! notice is provid$4 #hjd4 ,limitation on increas+ b5efits 7a7 ,level ( curr5t fund$ ratios ,except z provid$ 9 subsections 7c71 7d71 & 7e71 no plan am5dm5t increas+ b5efits or e/abli%+ new b5efits "u a composite plan may be adopt$ = a plan ye> unless-- 7#a7 ! plan's curr5t fund$ ratio is at lea/ #aaj p]c5t 7)\t reg>d to ! b5efit increase or new b5efits72 7#b7 tak+ ! b5efit increase or new b5efits into acc\nt1 ! curr5t fund$ ratio is at lea/ #ajj p]c5t & ! project$ fund$ ratio = ! curr5t plan ye> is at lea/ #abj p]c5t2 7#c7 9 any case 9 :i*1 aft] tak+ ! b5efit increase or new b5efits into acc\nt1 ! curr5t fund$ ratio is less ?an #adj p]c5t & ! project$ fund$ ratio is less ?an #adj p]c5t1 ! b5efit increase or new b5efits are project$ by ! plan actu>y to increase ! pres5t value ( ! plan's liabilities = ! plan ye> by n m ?an #c p]c5t2 & 7#d7 expect$ contributions = ! curr5t plan ye> are at lea/ #abj p]c5t ( normal co/ = ! plan ye>1 det]m9$ us+ ! unit cr$it fund+ me?od & treat+ ! b5efit increase or new b5efits z 9 effect = ! entire plan ye>4 7b7 ,additional requirem5ts :]e core b5efits r$uc$ ,if a plan has be5 am5d$ to r$uce core b5efits pursuant to a realignm5t program "u section #hjc7;a77#b77;,d71 su* plan may n be subsequ5tly am5d$ to increase core b5efits unless ! am5dm5t-- 7#a7 increases ! level ( future b5efit paym5ts only2 & 7#b7 provides = an equitable di/ribution ( b5efit increases across ! p>ticipant & b5efici>y population1 tak+ into acc\nt ! ext5t to :i* ! b5efits ( p>ticipants 7 previ\sly r$uc$ pursuant to su* realignm5t program4 7c7 ,exception ,to comply ) applicable law ,subsection 7a7 %all n apply 9 connection ) a plan am5dm5t if ! am5dm5t is requir$ z a condition ( qualification "u "p ,i ( sub*apt] ,d ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf or to comply ) o!r applicable law4 7d7 ,exception :]e maximum d$uctible limit applies ,subsection 7a7 %all n apply 9 connection ) a plan am5dm5t if & to ! ext5t t contributions to ! composite plan w\ld n be d$uctible = ! plan ye> "u section #djd7;a77#a77;,e7 ( ! ,int]nal ,rev5ue ,code ( #aihf if ! plan am5dm5t is n adopt$4 7e7 ,exception = c]ta9 b5efit modifications ,subsection 7a7 %all n apply 9 connection ) a plan am5dm5t "u section #hjc7;a77#e77;,c71 reg>d+ conditional b5efit modifications4 7f7 ,treatm5t ( plan am5dm5ts ,= purposes ( ?is section-- 7#a7 if two or m plan am5dm5ts increas+ b5efits or e/abli%+ new b5efits are adopt$ 9 a plan ye>1 su* am5dm5ts %all be treat$ z a s+le am5dm5t adopt$ on ! la/ day ( ! plan ye>2 7#b7 all b5efit increases & new b5efits adopt$ 9 a s+le am5dm5t are treat$ z a s+le b5efit increase1 irrespective ( :e!r ! increases & new b5efits take effect 9 m ?an "o plan ye>2 & 7#c7 increases 9 contributions or decreases 9 plan liabilities :i* are s*$ul$ to take effect 9 future plan ye>s may be tak5 into acc\nt 9 connection ) a plan am5dm5t if !y h be5 agre$ to 9 writ+ or o!rwise =maliz$ by ! date ! plan am5dm5t is adopt$4 #hje4 ,composite plan re/rictions to pres]ve legacy plan fund+ 7a7 ,treatm5t z a legacy plan 7#a7 ,9 g5]al ,= purposes ( ?is "p & p>ts #b & #c1 a def9$ b5efit plan %all be treat$ z a legacy plan ) respect to ! composite plan "u :i* ! employees :o 7 eligible to accrue a b5efit "u ! def9$ b5efit plan become eligible to accrue a b5efit "u su* composite plan4 7#b7 ,compon5t plans ,9 any case 9 :i* a def9$ b5efit plan is am5d$ to add a composite plan compon5t pursuant to section #hja7;b71 p>agraph 7#a7 %all be appli$ by sub/itut+ def9$ b5efit compon5t = def9$ b5efit plan & composite plan compon5t = composite plan4 7#c7 ,eligible to accrue a b5efit ,= purposes ( p>agraph 7#a71 an employee is consid]$ eligible to accrue a b5efit "u a composite plan z ( ! fir/ day 9 :i* ! employee completes an h\r ( s]vice "u a collective b>ga9+ agreem5t t provides = contributions to & accruals "u ! composite plan 9 lieu ( accruals "u ! legacy plan4 7#d7 ,collective b>ga9+ agreem5t ,z us$ 9 ?is "p1 ! t]m collective b>ga9+ agreem5t includes any agreem5t "u :i* an employ] has an obligation to contribute to a plan4 7#e7 ,o!r t]ms ,any t]m us$ 9 ?is "p :i* is n def9$ 9 ?is "p & :i* is also us$ 9 section #cje %all h ! same mean+ provid$ su* t]m 9 su* section4 7b7 ,re/rictions on acceptance by composite plan ( agreem5ts & contributions 7#a7 ,9 g5]al ,! plan sponsor ( a composite plan %all n accept or recognize a collective b>ga9+ agreem5t 7or any modification to su* agreem5t71 & no contributions may be accept$ & no b5efits may be accru$ or o!rwise e>n$ "u ! agreem5t-- 7,a7 9 any case 9 :i* ! plan actu>y ( any def9$ b5efit plan t w\ld be treat$ z a legacy plan ) respect to su* composite plan has c]tifi$ "u section #cje7;b77#c7 t su* def9$ b5efit plan is or w be 9 critical /atus = ! plan ye> 9 :i* su* agreem5t w\ld take effect or = any ( ! succe$+ #e plan ye>s2 & 7,b7 unless ! agreem5t requires ea* employ] :o is a p>ty to su* agreem5t1 includ+ employ]s ^: employees are n p>ticipants 9 ! legacy plan1 to provide contributions to ! legacy plan ) respect to su* composite plan 9 a mann] t satisfies ! transition contribution requirem5ts ( subsection 7d74 7#b7 ,notice ,n lat] ?an #cj days aft] a det]m9ation by a plan sponsor ( a composite plan t an agreem5t fails to satisfy ! requirem5ts describ$ 9 p>agraph 7#a71 ! plan sponsor %all provide notification ( su* failure & ! reasons = su* det]m9ation-- 7,a7 to ! p>ties to ! agreem5t2 7,b7 to active p>ticipants ( ! composite plan :o h ceas$ to accrue or o!rwise e>n b5efits ) respect to s]vice ) an employ] pursuant to p>agraph 7#a72 & 7,c7 to ! ,secret>y1 ! ,secret>y ( ! ,treasury1 & ! ,p5sion ,b5efit ,gu>anty ,corporation4 7#c7 ,limitation on retroactive effect ,?is subsection %all n apply to b5efits accru$ be=e ! date on :i* notice is provid$ "u p>agraph 7#b74 7c7 ,re/riction on accrual ( b5efits "u a composite plan 7#a7 ,9 g5]al ,9 any case 9 :i* an employ]1 "u a collective b>ga9+ agreem5t ent]$ into aft] ,febru>y #e1 #bjah1 ceases to h an obligation to contribute to a multiemploy] def9$ b5efit plan1 no employees employ$ by ! employ] may accrue or o!rwise e>n b5efits "u any composite plan1 ) respect to s]vice ) t employ]1 = a #fj-mon? p]iod beg9n+ on ! date on :i* ! employ] ent]$ into su* collective b>ga9+ agreem5t4 7#b7 ,notice ( cessation ( obligation ,)9 #cj days ( det]m9+ t an employ] has ceas$ to h an obligation to contribute to a legacy plan ) respect to employees employ$ by an employ] t is or w be contribut+ to a composite plan ) respect to s]vice ( su* employees1 ! plan sponsor ( ! legacy plan %all notify ! plan sponsor ( ! composite plan ( t cessation4 7#c7 ,notice ( cessation ( accruals ,n lat] ?an #cj days aft] det]m9+ t an employ] has ceas$ to h an obligation to contribute to a legacy plan1 ! plan sponsor ( ! composite plan %all notify ! b>ga9+ p>ties1 ! active p>ticipants affect$ by ! cessation ( accruals1 ! ,secret>y1 ! ,secret>y ( ! ,treasury1 & ! ,p5sion ,b5efit ,gu>anty ,corporation ( ! cessation ( accruals1 ! p]iod dur+ :i* su* cessation is 9 effect1 & ! reasons !re=4 7#d7 ,limitation on retroactive effect ,?is subsection %all n apply to b5efits accru$ be=e ! date on :i* notice is provid$ "u p>agraph 7#c74 7d7 ,transition contribution requirem5ts 7#a7 ,9 g5]al ,a collective b>ga9+ agreem5t satisfies ! transition contribution requirem5ts ( ?is subsection if ! agreem5t-- 7,a7 au?orizes paym5t ( contributions to a legacy plan at a rate or rates equal to or great] ?an ! transition contribution rate e/abli%$ by ! legacy plan "u p>agraph 7#b72 & 7,b7 does n provide =-- 7i7 a susp5sion ( contributions to ! legacy plan ) respect to any p]iod ( s]vice2 or 7ii7 any new direct or indirect exclusion ( y\ng] or newly hir$ employees ( ! employ] f be+ tak5 into acc\nt 9 det]m9+ contributions ow$ to ! legacy plan4 7#b7 ,transition contribution rate 7,a7 ,9 g5]al ,! transition contribution rate = a plan ye> is ! contribution rate t1 z c]tifi$ by ! actu>y ( ! legacy plan 9 accordance ) ! pr9ciples 9 section #cje7;b77#c77;,b71 is reasonably expect$ to be adequate-- 7i7 to fund ! normal co/ = ! plan ye>2 7ii7 to amortize ! plan's unfund$ liabilities 9 level annual in/allm5ts ov] #be ye>s1 beg9n+ ) ! plan ye> 9 :i* ! transition contribution rate is fir/ e/abli%$2 & 7iii7 to amortize any subsequ5t *anges 9 ! legacy plan's unfund$ liability due to exp]i5ce ga9s or losses 7includ+ inve/m5t ga9s or losses1 ga9s or losses due to contributions great] or less ?an ! contributions made "u ! prior transition contribution rate1 & o!r actu>ial ga9s or losses71 *anges 9 actu>ial assumptions1 *anges to ! legacy plan's b5efits1 or *anges 9 fund+ me?od ov] a p]iod ( #ae plan ye>s beg9n+ ) ! plan ye> 9 :i* su* *ange 9 unfund$ liability is incurr$4 ,! transition contribution rate = any plan ye> may n be less ?an ! transition contribution rate = ! plan ye> 9 :i* su* rate is fir/ e/abli%$4 7,b7 ,multiple rates ,if diff]5t rates ( contribution are payable to ! legacy plan by diff]5t employ]s or = diff]5t classes ( employees1 ! c]tification %all specify a transition contribution rate = ea* su* employ]4 7,c7 ,rate applicable to employ] 7i7 ,9 g5]al ,except z provid$ by clause 7ii71 ! transition contribution rate applicable to an employ] = a plan ye> is ! rate 9 effect = ! plan ye> ( ! legacy plan t comm5ces on or aft] #ahj days be=e ! e>li] (-- 7,i7 ! effective date ( ! collective b>ga9+ agreem5t pursuant to :i* ! employ] contributes to ! legacy plan2 or 7,,ii7 #e ye>s aft] ! la/ plan ye> = :i* ! transition contribution rate applicable to ! employ] 0 e/abli%$ or updat$4 7ii7 ,exception ,! transition contribution rate applicable to an employ] = ! fir/ plan ye> beg9n+ on or aft] ! comm5cem5t ( ! employ]'s obligation to contribute to ! composite plan is ! rate 9 effect = ! plan ye> ( ! legacy plan t comm5ces on or aft] #ahj days be=e su* fir/ plan ye>4 7,d7 ,effect ( legacy plan f9ancial circum/ances ,if ! plan actu>y ( ! legacy plan has c]tifi$ "u section #cje t ! plan is 9 endang]$ or critical /atus = a plan ye>1 ! transition contribution rate = ! foll[+ plan ye> is ! rate det]m9$ ) respect to ! employ] "u ! legacy plan's fund+ improvem5t or rehabilitation plan "u section #cje1 if great] ?an ! rate o!rwise det]m9$1 b 9 no ev5t great] ?an #ge p]c5t ( ! sum ( ! contribution rates applicable to ! legacy plan & ! composite plan = ! plan ye>4 7,e7 ,o!r actu>ial assumptions & me?ods ,except z provid$ 9 subp>agraph 7,a71 ! det]m9ation ( ! transition contribution rate = a plan ye> %all be bas$ on actu>ial assumptions & me?ods consi/5t ) ! m9imum fund+ det]m9ations made "u section #cjd 7or1 if applicable1 section #cje7 ) respect to ! legacy plan = ! plan ye>4 7,f7 ,adju/m5ts 9 rate ,! plan sponsor ( a legacy plan f "t to "t may adju/ ! transition contribution rate or rates applicable to an employ] "u ?is p>agraph by increas+ "s rates & decreas+ o!rs if ! actu>y c]tifies t su* adju/$ rates 9 comb9ation w produce project$ contribution income = ! plan ye> beg9n+ on or aft] ! date ( c]tification t is n less ?an w\ld be produc$ by ! transition contribution rates 9 effect at ! "t ( ! c]tification4 7,g7 ,notice ( transition contribution rate ,! plan sponsor ( a legacy plan %all provide notice to ! p>ties to collective b>ga9+ agreem5ts pursuant to :i* contributions are made to ! legacy plan ( *anges to ! transition contribution rate requirem5ts at lea/ #cj days be=e ! beg9n+ ( ! plan ye> = :i* ! rate is effective4 7,h7 ,notice to composite plan sponsor ,n lat] ?an #cj days aft] a det]m9ation by ! plan sponsor ( a legacy plan t a collective b>ga9+ agreem5t provides = a rate ( contributions t is bel[ ! transition contribution rate applicable to "o or m employ]s t are p>ties to ! collective b>ga9+ agreem5t1 ! plan sponsor ( ! legacy plan %all notify ! plan sponsor ( any composite plan "u :i* employees ( su* employ] w\ld o!rwise be eligible to accrue a b5efit4 7#c7 ,correction proc$ures ,pursuant to /&>ds prescrib$ by ! ,secret>y1 ! plan sponsor ( a composite plan %all adopt rules & proc$ures t give ! p>ties to ! collective b>ga9+ agreem5t notice ( ! failure ( su* agreem5t to satisfy ! transition contribution requirem5ts ( ?is subsection1 & a reasonable opportunity to correct su* failure1 n to exce$ #ahj days f ! date ( notice giv5 "u subsection 7b77#b74 7#d7 ,supplem5tal contributions ,a collective b>ga9+ agreem5t may provide = supplem5tal contributions to ! legacy plan = a plan ye> 9 excess ( ! transition contribution rate det]m9$ "u p>agraph 7#b71 reg>dless ( :e!r ! legacy plan is 9 endang]$ or critical /atus = su* plan ye>4 7e7 ,nonapplication ( composite plan re/rictions 7#a7 ,9 g5]al ,! provisions ( subsections 7a71 7b71 & 7c7 %all n apply ) respect to a collective b>ga9+ agreem5t1 to ! ext5t ! agreem5t1 or a pr$ecessor agreem5t1 provides or provid$ = contributions to a def9$ b5efit plan t is a legacy plan1 z ( ! fir/ day ( ! fir/ plan ye> foll[+ a plan ye> = :i* ! plan actu>y c]tifies t ! plan is fully fund$1 has be5 fully fund$ = at lea/ ?ree out ( ! imm$iately prec$+ #e plan ye>s1 & is project$ to rema9 fully fund$ = at lea/ ! foll[+ #d plan ye>s4 7#b7 ,det]m9ation ( fully fund$ ,a plan is fully fund$ = purposes ( p>agraph 7#a7 if1 z ( ! valuation date ( ! plan = a plan ye>1 ! value ( ! plan's assets equals or exce$s ! pres5t value ( ! plan's liabilities1 det]m9$ 9 accordance ) ! rules prescrib$ by ! ,p5sion ,b5efit ,gu>anty ,corporation "u sections #dbai7;c77#a77;,d7 & #dbha = multiemploy] plans t]m9at+ by mass )drawal1 z 9 effect = ! date ( ! det]m9ation1 except ! plan's reasonable assumption reg>d+ ! />t+ date ( b5efits may be us$4 7#c7 ,o!r applicable rules ,except z provid$ 9 p>agraph 7#b71 actu>ial det]m9ations & projections "u ?is section %all be bas$ on ! rules 9 section #cje7;b77#c7 & section #hjb7;b74 #hjf4 ,m]g]s & asset transf]s ( composite plans 7a7 ,9 g5]al ,assets & liabilities ( a composite plan may only be m]g$ )1 or transf]r$ to1 ano!r plan if-- 7#a7 ! o!r plan is a composite plan2 7#b7 ! plan or plans result+ f ! m]g] or transf] is a composite plan2 7#c7 no p>ticipant's accru$ b5efit or adju/able b5efit is l[] imm$iately aft] ! transaction ?an x 0 imm$iately be=e ! transaction2 & 7#d7 ! value ( ! assets transf]r$ 9 ! case ( a transf] reasonably reflects ! value ( ! am\nts contribut$ ) respect to ! p>ticipants ^: b5efits are be+ transf]r$1 adju/$ = allocable di/ributions1 inve/m5t ga9s & losses1 & adm9i/rative exp5ses4 7b7 ,legacy plan 7#a7 ,9 g5]al ,aft] a m]g] or transf] involv+ a composite plan1 ! legacy plan ) respect to an employ] t is obligat$ to contribute to ! result+ composite plan is ! legacy plan t appli$ to t employ] imm$iately be=e ! m]g] or transf]4 7#b7 ,multiple ,legacy ,plans ,if an employ] is obligat$ to contribute to m ?an "o legacy plan ) respect to employees eligible to accrue b5efits "u m ?an "o composite plan & !re is a m]g] or transf] ( su* legacy plans1 ! transition contribution rate applicable to ! legacy plan result+ f ! m]g] or transf] ) respect to t employ] %all be det]m9$ 9 accordance ) ! provisions ( section #hje7;d77#b77;,b74 4 7#b7 ,p5alties 7,a7 ,civil en=cem5t ( failure to comply ) realignm5t program ,section #ejb7;a7 ( su* ,act 7#bi ,u4,s4,c4 #aacb7;a77 is am5d$-- 7i7 9 p>agraph 7#aj71 by /rik+ or at ! end2 7ii7 9 p>agraph 7#aa71 by /rik+ ! p]iod at ! end & ins]t+ 2 or2 & 7iii7 by add+ at ! end ! foll[+3 7#ab7 9 ! case ( a composite plan requir$ to adopt a realignm5t program "u section #hjc1 if ! plan sponsor-- 7,a7 has n adopt$ a realignm5t program "u t section by ! deadl9e e/abli%$ 9 su* section2 or 7,b7 fails to update or comply ) ! t]ms ( ! realignm5t program 9 accordance ) ! requirem5ts ( su* section1 by ! ,secret>y1 by an employ] t has an obligation to contribute ) respect to ! composite plan1 or by an employee organization t repres5ts active p>ticipants 9 ! composite plan1 = an ord] compell+ ! plan sponsor to adopt a realignm5t program1 or to update or comply ) ! t]ms ( ! realignm5t program1 9 accordance ) ! requirem5ts ( su* section & ! realignm5t program4 4 7,b7 ,civil p5alties ,section #ejb7;c7 ( su* ,act 7#bi ,u4,s4,c4 #aacb7;c77 is am5d$-- 7i7 by mov+ p>agraphs 7#h71 7#aj71 & 7#ab7 ea* #b ems to ! left2 7ii7 by r$esignat+ p>agraphs 7#i7 ?r\gh 7#ab7 z p>agraphs 7#ab7 ?r\gh 7#ae71 respectively2 & 7iii7 by ins]t+ aft] p>agraph 7#h7 ! foll[+3 7#i7 ,! ,secret>y may assess aga9/ any plan sponsor ( a composite plan a civil p5alty ( n m ?an #a1ajj p] day = ea* violation by su* sponsor-- 7,a7 ( ! requirem5t "u section #hjb7;a7 on ! plan actu>y to c]tify ! plan's curr5t or project$ fund$ ratio by ! date specifi$ 9 su* subsection2 or 7,b7 ( ! requirem5t "u section #hjc to adopt a realignm5t program by ! deadl9e e/abli%$ 9 t section & to comply ) its t]ms4 7#aj7 7,a7 ,! ,secret>y may assess aga9/ any plan sponsor ( a composite plan a civil p5alty ( n m ?an #ajj p] day = ea* violation by su* sponsor ( ! requirem5t "u section #hjc7;b7 to provide notice z describ$ 9 su* section1 except t no p5alty may be assess$ 9 any case 9 :i* ! plan sponsor ex]cis$ reasonable dilig5ce to meet ! requirem5ts ( su* section &-- 7i7 ! plan sponsor did n "k t ! violation exi/$2 or 7ii7 ! plan sponsor provid$ su* notice dur+ ! #cj-;day p]iod beg9n+ on ! fir/ date on :i* ! plan sponsor knew1 or 9 ex]cis+ reasonable due dilig5ce %\ld h kn[n1 t su* violation exi/$4 7,b7 ,9 any case 9 :i* ! plan sponsor ex]cis$ reasonable dilig5ce to meet ! requirem5ts ( section #hjc7;b7-- 7i7 ! total p5alty assess$ "u ?is p>agraph aga9/ su* sponsor = a plan ye> may n exce$ #ejj1jjj2 & 7ii7 ! ,secret>y may waive "p or all ( su* p5alty to ! ext5t t ! paym5t ( su* p5alty w\ld be excessive or o!rwise inequitable relative to ! violation involv$4 7#aa7 ,! ,secret>y may assess aga9/ any plan sponsor ( a composite plan a civil p5alty ( n m ?an #ajj p] day = ea* violation by su* sponsor ( ! notice requirem5ts "u sections #hja7;b77#e7 & #hje7;b77#b74 4 7#c7 ,con=m+ am5dm5t ,! table ( cont5ts 9 section #a ( su* ,act 7#bi ,u4,s4,c4 #ajja note7 is am5d$ by ins]t+ aft] ! item relat+ to section #gcd ! foll[+3 ,"p #h--;,composite ,plans & ,legacy ,plans ,sec4 #hja4 ,composite plan def9$4 ,sec4 #hjb4 ,fund$ ratios2 actu>ial assumptions4 ,sec4 #hjc4 ,realignm5t program4 ,sec4 #hjd4 ,limitation on increas+ b5efits4 ,sec4 #hje4 ,composite plan re/rictions to pres]ve legacy plan fund+4 ,sec4 #hjf4 ,m]g]s & asset transf]s ( composite plans4 4 7b7 ,am5dm5t to ! ,int]nal ,rev5ue ,code ( #aihf 7#a7 ,9 g5]al ,"p ,,iii ( sub*apt] ,d ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+3 ,c ,composite ,plans & ,legacy ,plans ,sec4 #dcg4 ,composite plan def9$4 ,sec4 #dch4 ,fund$ ratios2 actu>ial assumptions4 ,sec4 #dci4 ,realignm5t program4 ,sec4 #ddj4 ,limitation on increas+ b5efits4 ,sec4 #ddj;,a4 ,composite plan re/rictions to pres]ve legacy plan fund+4 ,sec4 #ddj;,b4 ,m]g]s & asset transf]s ( composite plans4 #dcg4 ,composite plan def9$ 7a7 ,9 g5]al ,= purposes ( ?is title1 ! t]m composite plan means a p5sion plan-- 7#a7 :i* is a multiemploy] plan t is nei!r a def9$ b5efit plan nor a def9$ contribution plan1 7#b7 ! t]ms ( :i* provide t ! plan is a composite plan = purposes ( ?is title ) respect to :i* n m ?an "o multiemploy] def9$ b5efit plan is treat$ z a legacy plan )9 ! mean+ ( section #ddj;,a1 unless !re is m ?an "o legacy plan foll[+ a m]g] ( composite plans "u section #ddj;,b1 7#c7 :i* provides sy/ematically = ! paym5t ( b5efits-- 7,a7 objectively calculat$ pursuant to a =mula enum]at$ 9 ! plan docum5t ) respect to plan p>ticipants aft] retirem5t1 = life1 & 7,b7 9 ! =m ( life annuities1 except = b5efits :i* "u section #daa7;a77#aa7 may be imm$iately di/ribut$ )\t ! cons5t ( ! p>ticipant1 7#d7 = :i* ! plan contributions = ! fir/ plan ye> are at lea/ #abj p]c5t ( ! normal co/ = ! plan ye>1 7#e7 :i* requires-- 7,a7 an annual valuation ( ! liability ( ! plan z ( a date )9 ! plan ye> to :i* ! valuation ref]s or )9 "o mon? prior to ! beg9n+ ( su* ye>1 7,b7 an annual actu>ial det]m9ation ( ! plan's curr5t fund$ ratio & project$ fund$ ratio "u section #dch7;a71 7,c7 corrective action ?r\gh a realignm5t program pursuant to section #dci :5ev] ! plan's project$ fund$ ratio is bel[ #abj p]c5t = ! plan ye>1 & 7,d7 an annual notification to ea* p>ticipant describ+ ! p>ticipant's b5efits "u ! plan & expla9+ t su* b5efits may be subject to r$uction "u a realignm5t program pursuant to section #dci bas$ on ! plan's fund$ /atus 9 future plan ye>s1 & 7#f7 ! bo>d ( tru/ees ( :i* includes at lea/ "o retiree or b5efici>y 9 pay /atus dur+ ea* plan ye> foll[+ ! fir/ plan ye> 9 :i* at lea/ #e p]c5t ( ! p>ticipants 9 ! plan are retirees or b5efici>ies 9 pay /atus4 7b7 ,transition f a multiemploy] def9$ b5efit plan 7#a7 ,9 g5]al ,! plan sponsor ( a def9$ b5efit plan t is a multiemploy] plan may1 subject to p>agraph 7#b71 am5d ! plan to incorporate ! features ( a composite plan z a compon5t ( ! multiemploy] plan sep>ate f ! def9$ b5efit plan compon5t1 except 9 ! case ( a def9$ b5efit plan = :i* ! plan actu>y has c]tifi$ "u section #dcb7;b77#c7 t ! plan is or w be 9 critical /atus = ! plan ye> 9 :i* su* am5dm5t w\ld become effective or = any ( ! succe$+ #e plan ye>s4 7#b7 ,requirem5ts ,any am5dm5t pursuant to p>agraph 7#a7 to incorporate ! features ( a composite plan z a compon5t ( a multiemploy] plan %all-- 7,a7 apply ) respect to all collective b>ga9+ agreem5ts provid+ = contributions to ! multiemploy] plan on or aft] ! effective date ( ! am5dm5t1 7,b7 apply ) respect to all p>ticipants 9 ! multiemploy] plan = :om contributions are made to ! multiemploy] plan on or aft] ! effective date ( ! am5dm5t1 7,c7 specify t ! effective date ( ! am5dm5t is-- 7i7 ! fir/ day ( a specifi$ plan ye> foll[+ ! date ( ! adoption ( ! am5dm5t1 except t ! plan sponsor may alt]natively provide = a sep>ate effective date ) respect to ea* collective b>ga9+ agreem5t "u :i* contributions to ! multiemploy] plan are requir$1 :i* %all occur on ! fir/ day ( ! fir/ plan ye> beg9n+ aft] ! t]m9ation1 or if e>li]1 ! re-op5+1 ( ea* su* agreem5t1 or su* e>li] date z ! p>ties to ! agreem5t & ! plan sponsor ( ! multiemploy] plan %all agree to1 & 7ii7 n lat] ?an ! fir/ day ( ! fif? plan ye> beg9n+ on or aft] ! date ( ! adoption ( ! am5dm5t1 7,d7 specify t1 z ( ! am5dm5t's effective date1 no fur!r b5efits %all accrue "u ! def9$ b5efit compon5t ( ! multiemploy] plan1 & 7,e7 specify t1 z ( ! am5dm5t's effective date1 ! plan sponsor ( ! multiemploy] plan %all be ! plan sponsor ( bo? ! composite plan compon5t & ! def9$ b5efit plan compon5t ( ! plan4 7#c7 ,special rules ,if a multiemploy] plan is am5d$ pursuant to p>agraph 7#a7-- 7,a7 ! requirem5ts ( ?is title %all be appli$ to ! composite plan compon5t & ! def9$ b5efit plan compon5t ( ! multiemploy] plan z if ea* su* compon5t 7 ma9ta9$ z a sep>ate plan1 & 7,b7 ! assets ( ! composite plan compon5t & ! def9$ b5efit plan compon5t ( ! plan %all be held 9 a s+le tru/ =m+ "p ( ! plan "u :i* ! tru/ in/rum5t expressly provides-- 7i7 = sep>ate acc\nts 7& appropriate records7 to be ma9ta9$ to reflect ! int]e/ :i* ea* ( ! plan compon5ts has 9 ! tru/1 includ+ sep>ate acc\nt+ = additions to ! tru/ = ! b5efit ( ea* plan compon5t1 disbursem5ts made f ea* plan compon5t's acc\nt 9 ! tru/1 inve/m5t exp]i5ce ( ! tru/ allocable to t acc\nt1 & adm9i/rative exp5ses 7:e!r direct exp5ses or %>$ exp5ses allocat$ proportionally71 & p]mits1 b does n require1 ! pool+ ( "s or all ( ! assets ( ! two plan compon5ts = inve/m5t purposes1 & 7ii7 t ! assets ( ea* ( ! two plan compon5ts %all be held1 inve/$1 re9ve/$1 manag$1 adm9i/]$ & di/ribut$ = ! exclusive b5efit ( ! p>ticipants & b5efici>ies ( ea* su* plan compon5t1 & 9 no ev5t %all ! assets ( "o ( ! plan compon5ts be available to pay b5efits due "u ! o!r plan compon5t4 7#d7 ,n a t]m9ation ev5t ,not)/&+ section #djda;,a ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd1 an am5dm5t pursuant to p>agraph 7#a7 to incorporate ! features ( a composite plan z a compon5t ( a multiemploy] plan does n con/itute t]m9ation ( ! multiemploy] plan4 7#e7 ,notice to ! ,secret>y 7,a7 ,notice ,! plan sponsor ( a composite plan %all provide notice to ! ,secret>y ( ! int5t to e/abli% ! composite plan 7or1 9 ! case ( a composite plan incorporat$ z a compon5t ( a multiemploy] plan z describ$ 9 p>agraph 7#a71 ! int5t to am5d ! multiemploy] plan to incorporate su* composite plan7 at lea/ #cj days prior to ! effective date ( su* e/abli%m5t or am5dm5t4 7,b7 ,c]tification ,9 ! case ( a composite plan incorporat$ z a compon5t ( a multiemploy] plan z describ$ 9 p>agraph 7#a71 su* notice %all include a c]tification by ! plan actu>y "u section #dcb7;b77#c7 t ! effective date ( ! am5dm5t occurs 9 a plan ye> = :i* ! multiemploy] plan is n 9 critical /atus = t plan ye> & any ( ! succe$+ #e plan ye>s4 7#f7 ,ref]5ces to composite plan compon5t ,z us$ 9 ?is subp>t1 ! t]m composite plan includes a composite plan compon5t add$ to a def9$ b5efit plan pursuant to p>agraph 7#a74 7#g7 ,rule ( con/ruction ,p>agraph 7#b77;,a7 %all n be con/ru$ z prev5t+ ! plan sponsor ( a multiemploy] plan f adopt+ an am5dm5t pursuant to p>agraph 7#a7 because "s collective b>ga9+ agreem5ts are am5d$ to cease any cov]$ employ]'s obligation to contribute to ! multiemploy] plan be=e or aft] ! plan am5dm5t is effective4 ,p>agraph 7#b77;,b7 %all n be con/ru$ z prev5t+ ! plan sponsor ( a multiemploy] plan f adopt+ an am5dm5t pursuant to p>agraph 7#a7 because "s p>ticipants cease to h contributions made to ! multiemploy] plan on _! behalf be=e or aft] ! plan am5dm5t is effective4 7c7 ,coord9ation ) fund+ rules ,except z o!rwise provid$ 9 ?is title1 sections #dab1 #dca1 & #dcb %all n apply to a composite plan4 7d7 ,treatm5t ( a composite plan ,= purposes ( ?is title 7o!r ?an sections #dab & #dah;,e71 a composite plan %all be treat$ z if x 7 a def9$ b5efit plan unless a diff]5t treatm5t is provid$ = "u applicable law4 #dch4 ,fund$ ratios2 actu>ial assumptions 7a7 ,c]tification ( fund$ ratios 7#a7 ,9 g5]al ,n lat] ?an ! "o-hundr$ tw5tie? day ( ea* plan ye> ( a composite plan1 ! plan actu>y ( ! composite plan %all c]tify to ! ,secret>y1 ! ,secret>y ( ,labor1 & ! plan sponsor ! plan's curr5t fund$ ratio & project$ fund$ ratio = ! plan ye>4 7#b7 ,det]m9ation ( curr5t fund$ ratio & project$ fund$ ratio ,= purposes ( ?is section-- 7,a7 ,curr5t fund$ ratio ,! curr5t fund$ ratio is ! ratio 7express$ z a p]c5tage7 (-- 7i7 ! value ( ! plan's assets z ( ! fir/ day ( ! plan ye>1 to 7ii7 ! plan actu>y's be/ e/imate ( ! pres5t value ( ! plan liabilities z ( ! fir/ day ( ! plan ye>4 7,b7 ,project$ fund$ ratio ,! project$ fund$ ratio is ! curr5t fund$ ratio project$ to ! fir/ day ( ! fifte5? plan ye> foll[+ ! plan ye> = :i* ! det]m9ation is be+ made4 7#c7 ,consid]ation ( contribution rate increases ,= purposes ( projections "u ?is subsection1 ! plan sponsor may anticipate contribution rate increases beyond ! t]m ( ! curr5t collective b>ga9+ agreem5t & any agre$-to supplem5ts1 up to a maximum ( #b4e p]c5t p] ye>1 comp\nd$ annually1 unless x w\ld be unreasonable "u ! circum/ances to assume t contributions w\ld increase by t am\nt4 7b7 ,actu>ial assumptions & me?ods ,= purposes ( ?is "p-- 7#a7 ,9 g5]al ,all co/s1 liabilities1 rates ( int]e/1 & o!r factors "u ! plan %all be det]m9$ = a plan ye> on ! basis ( actu>ial assumptions & me?ods-- 7,a7 ea* ( :i* is reasonable 7tak+ into acc\nt ! exp]i5ce ( ! plan & reasonable expectations71 7,b7 :i*1 9 comb9ation1 (f] ! actu>y's be/ e/imate ( anticipat$ exp]i5ce "u ! plan1 & 7,c7 ) respect to :i* any *ange f ! actu>ial assumptions & me?ods us$ 9 ! previ\s plan ye> %all be c]tifi$ by ! plan actu>y & ! actu>ial rationale = su* *ange provid$ 9 ! annual report requir$ by section #fjeh4 7#b7 ,fair m>ket value ( assets ,! value ( ! plan's assets %all be tak5 into acc\nt on ! basis ( _! fair m>ket value4 7#c7 ,det]m9ation ( normal co/ & plan liabilities ,a plan's normal co/ & liabilities %all be bas$ on ! mo/ rec5t actu>ial valuation