INCREASE IN EMPLOYER REVERSION TAX.

SEC. 6069. INCREASE IN EMPLOYER REVERSION TAX. (a) In General.—Section 4980(a) of the 1986 Code is amended by striking out “10 percent” and inserting in lieu thereof “15 percent”. (b) Effective Date.— (1) In general.—The amendment made by subsection (a) shall apply to reversions occurring on or after October 21, 1988. (2) Exception.— The amendment made by subsection (a) shall not apply to any reversion on or after October 21, 1988, pursuant to a plan termination if— (A) with respect to plans subject to title IV of the Employee Retirement Income Security Act of 1974, a notice of intent to terminate required under such title was provided to participants (or if no participants, to the Pension Benefit Guaranty Corporation) before October 21, 1988, (B) with respect to plans subject to title I of such Act, a notice of intent to reduce future accruals required under section 204(h) of such Act was provided to participants in connection with the termination before October 21, 1988, (C) with respect to plans not subject to title I or IV of such Act, the Board of Directors of the employer approved the termination or the employer took other binding action before October 21, 1988, or (D) such plan termination was directed by a final order of a court of competent jurisdiction entered before October 21, 1988, and notice of such order was provided to participants before such date.