INCREASE IN CURRENT LIABILITY FUNDING LIMIT.

SEC. 1521. INCREASE IN CURRENT LIABILITY FUNDING LIMIT. (a) Amendment to 1986 Code.—Section 412(c)(7) (relating to full-funding limitation) is amended— (A) by striking “150 percent” in subparagraph (A)(i)(I) and inserting “the applicable percentage”, and (B) by adding at the end the following: “(F) Applicable percentage.—For purposes of subparagraph (A)(i)(I), the applicable percentage shall be determined in accordance with the following table: “In the case of any plan year beginning in— The applicable percentage is— 1999 or 2000 155 2001 or 2002 160 2003 or 2004 165 2005 and succeeding years 170”. (b) Amendment to ERISA.—Section 302(c)(7) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1082(c)(7)) is amended— (A) by striking “150 percent” in subparagraph (A)(i)(I) and inserting “the applicable percentage”, and (B) by adding at the end the following: “(F) Applicable percentage.—For purposes of subparagraph (A)(i)(I), the applicable percentage shall be determined in accordance with the following table: “In the case of any plan year beginning in— The applicable percentage is— 1999 or 2000 155 2001 or 2002 160 2003 or 2004 165 2005 and succeeding years 170”. (c) Special Amortization Rule.— (1) Code amendment.—Section 412(b)(2) is amended by striking “and” at the end of subparagraph (C), by striking the period at the end of subparagraph (D) and inserting , and”, and by inserting after subparagraph (D) the following: “(E) the amount necessary to amortize in equal annual installments (until fully amortized) over a period of 20 years the contributions which would be required to be 111 STAT. 1070made under the plan but for the provisions of subsection (c)(7)(A)(i)(I)”. (2) ERISA amendment.—Section 302(b)(2) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1082(b)(2)) is amended by striking “and” at the end of subparagraph (C), by striking the period at the end of subparagraph (D) and inserting “, and”, and by inserting after subparagraph (D) the following: “(E) the amount necessary to amortize in equal annual installments (until fully amortized) over a period of 20 years the contributions which would be required to be made under the plan but for the provisions of subsection (c)(7)(A)(i)(I).”. (3) Conforming amendments.— (A) Section 412(c)(7)(D) is amended by adding “and” at the end of clause (i), by striking and” at the end of clause (ii) and inserting a period, and by striking clause (iii). (B) Section 302(c)(7)(D) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1082(c)(7)(D)) is amended by adding “and” at the end of clause (i), by striking “, and” at the end of clause (ii) and inserting a period, and by striking clause (iii). (d) Effective Dates.— (1) In general.—The amendments made by this section shall apply to plan years beginning after December 31, 1998. (2) Special rule for unamortized balances under existing law.—The unamortized balance (as of the close of the plan year preceding the plan’s first year beginning in 1999) of any amortization base established under section 412(c)(7)(D)(iii) of such Code and section 302(c)(7)(D)(iii) of such Act (as repealed by subsection (c)(3)) for any plan year beginning before 1999 shall be amortized in equal annual installments (until fully amortized) over a period of years equal to the excess of— (A) 20 years, over (B) the number of years since the amortization base was established.