requir$ "u section #dcg7;a77#e77;,a7 & ! unit cr$it fund+ me?od4 7#d7 ,"t :5 c]ta9 contributions deem$ made ,any contributions = a plan ye> made by an employ] aft] ! la/ day ( su* plan ye>1 b n lat] ?an two & "o-half mon?s aft] su* day1 %all be deem$ to h be5 made on su* la/ day4 ,= purposes ( ?is p>agraph1 su* two & "o-half mon? p]iod may be ext5d$ = n m ?an six mon?s "u regulations prescrib$ by ! ,secret>y4 7#e7 ,additional actu>ial assumptions ,except :]e o!rwise provid$ 9 ?is subp>t1 ! provisions ( section #dcb7;b77#c77;,b7 %all apply to any det]m9ation or projection "u ?is subp>t4 #dci4 ,realignm5t program 7a7 ,realignm5t program 7#a7 ,adoption ,9 any case 9 :i* ! plan actu>y c]tifies "u section #dch7;a7 t ! plan's project$ fund$ ratio is bel[ #abj p]c5t = ! plan ye>1 ! plan sponsor %all adopt a realignm5t program "u p>agraph 7#b7 n lat] ?an #baj days aft] ! due date ( ! c]tification requir$ "u section #dch7;a74 ,! plan sponsor %all adopt an updat$ realignm5t program = ea* succe$+ plan ye> = :i* a c]tification describ$ 9 ! prec$+ s5t5ce is made4 7#b7 ,cont5t ( realignm5t program 7,a7 ,9 g5]al ,a realignm5t program adopt$ "u ?is p>agraph is a writt5 program :i* consi/s ( all reasonable measures1 includ+ options or a range ( options to be und]tak5 by ! plan sponsor or propos$ to ! b>ga9+ p>ties1 =mulat$1 bas$ on reasonably anticipat$ exp]i5ce & reasonable actu>ial assumptions1 to enable ! plan to a*ieve a project$ fund$ ratio ( at lea/ #abj p]c5t = ! foll[+ plan ye>4 7,b7 ,initial program elem5ts ,reasonable measures "u a realignm5t program describ$ 9 subp>agraph 7,a7 may include any ( ! foll[+3 7i7 ,propos$ contribution increases4 7ii7 ,a r$uction 9 ! rate ( future b5efit accruals1 s long z ! result+ rate %all n be less ?an #a p]c5t ( ! contributions on :i* b5efits are bas$ z ( ! />t ( ! plan ye> 7or ! equival5t /&>d accrual rate z describ$ 9 section #dcb7;e77#f774 7iii7 ,a modification or elim9ation ( adju/able b5efits ( p>ticipants t are n 9 pay /atus be=e ! date ( ! notice requir$ "u subsection 7b77#a74 7iv7 ,any o!r legally available measures n specifically describ$ 9 ?is subp>agraph or subp>agraph 7,c7 or 7,d7 t ! plan sponsor det]m9es are reasonable4 7,c7 ,additional program elem5ts ,if ! plan sponsor has det]m9$ t all reasonable measures available "u subp>agraph 7,b7 w n enable ! plan to a*ieve a project$ fund$ ratio ( at lea/ #abj p]c5t ! foll[+ plan ye>1 su* reasonable measures may also include-- 7i7 a r$uction ( accru$ b5efits t are n 9 pay /atus by ! date ( ! notice requir$ "u subsection 7b77#a71 or 7ii7 a r$uction ( any b5efits ( p>ticipants t are 9 pay /atus be=e ! date ( ! notice requir$ "u subsection 7b77#a7 o!r ?an core b5efits z def9$ 9 p>agraph 7#d74 7,d7 ,additional r$uctions ,9 ! case ( a composite plan = :i* ! plan sponsor has det]m9$ t all reasonable measures available "u subp>agraphs 7,b7 & 7,c7 w n enable ! plan to a*ieve a project$ fund$ ratio ( at lea/ #abj p]c5t = ! foll[+ plan ye>1 su* reasonable measures may also include-- 7i7 a fur!r r$uction 9 ! rate ( future b5efit accruals )\t reg>d to ! limitation applicable "u subp>agraph 7,b77ii71 or 7ii7 a r$uction ( core b5efits1 provid$ t su* r$uctions %all be equitably di/ribut$ across ! p>ticipant & b5efici>y population1 tak+ into acc\nt factors1 ) respect to p>ticipants & b5efici>ies & _! b5efits1 t may include "o or m ( ! factors li/$ 9 subclauses 7,i7 ?r\gh 7,x7 ( section #dcb7;e77#i77;,d77vi71 to ! ext5t necess>y to enable ! plan to a*ieve a project$ fund$ ratio ( at lea/ #abj p]c5t = ! foll[+ plan ye>1 or at ! election ( ! plan sponsor1 a project$ fund$ ratio ( at lea/ #ajj p]c5t = ! foll[+ plan ye> & a curr5t fund$ ratio ( at lea/ #ij p]c5t4 7#c7 ,adju/able b5efit def9$ ,= purposes ( ?is subp>t1 ! t]m adju/able b5efit means-- 7,a7 b5efits1 rights1 & features "u ! plan1 includ+ po/-retirem5t dea? b5efits1 #fj-mon? gu>antees1 disability b5efits n yet 9 pay /atus1 & simil> b5efits1 7,b7 any e>ly retirem5t b5efit or retirem5t-type subsidy 7)9 ! mean+ ( section #daa7;d77#f77;,b77i77 & any b5efit paym5t option 7o!r ?an ! qualifi$ jo9t & survivor annuity71 & 7,c7 b5efit increases t 7 adopt$ 7or1 if lat]1 took effect7 less ?an #fj mon?s be=e ! fir/ day su* realignm5t program took effect4 7#d7 ,core b5efit def9$ ,= purposes ( ?is subp>t1 ! t]m core b5efit means a p>ticipant's accru$ b5efit payable 9 ! normal =m ( an annuity comm5c+ at normal retirem5t age1 det]m9$ )\t reg>d to-- 7,a7 any e>ly retirem5t b5efits1 retirem5t-type subsidies1 or o!r b5efits1 rights1 or features t may be associat$ ) t b5efit1 & 7,b7 any co/-(-liv+ adju/m5ts or b5efit increases effective aft] ! date ( retirem5t4 7#e7 ,coord9ation ) contribution increases 7,a7 ,9 g5]al ,a realignm5t program may provide t "s or all ( ! b5efit modifications describ$ 9 ! program w only take effect if ! b>ga9+ p>ties fail to agree to specifi$ levels ( increases 9 contributions to ! plan1 effective z ( specifi$ dates4 7,b7 ,indep5d5t b5efit modifications ,if a realignm5t program adopts any *anges to ! b5efit =mula t are indep5d5t ( pot5tial contribution increases1 su* *anges %all take effect n lat] ?an #ahj days foll[+ ! fir/ day ( ! fir/ plan ye> t beg9s foll[+ ! adoption ( ! realignm5t program4 7,c7 ,conditional b5efit modifications ,if a realignm5t program adopts any *anges to ! b5efit =mula t take effect only if ! b>ga9+ p>ties fail to agree to contribution increases1 su* *anges %all take effect n lat] ?an ! fir/ day ( ! fir/ plan ye> beg9n+ aft] ! ?ird anniv]s>y ( ! date ( adoption ( ! realignm5t program4 7,d7 ,revocation ( c]ta9 b5efit modifications ,b5efit modifications describ$ 9 p>agraph 7#c7 may be revok$1 9 :ole or 9 "p1 & retroactively or prospectively1 :5 contributions to ! plan are increas$1 z specifi$ 9 ! realignm5t program1 includ+ any am5dm5ts !reto4 ,! prec$+ s5t5ce %all n apply unless ! contribution increases are to be effective n lat] ?an ! fif? anniv]s>y ( ! fir/ day ( ! fir/ plan ye> t beg9s aft] ! adoption ( ! realignm5t program4 7b7 ,notice 7#a7 ,9 g5]al ,9 any case 9 :i* x is c]tifi$ "u section #dch7;a7 t ! project$ fund$ ratio is less ?an #abj p]c5t1 ! plan sponsor %all1 n lat] ?an #cj days aft] ! date ( ! c]tification1 provide notification ( ! curr5t & project$ fund$ ratios to ! p>ticipants & b5efici>ies1 ! b>ga9+ p>ties1 & ! ,secret>y4 ,su* notice %all include-- 7,a7 an explanation t contribution rate increases or b5efit r$uctions may be necess>y1 7,b7 a description ( ! types ( b5efits t might be r$uc$1 & 7,c7 an e/imate ( ! contribution increases & b5efit r$uctions t may be necess>y to a*ieve a project$ fund$ ratio ( #abj p]c5t4 7#b7 ,notice ( b5efit modifications 7,a7 ,9 g5]al ,no modifications may be made t r$uce ! rate ( future b5efit accrual or t r$uce core b5efits or adju/able b5efits unless notice ( su* r$uction has be5 giv5 at lea/ #ahj days be=e ! g5]al effective date ( su* r$uction = all p>ticipants & b5efici>ies to-- 7i7 plan p>ticipants & b5efici>ies1 7ii7 ea* employ] :o has an obligation to contribute to ! composite plan1 & 7iii7 ea* employee organization :i*1 = purposes ( collective b>ga9+1 repres5ts plan p>ticipants employ$ by su* employ]s4 7,b7 ,cont5t ( ,notice ,! notice "u subp>agraph 7,a7 %all conta9-- 7i7 suffici5t in=mation to enable p>ticipants & b5efici>ies to und]/& ! effect ( any r$uction on _! b5efits1 includ+ an illu/ration ( any affect$ b5efit or subsidy1 on an annual or mon?ly basis t a p>ticipant or b5efici>y w\ld o!rwise h be5 eligible = z ( ! g5]al effective date describ$ 9 subp>agraph 7,a71 & 7ii7 in=mation z to ! rights & rem$ies ( plan p>ticipants & b5efici>ies z well z h[ to contact ! ,dep>tm5t ( ,labor = fur!r in=mation & assi/ance1 :]e appropriate4 7,c7 ,=m & ,mann] ,any notice "u subp>agraph 7,a7-- 7i7 %all be provid$ 9 a =m & mann] prescrib$ 9 regulations ( ! ,secret>y ( ,labor1 7ii7 %all be writt5 9 a mann] s z to be und]/ood by ! av]age plan p>ticipant4 7#c7 ,model notices ,! ,secret>y %all-- 7,a7 prescribe model notices t ! plan sponsor ( a composite plan may use to satisfy ! notice requirem5ts "u ?is subsection1 & 7,b7 by regulation enum]ate any details relat$ to ! elem5ts li/$ 9 p>agraph 7#a7 t any notice "u ?is subsection mu/ include4 7#d7 ,deliv]y me?od ,any notice "u ?is "p %all be provid$ 9 writ+ & may also be provid$ 9 electronic =m to ! ext5t t ! =m is reasonably accessible to p]sons to :om ! notice is provid$4 #ddj4 ,limitation on increas+ b5efits 7a7 ,level ( curr5t fund$ ratios ,except z provid$ 9 subsections 7c71 7d71 & 7e71 no plan am5dm5t increas+ b5efits or e/abli%+ new b5efits "u a composite plan may be adopt$ = a plan ye> unless-- 7#a7 ! plan's curr5t fund$ ratio is at lea/ #aaj p]c5t 7)\t reg>d to ! b5efit increase or new b5efits71 7#b7 tak+ ! b5efit increase or new b5efits into acc\nt1 ! curr5t fund$ ratio is at lea/ #ajj p]c5t & ! project$ fund$ ratio = ! curr5t plan ye> is at lea/ #abj p]c5t1 7#c7 9 any case 9 :i*1 aft] tak+ ! b5efit increase or new b5efits into acc\nt1 ! curr5t fund$ ratio is less ?an #adj p]c5t or ! project$ fund$ ratio is less ?an #adj p]c5t1 ! b5efit increase or new b5efits are project$ by ! plan actu>y to increase ! pres5t value ( ! plan's liabilities = ! plan ye> by n m ?an #c p]c5t1 & 7#d7 expect$ contributions = ! curr5t plan ye> are at lea/ #abj p]c5t ( normal co/ = ! plan ye>1 det]m9$ us+ ! unit cr$it fund+ me?od & treat+ ! b5efit increase or new b5efits z 9 effect = ! entire plan ye>4 7b7 ,additional requirem5ts :]e core b5efits r$uc$ ,if a plan has be5 am5d$ to r$uce core b5efits pursuant to a realignm5t program "u section #dci7;a77#b77;,d71 su* plan may n be subsequ5tly am5d$ to increase core b5efits unless ! am5dm5t-- 7#a7 increases ! level ( future b5efit paym5ts only1 & 7#b7 provides = an equitable di/ribution ( b5efit increases across ! p>ticipant & b5efici>y population1 tak+ into acc\nt ! ext5t to :i* ! b5efits ( p>ticipants 7 previ\sly r$uc$ pursuant to su* realignm5t program4 7c7 ,exception ,to comply ) applicable law ,subsection 7a7 %all n apply 9 connection ) a plan am5dm5t if ! am5dm5t is requir$ z a condition ( qualification "u "p ,i ( sub*apt] ,d ( *apt] #a or to comply ) o!r applicable law4 7d7 ,exception :]e maximum d$uctible limit applies ,subsection 7a7 %all n apply 9 connection ) a plan am5dm5t if & to ! ext5t t contributions to ! composite plan w\ld n be d$uctible = ! plan ye> "u section #djd7;a77#a77;,e7 if ! plan am5dm5t is n adopt$4 ,! ,secret>y ( ! ,treasury %all issue regulations to implem5t ?is p>agraph4 7e7 ,exception = c]ta9 b5efit modifications ,subsection 7a7 %all n apply 9 connection ) a plan am5dm5t "u section #dci7;a77#e77;,c71 reg>d+ conditional b5efit modifications4 7f7 ,treatm5t ( plan am5dm5ts ,= purposes ( ?is section-- 7#a7 if two or m plan am5dm5ts increas+ b5efits or e/abli%+ new b5efits are adopt$ 9 a plan ye>1 su* am5dm5ts %all be treat$ z a s+le am5dm5t adopt$ on ! la/ day ( ! plan ye>1 7#b7 all b5efit increases & new b5efits adopt$ 9 a s+le am5dm5t are treat$ z a s+le b5efit increase1 irrespective ( :e!r ! increases & new b5efits take effect 9 m ?an "o plan ye>1 & 7#c7 increases 9 contributions or decreases 9 plan liabilities :i* are s*$ul$ to take effect 9 future plan ye>s may be tak5 into acc\nt 9 connection ) a plan am5dm5t if !y h be5 agre$ to 9 writ+ or o!rwise =maliz$ by ! date ! plan am5dm5t is adopt$4 #ddj;,a4 ,composite plan re/rictions to pres]ve legacy plan fund+ 7a7 ,treatm5t z a legacy plan 7#a7 ,9 g5]al ,= purposes ( ?is sub*apt]1 a def9$ b5efit plan %all be treat$ z a legacy plan ) respect to ! composite plan "u :i* ! employees :o 7 eligible to accrue a b5efit "u ! def9$ b5efit plan become eligible to accrue a b5efit "u su* composite plan4 7#b7 ,compon5t plans ,9 any case 9 :i* a def9$ b5efit plan is am5d$ to add a composite plan compon5t pursuant to section #dcg7;b71 p>agraph 7#a7 %all be appli$ by sub/itut+ def9$ b5efit compon5t = def9$ b5efit plan & composite plan compon5t = composite plan4 7#c7 ,eligible to accrue a b5efit ,= purposes ( p>agraph 7#a71 an employee is consid]$ eligible to accrue a b5efit "u a composite plan z ( ! fir/ day 9 :i* ! employee completes an h\r ( s]vice "u a collective b>ga9+ agreem5t t provides = contributions to & accruals "u ! composite plan 9 lieu ( accruals "u ! legacy plan4 7#d7 ,collective b>ga9+ agreem5t ,z us$ 9 ?is subp>t1 ! t]m collective b>ga9+ agreem5t includes any agreem5t "u :i* an employ] has an obligation to contribute to a plan4 7#e7 ,o!r t]ms ,any t]m us$ 9 ?is subp>t :i* is n def9$ 9 ?is "p & :i* is also us$ 9 section #dcb %all h ! same mean+ provid$ su* t]m 9 su* section4 7b7 ,re/rictions on acceptance by composite plan ( agreem5ts & contributions 7#a7 ,9 g5]al ,! plan sponsor ( a composite plan %all n accept or recognize a collective b>ga9+ agreem5t 7or any modification to su* agreem5t71 & no contributions may be accept$ & no b5efits may be accru$ or o!rwise e>n$ "u ! agreem5t-- 7,a7 9 any case 9 :i* ! plan actu>y ( any def9$ b5efit plan t w\ld be treat$ z a legacy plan ) respect to su* composite plan has c]tifi$ "u section #dcb7;b77#c7 t su* def9$ b5efit plan is or w be 9 critical /atus = ! plan ye> 9 :i* su* agreem5t w\ld take effect or = any ( ! succe$+ #e plan ye>s1 & 7,b7 unless ! agreem5t requires ea* employ] :o is a p>ty to su* agreem5t1 includ+ employ]s ^: employees are n p>ticipants 9 ! legacy plan1 to provide contributions to ! legacy plan ) respect to su* composite plan 9 a mann] t satisfies ! transition contribution requirem5ts ( subsection 7d74 7#b7 ,notice ,n lat] ?an #cj days aft] a det]m9ation by a plan sponsor ( a composite plan t an agreem5t fails to satisfy ! requirem5ts describ$ 9 p>agraph 7#a71 ! plan sponsor %all provide notification ( su* failure & ! reasons = su* det]m9ation to-- 7,a7 ! p>ties to ! agreem5t1 7,b7 active p>ticipants ( ! composite plan :o h ceas$ to accrue or o!rwise e>n b5efits ) respect to s]vice ) an employ] pursuant to p>agraph 7#a71 & 7,c7 ! ,secret>y ( ,labor1 ! ,secret>y ( ! ,treasury1 & ! ,p5sion ,b5efit ,gu>anty ,corporation4 7#c7 ,limitation on retroactive effect ,?is subsection %all n apply to b5efits accru$ be=e ! date on :i* notice is provid$ "u p>agraph 7#b74 7c7 ,re/riction on accrual ( b5efits "u a composite plan 7#a7 ,9 g5]al ,9 any case 9 :i* an employ]1 "u a collective b>ga9+ agreem5t ent]$ into aft] ,febru>y #e1 #bjah1 ceases to h an obligation to contribute to a multiemploy] def9$ b5efit plan1 no employees employ$ by ! employ] may accrue or o!rwise e>n b5efits "u any composite plan1 ) respect to s]vice ) t employ]1 = a #fj-mon? p]iod beg9n+ on ! date on :i* ! employ] ent]$ into su* collective b>ga9+ agreem5t4 7#b7 ,notice ( cessation ( obligation ,)9 #cj days ( det]m9+ t an employ] has ceas$ to h an obligation to contribute to a legacy plan ) respect to employees employ$ by an employ] t is or w be contribut+ to a composite plan ) respect to s]vice ( su* employees1 ! plan sponsor ( ! legacy plan %all notify ! plan sponsor ( ! composite plan ( t cessation4 7#c7 ,notice ( cessation ( accruals ,n lat] ?an #cj days aft] det]m9+ t an employ] has ceas$ to h an obligation to contribute to a legacy plan1 ! plan sponsor ( ! composite plan %all notify ! b>ga9+ p>ties1 ! active p>ticipants affect$ by ! cessation ( accruals1 ! ,secret>y1 ! ,secret>y ( ,labor1 & ! ,p5sion ,b5efit ,gu>anty ,corporation ( ! cessation ( accruals1 ! p]iod dur+ :i* su* cessation is 9 effect1 & ! reasons !re=4 7#d7 ,limitation on retroactive effect ,?is subsection %all n apply to b5efits accru$ be=e ! date on :i* notice is provid$ "u p>agraph 7#c74 7d7 ,transition contribution requirem5ts 7#a7 ,9 g5]al ,a collective b>ga9+ agreem5t satisfies ! transition contribution requirem5ts ( ?is subsection if ! agreem5t-- 7,a7 au?orizes = paym5t ( contributions to a legacy plan at a rate or rates equal to or great] ?an ! transition contribution rate e/abli%$ "u p>agraph 7#b71 & 7,b7 does n provide =-- 7i7 a susp5sion ( contributions to ! legacy plan ) respect to any p]iod ( s]vice1 or 7ii7 any new direct or indirect exclusion ( y\ng] or newly hir$ employees ( ! employ] f be+ tak5 into acc\nt 9 det]m9+ contributions ow$ to ! legacy plan4 7#b7 ,transition contribution rate 7,a7 ,9 g5]al ,! transition contribution rate = a plan ye> is ! contribution rate t1 z c]tifi$ by ! actu>y ( ! legacy plan 9 accordance ) ! pr9ciples 9 section #dcb7;b77#c77;,b71 is reasonably expect$ to be adequate-- 7i7 to fund ! normal co/ = ! plan ye>1 7ii7 to amortize ! plan's unfund$ liabilities 9 level annual in/allm5ts ov] #be ye>s1 beg9n+ ) ! plan ye> 9 :i* ! transition contribution rate is fir/ e/abli%$1 & 7iii7 to amortize any subsequ5t *anges 9 ! legacy plan's unfund$ liability due to exp]i5ce ga9s or losses 7includ+ inve/m5t ga9s or losses1 ga9s or losses due to contributions great] or less ?an ! contributions made "u ! prior transition contribution rate1 & o!r actu>ial ga9s or losses71 *anges 9 actu>ial assumptions1 *anges to ! legacy plan's b5efits1 or *anges 9 fund+ me?od ov] a p]iod ( #ae plan ye>s beg9n+ ) ! plan ye> 9 :i* su* *ange 9 unfund$ liability is incurr$4 ,! transition contribution rate = any plan ye> may n be less ?an ! transition contribution rate = ! plan ye> 9 :i* su* rate is fir/ e/abli%$4 7,b7 ,multiple rates ,if diff]5t rates ( contribution are payable to ! legacy plan by diff]5t employ]s or = diff]5t classes ( employees1 ! c]tification %all specify a transition contribution rate = ea* su* employ]4 7,c7 ,rate applicable to employ] 7i7 ,9 g5]al ,except z provid$ by clause 7ii71 ! transition contribution rate applicable to an employ] = a plan ye> is ! rate 9 effect = ! plan ye> ( ! legacy plan t comm5ces on or aft] #ahj days be=e ! e>li] (-- 7,i7 ! effective date ( ! collective b>ga9+ agreem5t pursuant to :i* ! employ] contributes to ! legacy plan1 or 7,,ii7 #e ye>s aft] ! la/ plan ye> = :i* ! transition contribution rate applicable to ! employ] 0 e/abli%$ or updat$4 7ii7 ,exception ,! transition contribution rate applicable to an employ] = ! fir/ plan ye> beg9n+ on or aft] ! comm5cem5t ( ! employ]'s obligation to contribute to ! composite plan is ! rate 9 effect = ! plan ye> ( ! legacy plan t comm5ces on or aft] #ahj days be=e su* fir/ plan ye>4 7,d7 ,effect ( legacy plan f9ancial circum/ances ,if ! plan actu>y ( ! legacy plan has c]tifi$ "u section #dcb t ! plan is 9 endang]$ or critical /atus = a plan ye>1 ! transition contribution rate = ! foll[+ plan ye> is ! rate det]m9$ ) respect to ! employ] "u ! legacy plan's fund+ improvem5t or rehabilitation plan "u section #dcb1 if great] ?an ! rate o!rwise det]m9$1 b 9 no ev5t great] ?an #ge p]c5t ( ! sum ( ! contribution rates applicable to ! legacy plan & ! composite plan = ! plan ye>4 7,e7 ,o!r actu>ial assumptions & me?ods ,except z provid$ 9 subp>agraph 7,a71 ! det]m9ation ( ! transition contribution rate = a plan ye> %all be bas$ on actu>ial assumptions & me?ods consi/5t ) ! m9imum fund+ det]m9ations made "u section #dca 7or1 if applicable1 section #dcb7 ) respect to ! legacy plan = ! plan ye>4 7,f7 ,adju/m5ts 9 rate ,! plan sponsor ( a legacy plan f "t to "t may adju/ ! transition contribution rate or rates applicable to an employ] "u ?is p>agraph by increas+ "s rates & decreas+ o!rs if ! actu>y c]tifies t su* adju/$ rates 9 comb9ation w produce project$ contribution income = ! plan ye> beg9n+ on or aft] ! date ( c]tification t is n less ?an w\ld be produc$ by ! transition contribution rates 9 effect at ! "t ( ! c]tification4 7,g7 ,notice ( transition contribution rate ,! plan sponsor ( a legacy plan %all provide notice to ! p>ties to collective b>ga9+ agreem5ts pursuant to :i* contributions are made to ! legacy plan ( *anges to ! transition contribution rate requirem5ts at lea/ #cj days be=e ! beg9n+ ( ! plan ye> = :i* ! rate is effective4 7,h7 ,notice to composite plan sponsor ,n lat] ?an #cj days aft] a det]m9ation by ! plan sponsor ( a legacy plan t a collective b>ga9+ agreem5t provides = a rate ( contributions t is bel[ ! transition contribution rate applicable to "o or m employ]s t are p>ties to ! collective b>ga9+ agreem5t1 ! plan sponsor ( ! legacy plan %all notify ! plan sponsor ( any composite plan "u :i* employees ( su* employ] w\ld o!rwise be eligible to accrue a b5efit4 7#c7 ,correction proc$ures ,pursuant to /&>ds prescrib$ by ! ,secret>y ( ,labor1 ! plan sponsor ( a composite plan %all adopt rules & proc$ures t give ! p>ties to ! collective b>ga9+ agreem5t notice ( ! failure ( su* agreem5t to satisfy ! transition contribution requirem5ts ( ?is subsection1 & a reasonable opportunity to correct su* failure1 n to exce$ #ahj days f ! date ( notice giv5 "u subsection 7b77#b74 7#d7 ,supplem5tal contributions ,a collective b>ga9+ agreem5t may provide = supplem5tal contributions to ! legacy plan = a plan ye> 9 excess ( ! transition contribution rate det]m9$ "u p>agraph 7#b71 reg>dless ( :e!r ! legacy plan is 9 endang]$ or critical /atus = su* plan ye>4 7e7 ,nonapplication ( composite plan re/rictions 7#a7 ,9 g5]al ,! provisions ( subsections 7a71 7b71 & 7c7 %all n apply ) respect to a collective b>ga9+ agreem5t1 to ! ext5t ! agreem5t1 or a pr$ecessor agreem5t1 provides or provid$ = contributions to a def9$ b5efit plan t is a legacy plan1 z ( ! fir/ day ( ! fir/ plan ye> foll[+ a plan ye> = :i* ! plan actu>y c]tifies t ! plan is fully fund$1 has be5 fully fund$ = at lea/ ?ree out ( ! imm$iately prec$+ #e plan ye>s1 & is project$ to rema9 fully fund$ = at lea/ ! foll[+ #d plan ye>s4 7#b7 ,det]m9ation ( fully fund$ ,a plan is fully fund$ = purposes ( p>agraph 7#a7 if1 z ( ! valuation date ( ! plan = a plan ye>1 ! value ( ! plan's assets equals or exce$s ! pres5t value ( ! plan's liabilities1 det]m9$ 9 accordance ) ! rules prescrib$ by ! ,p5sion ,b5efit ,gu>anty ,corporation "u sections #dbai7;c77#a77;,d7 & #dbha ( ,employee ,retirem5t ,income & ,security ,act = multiemploy] plans t]m9at+ by mass )drawal1 z 9 effect = ! date ( ! det]m9ation1 except ! plan's reasonable assumption reg>d+ ! />t+ date ( b5efits may be us$4 7#c7 ,o!r applicable rules ,except z provid$ 9 p>agraph 7#b71 actu>ial det]m9ations & projections "u ?is section %all be bas$ on ! rules 9 section #dcb7;b77#c7 & section #dch7;b74 #ddj;,b4 ,m]g]s & asset transf]s ( composite plans 7a7 ,9 g5]al ,assets & liabilities ( a composite plan may only be m]g$ )1 or transf]r$ to1 ano!r plan if-- 7#a7 ! o!r plan is a composite plan1 7#b7 ! plan or plans result+ f ! m]g] or transf] is a composite plan1 7#c7 no p>ticipant's accru$ b5efit or adju/able b5efit is l[] imm$iately aft] ! transaction ?an x 0 imm$iately be=e ! transaction1 & 7#d7 ! value ( ! assets transf]r$ 9 ! case ( a transf] reasonably reflects ! value ( ! am\nts contribut$ ) respect to ! p>ticipants ^: b5efits are be+ transf]r$1 adju/$ = allocable di/ributions1 inve/m5t ga9s & losses1 & adm9i/rative exp5ses4 7b7 ,legacy plan 7#a7 ,9 g5]al ,aft] a m]g] or transf] involv+ a composite plan1 ! legacy plan ) respect to an employ] t is obligat$ to contribute to ! result+ composite plan is ! legacy plan t appli$ to t employ] imm$iately be=e ! m]g] or transf]4 7#b7 ,multiple ,legacy ,plans ,if an employ] is obligat$ to contribute to m ?an "o legacy plan ) respect to employees eligible to accrue b5efits "u m ?an "o composite plan & !re is a m]g] or transf] ( su* legacy plans1 ! transition contribution rate applicable to ! legacy plan result+ f ! m]g] or transf] ) respect to t employ] %all be det]m9$ 9 accordance ) ! provisions ( section #ddj;,a7d77#b77;,b74 4 7#b7 ,cl]ical am5dm5t ,! table ( subp>ts = "p ,,iii ( sub*apt] ,d ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new item3 ,subp>t ,c4 ,composite ,plans & ,legacy ,plans 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to plan ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 #c4 ,application ( c]ta9 requirem5ts to composite plans 7a7 ,am5dm5ts to ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#a7 ,treatm5t = purposes ( fund+ notices ,section #aja7;f7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #ajba7;f77 is am5d$-- 7,a7 9 p>agraph 7#a7 by /rik+ title ,,iv applies & ins]t+ title ,,iv applies or :i* is a composite plan2 & 7,b7 by add+ at ! end ! foll[+3 7#e7 ,application to composite plans ,! provisions ( ?is subsection %all apply to a composite plan only to ! ext5t prescrib$ by ! ,secret>y 9 regulations t take into acc\nt ! diff]5ces betwe5 a composite plan & a def9$ b5efit plan t is a multiemploy] plan4 4 7#b7 ,treatm5t = purposes ( annual report ,section #ajc ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #ajbc7 is am5d$-- 7,a7 9 subsection 7d7 by add+ at ! end ! foll[+ s5t5ce3 ,! provisions ( ?is subsection %all apply to a composite plan only to ! ext5t prescrib$ by ! ,secret>y 9 regulations t take into acc\nt ! diff]5ces betwe5 a composite plan & a def9$ b5efit plan t is a multiemploy] plan42 7,b7 9 subsection 7f7 by add+ at ! end ! foll[+3 7#c7 ,additional in=mation = composite plans ,) respect to any composite plan-- 7,a7 ! provisions ( p>agraph 7#a77;,a7 %all apply by sub/itut+ curr5t fund$ ratio & project$ fund$ ratio 7z su* t]ms are def9$ 9 section #hjb7;a77#b77 = fund$ p]c5tage ea* place x appe>s2 & 7,b7 ! provisions ( p>agraph 7#b7 %all apply only to ! ext5t prescrib$ by ! ,secret>y 9 regulations t take into acc\nt ! diff]5ces betwe5 a composite plan & a def9$ b5efit plan t is a multiemploy] plan4 2 & 7,c7 by add+ at ! end ! foll[+3 7h7 ,composite plans ,a multiemploy] plan t incorporates ! features ( a composite plan z provid$ 9 section #hja7;b7 %all be treat$ z a s+le plan = purposes ( ! report requir$ by ?is section1 except t sep>ate f9ancial /atem5ts & actu>ial /atem5ts %all be provid$ "u p>agraphs 7#c7 & 7#d7 ( subsection 7a7 = ! def9$ b5efit plan compon5t & = ! composite plan compon5t ( ! multiemploy] plan4 4 7#c7 ,treatm5t = purposes ( p5sion b5efit /atem5ts ,section #aje7;a7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #ajbe7;a77 is am5d$ by add+ at ! end ! foll[+3 7#d7 ,composite plans ,= purposes ( ?is subsection1 a composite plan %all be treat$ z a def9$ b5efit plan to ! ext5t prescrib$ by ! ,secret>y 9 regulations t take into acc\nt ! diff]5ces betwe5 a composite plan & a def9$ b5efit plan t is a multiemploy] plan4 4 7b7 ,am5dm5ts to ! ,int]nal ,rev5ue ,code ( #aihf ,section #fjeh ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by r$esignat+ subsection 7f7 z subsection 7g7 & by ins]t+ aft] subsection 7e7 ! foll[+3 7f7 ,composite plans ,a multiemploy] plan t incorporates ! features ( a composite plan z provid$ 9 section #dcg7;b7 %all be treat$ z a s+le plan = purposes ( ! return requir$ by ?is section1 except t sep>ate f9ancial /atem5ts %all be provid$ = ! def9$ b5efit plan compon5t & = ! composite plan compon5t ( ! multiemploy] plan4 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to plan ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 #d4 ,treatm5t ( composite plans "u title ,,iv 7a7 ,def9ition ,section #djja7;a7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #acja7;a77 is am5d$ by /rik+ ! p]iod at ! end ( p>agraph 7#ba7 & ins]t+ a semicolon & by add+ at ! end ! foll[+3 7#bb7 ,composite plan ,! t]m composite plan has ! mean+ set =? 9 section #hja4 4 7b7 ,composite plans disreg>d$ = calculat+ premiums ,section #djjf7;a7 ( su* ,act 7#bi ,u4,s4,c4 #acjf7;a77 is am5d$ by add+ at ! end ! foll[+3 7#i7 ,! composite plan compon5t ( a multiemploy] plan %all be disreg>d$ 9 det]m9+ ! premiums due "u ?is section f ! multiemploy] plan4 4 7c7 ,composite plans n cov]$ ,section #djba7;b77#a7 ( su* ,act 7#bi ,u4,s4,c4 #acba7;b77#a77 is am5d$ by /rik+ ,act & ins]t+ ,act1 or a composite plan1 z def9$ 9 p>agraph 7#dc7 ( section #c ( ?is ,act4 7d7 ,no )drawal liability ,section #dbja ( su* ,act 7#bi ,u4,s4,c4 #acha7 is am5d$ by add+ at ! end ! foll[+3 7c7 ,contributions by an employ] to ! composite plan compon5t ( a multiemploy] plan %all n be tak5 into acc\nt = any purpose "u ?is title4 4 7e7 ,no )drawal liability = c]ta9 plans ,section #dbja ( su* ,act 7#bi ,u4,s4,c4 #acha7 is fur!r am5d$ by add+ at ! end ! foll[+3 7d7 ,contributions by an employ] to a multiemploy] plan describ$ 9 ! except clause ( section #c7ce7 ( ?is ,act pursuant to a collective b>ga9+ agreem5t t specifically designates t su* contributions %all be allocat$ to ! sep>ate def9$ contribution acc\nts ( p>ticipants "u ! plan %all n be tak5 into acc\nt ) respect to ! def9$ b5efit portion ( ! plan = any purpose "u ?is title 7includ+ ! det]m9ation ( ! employ]'s highe/ contribution rate "u section #dbai71 ev5 if1 "u ! t]ms ( ! plan1 p>ticipants h ! option to transf] assets 9 _! sep>ate def9$ contribution acc\nts to ! def9$ b5efit portion ( ! plan 9 return = s]vice cr$it "u ! def9$ b5efit portion1 at rates e/abli%$ by ! plan sponsor4 7e7 ,a legacy plan creat$ "u section #hje %all be deem$ to h no unfund$ ve/$ b5efits = purposes ( ?is "p1 = ea* plan ye> foll[+ a p]iod ( #e consecutive plan ye>s = :i*-- 7#a7 ! plan 0 fully fund$ )9 ! mean+ ( section #hje = at lea/ #c ( ! plan ye>s dur+ t p]iod1 end+ ) a plan ye> = :i* ! plan is fully fund$2 7#b7 ! plan _h no unfund$ ve/$ b5efits = at lea/ #c ( ! plan ye>s dur+ t p]iod1 end+ ) a plan ye> = :i* ! plan is fully fund$2 & 7#c7 ! plan is project$ to be fully fund$ & to h no unfund$ ve/$ b5efits = ! foll[+ f\r plan ye>s4 4 7f7 ,no )drawal liability = employ]s contribut+ to c]ta9 fully fund$ legacy plans ,section #dbaa ( su* ,act 7#bi ,u4,s4,c4 #achb7 is am5d$ by add+ at ! end ! foll[+3 7g7 ,no am\nt ( unfund$ ve/$ b5efits %all be allocat$ to an employ] t has an obligation to contribute to a legacy plan describ$ 9 subsection 7e7 ( section #dbja = ea* plan ye> = :i* su* subsection applies4 4 7g7 ,no obligation ,to contribute ,section #dbab ( su* ,act 7#bi ,u4,s4,c4 #acib7 is am5d$ by add+ at ! end ! foll[+3 7d7 ,no obligation ,to contribute ,an employ] %all n be treat$ z hav+ an obligation to contribute to a multiemploy] def9$ b5efit plan )9 ! mean+ ( subsection 7a7 solely because-- 7#a7 9 ! case ( a multiemploy] plan t includes a composite plan compon5t1 ! employ] has an obligation to contribute to ! composite plan compon5t ( ! plan2 7#b7 ! employ] has an obligation to contribute to a composite plan t is ma9ta9$ pursuant to "o or m collective b>ga9+ agreem5ts "u :i* ! multiemploy] def9$ b5efit plan is or previ\sly 0 ma9ta9$2 or 7#c7 ! employ] contributes or has contribut$ "u section #hje7;d7 to a legacy plan associat$ ) a composite plan pursuant to a collective b>ga9+ agreem5t b employees ( t employ] 7 n eligible to accrue b5efits "u ! legacy plan ) respect to s]vice ) t employ]4 4 7h7 ,no inf]5ce ,no?+ 9 ! am5dm5t made by subsection 7e7 %all be con/ru$ to create an inf]5ce ) respect to ! treatm5t "u title ,,iv ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd1 z 9 effect be=e su* am5dm5t1 ( contributions by an employ] to a multiemploy] plan describ$ 9 ! except clause ( section #c7ce7 ( su* ,act t are made be=e ! effective date ( subsection 7e7 specifi$ 9 subsection 7h77#b74 7i7 ,effective date 7#a7 ,9 g5]al ,except z provid$ 9 subp>agraph 7#b71 ! am5dm5ts made by ?is section %all apply to plan ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 7#b7 ,special rule = section #dad7k7 multiemploy] plans ,! am5dm5t made by subsection 7e7 %all apply only to requir$ contributions payable = plan ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 #e4 ,con=m+ *anges 7a7 ,def9itions ,section #c ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #ajjb7 is am5d$-- 7#a7 9 p>agraph 7#ce71 by ins]t+ or a composite plan aft] o!r ?an an individual acc\nt plan2 & 7#b7 by add+ at ! end ! foll[+3 7#dc7 ,! t]m composite plan has ! mean+ giv5 ! t]m 9 section #hja7;a74 4 7b7 ,special fund+ rule = c]ta9 legacy plans 7#a7 ,am5dm5t to ,employee ,retirem5t ,income ,security ,act ( #aigd ,section #cjd7;b7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #ajhd7;b77 is am5d$ by add+ at ! end ! foll[+3 7#i7 ,special fund+ rule = c]ta9 legacy plans ,9 ! case ( a multiemploy] def9$ b5efit plan t has adopt$ an am5dm5t "u section #hja7;b71 9 accordance ) :i* no fur!r b5efits %all accrue "u ! multiemploy] def9$ b5efit plan1 ! plan sponsor may comb9e ! out/&+ balance ( all *>ge & cr$it bases & amortize t comb9$ base 9 level annual in/allm5ts 7until fully amortiz$7 ov] a p]iod ( #be plan ye>s beg9n+ ) ! plan ye> foll[+ ! date all b5efit accruals ceas$4 4 7#b7 ,am5dm5t to ,int]nal ,rev5ue ,code ( #aihf ,section #dca7;b7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+3 7#i7 ,special fund+ rule = c]ta9 legacy plans ,9 ! case ( a multiemploy] def9$ b5efit plan t has adopt$ an am5dm5t "u section #dcg7;b71 9 accordance ) :i* no fur!r b5efits %all accrue "u ! multiemploy] def9$ b5efit plan1 ! plan sponsor may comb9e ! out/&+ balance ( all *>ge & cr$it bases & amortize t comb9$ base 9 level annual in/allm5ts 7until fully amortiz$7 ov] a p]iod ( #be plan ye>s beg9n+ ) ! plan ye> foll[+ ! date on :i* all b5efit accruals ceas$4 4 7c7 ,b5efits aft] m]g]1 consolidation1 or transf] ( assets 7#a7 ,am5dm5t to ,employee ,retirem5t ,income ,security ,act ( #aigd ,section #bjh ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #ajeh7 is am5d$-- 7,a7 by /rik+ s mu* ( ! fir/ s5t5ce z prec$es may n m]ge & ins]t+ ! foll[+3 7#a7 ,9 g5]al ,except z provid$ 9 p>agraph 7#b71 a p5sion plan may n m]ge1 & 2 & 7,b7 by /rik+ ! second s5t5ce & add+ at ! end ! foll[+3 7#b7 ,special requirem5ts = multiemploy] plans ,p>agraph 7#a7 %all n apply to any transaction to ! ext5t t p>ticipants ei!r be=e or aft] ! transaction are cov]$ "u a multiemploy] plan to :i* title ,,iv ( ?is ,act applies or a composite plan4 4 7#b7 ,am5dm5ts to ,int]nal ,rev5ue ,code ( #aihf 7,a7 ,qualification requirem5t ,section #dja7;a77#ab7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$-- 7i7 by /rik+ 7#ab7 ,a tru/ & ins]t+ ! foll[+3 7#ab7 ,b5efits aft] m]g]1 consolidation1 or transf] ( assets 7,a7 ,9 g5]al ,except z provid$ 9 subp>agraph 7,b71 a tru/ 2 7ii7 by /rik+ ! second s5t5ce2 & 7iii7 by add+ at ! end ! foll[+3 7,b7 ,special requirem5ts = multiemploy] plans ,subp>agraph 7,a7 %all n apply to any multiemploy] plan ) respect to any transaction to ! ext5t t p>ticipants ei!r be=e or aft] ! transaction are cov]$ "u a multiemploy] plan to :i* title ,,iv ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd applies or a composite plan4 4 7,b7 ,additional qualification requirem5t ,p>agraph 7#a7 ( section #dad7l7 ( su* ,code is am5d$-- 7i7 by /rik+ 7#a7 ,9 g5]al & all t foll[s ?r\gh %all n con/itute & ins]t+ ! foll[+3 7#a7 ,b5efit protections3 m]g]1 consolidation1 transf] 7,a7 ,9 g5]al ,except z provid$ 9 subp>agraph 7,b71 a tru/ :i* =ms a "p ( a plan %all n con/itute 2 & 7ii7 by /rik+ ! second s5t5ce2 & 7iii7 by add+ at ! end ! foll[+3 7,b7 ,special requirem5ts = multiemploy] plans ,subp>agraph 7,a7 does n apply to any multiemploy] plan ) respect to any transaction to ! ext5t t p>ticipants ei!r be=e or aft] ! transaction are cov]$ "u a multiemploy] plan to :i* title ,,iv ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd applies or a composite plan4 4 7d7 ,requirem5ts = /atus z a qualifi$ plan 7#a7 ,requirem5t t actu>ial assumptions be specifi$ ,section #dja7;a77#be7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ 79 ! case ( a composite plan1 b5efits objectively calculat$ pursuant to a =mula7 aft] def9itely det]m9able b5efits4 7#b7 ,miss+ p>ticipants 9 t]m9at+ composite plan ,section #dja7;a77#cd7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ 1 a tru/ & ins]t+ or a composite plan1 a tru/4 7e7 ,d$uction = contributions to a qualifi$ plan ,section #djd7;a77#a7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by r$esignat+ subp>agraph 7,e7 z subp>agraph 7,f7 & by ins]t+ aft] subp>agraph 7,d7 ! foll[+3 7,e7 ,composite plans 7i7 ,9 g5]al ,9 ! case ( a composite plan1 subp>agraph 7,d7 %all n apply & ! maximum am\nt d$uctible = a plan ye> %all be ! excess 7if any7 (-- 7,i7 #afj p]c5t ( ! great] (-- 7aa7 ! curr5t liability ( ! plan det]m9$ 9 accordance ) ! pr9ciples ( section #dca7;c77#f77;,d71 or 7bb7 ! pres5t value ( plan liabilities z det]m9$ "u section #dch1 ov] 7,,ii7 ! fair m>ket value ( ! plan's assets1 project$ to ! end ( ! plan ye>4 7ii7 ,special rules = pr$ecessor multiemploy] plan to composite plan 7,i7 ,9 g5]al ,except z provid$ 9 subclause 7,,ii71 if an employ] contributes to a composite plan ) respect to its employees1 contributions by t employ] to a multiemploy] def9$ b5efit plan ) respect to "s or all ( ! same gr\p ( employees %all be d$uctible "u sections #afb & ?is section1 subject to ! limits 9 subp>agraph 7,d74 7,,ii7 ,transition contribution ,! full am\nt ( a contribution to satisfy ! transition contribution requirem5t 7z def9$ 9 section #ddj;,a7d77 & allocat$ to ! legacy def9$ b5efit plan = ! plan ye> %all be d$uctible = ! employ]'s taxable ye> end+ ) or )9 ! plan ye>4 4 7f7 ,m9imum ve/+ /&>ds 7#a7 ,ye>s ( s]vice "u composite plans 7,a7 ,employee ,retirem5t ,income ,security ,act ( #aigd ,section #bjc ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #ajec7 is am5d$ by ins]t+ aft] subsection 7f7 ! foll[+3 7g7 ,special rules = comput+ ye>s ( s]vice "u composite plans 7#a7 ,9 g5]al ,9 det]m9+ a qualifi$ employee's ye>s ( s]vice "u a composite plan = purposes ( ?is section1 ! employee's ye>s ( s]vice "u a legacy plan %all be treat$ z ye>s ( s]vice e>n$ "u ! composite plan4 ,= purposes ( su* det]m9ation1 a composite plan %all n be treat$ z a def9$ b5efit plan pursuant to section #hja7;d74 7#b7 ,qualifi$ employee ,= purposes ( ?is subsection1 an employee is a qualifi$ employee if ! employee fir/ completes an h\r ( s]vice "u ! composite plan 7det]m9$ )\t reg>d to ! provisions ( ?is subsection7 )9 ! #ab-mon? p]iod imm$iately prec$+ or ! #bd-mon? p]iod imm$iately foll[+ ! date ! employee ceas$ to accrue b5efits "u ! legacy plan4 7#c7 ,c]tification ( ye>s ( s]vice ,= purposes ( p>agraph 7#a71 ! plan sponsor ( ! composite plan %all rely on a writt5 c]tification by ! plan sponsor ( ! legacy plan ( ! ye>s ( s]vice ! qualifi$ employee complet$ "u ! def9$ b5efit plan z ( ! date ! employee satisfies ! requirem5ts ( p>agraph 7#b71 disreg>d+ any ye>s ( s]vice t _h be5 =feit$ "u ! rules ( ! def9$ b5efit plan be=e t date4 7h7 ,special rules = comput+ ye>s ( s]vice "u legacy plans 7#a7 ,9 g5]al ,9 det]m9+ a qualifi$ employee's ye>s ( s]vice "u a legacy plan = purposes ( ?is section1 & 9 addition to any s]vice "u applicable regulations1 ! employee's ye>s ( s]vice "u a composite plan %all be treat$ z ye>s ( s]vice e>n$ "u ! legacy plan4 ,= purposes ( su* det]m9ation1 a composite plan %all n be treat$ z a def9$ b5efit plan pursuant to section #hja7;d74 7#b7 ,qualifi$ employee ,= purposes ( ?is subsection1 an employee is a qualifi$ employee if ! employee fir/ completes an h\r ( s]vice "u ! composite plan 7det]m9$ )\t reg>d to ! provisions ( ?is subsection7 )9 ! #ab-mon? p]iod imm$iately prec$+ or ! #bd-mon? p]iod imm$iately foll[+ ! date ! employee ceas$ to accrue b5efits "u ! legacy plan4 7#c7 ,c]tification ( ye>s ( s]vice ,= purposes ( p>agraph 7#a71 ! plan sponsor ( ! legacy plan %all rely on a writt5 c]tification by ! plan sponsor ( ! composite plan ( ! ye>s ( s]vice ! qualifi$ employee complet$ "u ! composite plan aft] ! employee satisfies ! requirem5ts ( p>agraph 7#b71 disreg>d+ any ye>s ( s]vice t has be5 =feit$ "u ! rules ( ! composite plan4 4 7,b7 ,int]nal ,rev5ue ,code ( #aihf ,section #daa7;a7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+3 7#ad7 ,special rules = det]m9+ ye>s ( s]vice "u composite plans 7,a7 ,9 g5]al ,9 det]m9+ a qualifi$ employee's ye>s ( s]vice "u a composite plan = purposes ( ?is subsection1 ! employee's ye>s ( s]vice "u a legacy plan %all be treat$ z ye>s ( s]vice e>n$ "u ! composite plan4 ,= purposes ( su* det]m9ation1 a composite plan %all n be treat$ z a def9$ b5efit plan pursuant to section #dcg7;d74 7,b7 ,qualifi$ employee ,= purposes ( ?is p>agraph1 an employee is a qualifi$ employee if ! employee fir/ completes an h\r ( s]vice "u ! composite plan 7det]m9$ )\t reg>d to ! provisions ( ?is p>agraph7 )9 ! #ab-mon? p]iod imm$iately prec$+ or ! #bd-mon? p]iod imm$iately foll[+ ! date ! employee ceas$ to accrue b5efits "u ! legacy plan4 7,c7 ,c]tification ( ye>s ( s]vice ,= purposes ( subp>agraph 7,a71 ! plan sponsor ( ! composite plan %all rely on a writt5 c]tification by ! plan sponsor ( ! legacy plan ( ! ye>s ( s]vice ! qualifi$ employee complet$ "u ! legacy plan z ( ! date ! employee satisfies ! requirem5ts ( subp>agraph 7,b71 disreg>d+ any ye>s ( s]vice t _h be5 =feit$ "u ! rules ( ! def9$ b5efit plan be=e t date4 7#ae7 ,special rules = comput+ ye>s ( s]vice "u legacy plans 7,a7 ,9 g5]al ,9 det]m9+ a qualifi$ employee's ye>s ( s]vice "u a legacy plan = purposes ( ?is section1 & 9 addition to any s]vice "u applicable regulations1 ! employee's ye>s ( s]vice "u a composite plan %all be treat$ z ye>s ( s]vice e>n$ "u ! legacy plan4 ,= purposes ( su* det]m9ation1 a composite plan %all n be treat$ z a def9$ b5efit plan pursuant to section #dcg7;d74 7,b7 ,qualifi$ employee ,= purposes ( ?is p>agraph1 an employee is a qualifi$ employee if ! employee fir/ completes an h\r ( s]vice "u ! composite plan 7det]m9$ )\t reg>d to ! provisions ( ?is p>agraph7 )9 ! #ab-mon? p]iod imm$iately prec$+ or ! #bd-mon? p]iod imm$iately foll[+ ! date ! employee ceas$ to accrue b5efits "u ! legacy plan4 7,c7 ,c]tification ( ye>s ( s]vice ,= purposes ( subp>agraph 7,a71 ! plan sponsor ( ! legacy plan %all rely on a writt5 c]tification by ! plan sponsor ( ! composite plan ( ! ye>s ( s]vice ! qualifi$ employee complet$ "u ! composite plan aft] ! employee satisfies ! requirem5ts ( subp>agraph 7,b71 disreg>d+ any ye>s ( s]vice t has be5 =feit$ "u ! rules ( ! composite plan4 4 7#b7 ,r$uction ( b5efits 7,a7 ,employee ,retirem5t ,income ,security ,act ( #aigd ,section #bjc7;a77#c77;,e77ii7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #ajec7;a77#c77;,e77ii77 is am5d$-- 7i7 9 subclause 7,i7 by /rik+ #dbdd;,a & ins]t+ #cje7;e71 #hjc12 & 7ii7 9 subclause 7,,ii7 by /rik+ #dbde & ins]t+ #cje7;e71 #dbde14 7,b7 ,int]nal ,rev5ue ,code ( #aihf ,section #daa7;a77#c77;,f7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$-- 7i7 9 clause 7i7 by /rik+ section #dah;,d or "u section #dbha ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd & ins]t+ section #dcb7;e7 or #dci or "u section #dbha ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd2 & 7ii7 9 clause 7ii7 by ins]t+ or #dcb7;e7 aft] section #dah;,e4 7#c7 ,accru$ b5efit requirem5ts 7,a7 ,employee ,retirem5t ,income ,security ,act ( #aigd ,section #bjd7;b77#a77;,b77i7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #ajed7;b77#a77;,b77i77 is am5d$ by ins]t+ 1 includ+ an am5dm5t r$uc+ or susp5d+ b5efits "u section #cje7;e71 #hjc1 #dbde or #dbha1 aft] any am5dm5t to ! plan4 7,b7 ,int]nal ,rev5ue ,code ( #aihf ,section #daa7;b77#a77;,b77i7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ 1 includ+ an am5dm5t r$uc+ or susp5d+ b5efits "u section #dah;,e1 #dcb7;e7 or #dci1 or "u section #dbha ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd1 aft] any am5dm5t to ! plan4 7#d7 ,additional accru$ b5efit requirem5ts 7,a7 ,employee ,retirem5t ,income ,security ,act ( #aigd ,section #bjd7;b77#a77;,h77v7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #ajec7;b77#a77;,h77v77 is am5d$ by ins]t+ be=e ! p]iod at ! end ! foll[+3 1 or b5efits are r$uc$ or susp5d$ "u section #cje7;e71 #hjc1 #dbde1 or #dbha4 7,b7 ,int]nal ,rev5ue ,code ( #aihf ,section #daa7;b77#a77;,h77iv7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$-- 7i7 9 ! head+ by /rik+ b5efit & ins]t+ b5efit & ! susp5sion & r$uction ( c]ta9 b5efits2 & 7ii7 9 ! text by ins]t+ be=e ! p]iod at ! end ! foll[+3 1 or b5efits are r$uc$ or susp5d$ "u section #dah;,e1 #dcb7;e71 or #dci1 or "u section #dbha ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd4 7#e7 ,accru$ b5efit n to be decreas$ by am5dm5t 7,a7 ,employee ,retirem5t ,income ,security ,act ( #aigd ,section #bjd7;g77#a7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #ajec7;g77#a77 is am5d$ by ins]t+ aft] #cjb7;d77#b7 ! foll[+3 1 #cje7;e71 #hjc1 #dbde14 7,b7 ,int]nal rev5ue code ( #aihf ,section #daa7;d77#f77;,a7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ aft] #dab7;d77#b71 ! foll[+3 #dah;,e1 #dcb7;e71 or #dci14 7g7 ,c]ta9 fund+ rules n applicable 7#a7 ,employee ,retirem5t ,income ,security ,act ( #aigd ,section #cje ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #ajhe7 is am5d$ by add+ at ! end ! foll[+3 7k7 ,legacy plans ,sections #cjb1 #cjd1 & #cje %all n apply to an employ] t has an obligation to contribute to a plan t is a legacy plan )9 ! mean+ ( section #hje7;a7 solely because ! employ] has an obligation to contribute to a composite plan describ$ 9 section #hja t is associat$ ) t legacy plan4 4 7#b7 ,int]nal ,rev5ue ,code ( #aihf ,section #dcb ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+3 7k7 ,legacy plans ,sections #dab1 #dca1 & #dcb %all n apply to an employ] t has an obligation to contribute to a plan t is a legacy plan )9 ! mean+ ( section #ddj;,a7a7 solely because ! employ] has an obligation to contribute to a composite plan describ$ 9 section #dcg t is associat$ ) t legacy plan4 4 7h7 ,t]m9ation ( composite plan ,section #djc7;d7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #aajc7;d7 is am5d$-- 7#a7 9 p>agraph 7#a71 by /rik+ regulations ( ! ,secret>y4 & ins]t+ regulations ( ! ,secret>y1 or z provid$ 9 p>agraph 7#c742 & 7#b7 by add+ at ! end ! foll[+3 7#c7 ,section #djdd7;a7 ( ?is ,act %all be appli$ 9 ! case ( ! t]m9ation ( a composite plan by-- 7,a7 limit+ ! b5efits subject to p>agraph 7#c7 !re( to b5efits z def9$ 9 section #hjb7;b77#c77;,b72 & 7,b7 includ+ 9 ! b5efits subject to p>agraph 7#d7 all o!r b5efits 7if any7 ( individuals "u ! plan t w\ld be gu>ante$ "u section #djbb;,a if ! plan 7 subject to title ,,iv4 4 7i7 ,good fai? compliance prior to guidance ,:]e ! implem5tation ( any provision ( law add$ or am5d$ by ?is ,act is subject to issuance ( regulations by ! ,secret>y ( ,labor1 ! ,secret>y ( ! ,treasury1 or ! ,p5sion ,b5efit ,gu>anty ,corporation1 a multiemploy] plan %all n be treat$ z fail+ to meet ! requirem5ts ( any su* provision prior to ! issuance ( f9al regulations or o!r guidance to c>ry out su* provision if su* plan is op]at$ 9 accordance ) a reasonable1 good fai? int]pretation ( su* provision4 #f4 ,effective date ,unless o!rwise specifi$1 ! am5dm5ts made by ?is ,act %all apply to plan ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4