PBGC PREMIUMS FOR SMALL PLANS.

SEC. 405. PBGC PREMIUMS FOR SMALL PLANS.(a) Small Plans.—Paragraph (3) of section 4006(a) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1306(a)) is amended—120 STAT. 929(1) by striking “The additional” in subparagraph (E)(i) and inserting “Except as provided in subparagraph (H), the additional”, and(2) by inserting after subparagraph (G) the following new subparagraph:“(H)(i) In the case of an employer who has 25 or fewer employees on the first day of the plan year, the additional premium determined under subparagraph (E) for each participant shall not exceed $5 multiplied by the number of participants in the plan as of the close of the preceding plan year.“(ii) For purposes of clause (i), whether an employer has 25 or fewer employees on the first day of the plan year is determined by taking into consideration all of the employees of all members of the contributing sponsor’s controlled group. In the case of a plan maintained by two or more contributing sponsors, the employees of all contributing sponsors and their controlled groups shall be aggregated for purposes of determining whether the 25-or-fewer-employees limitation has been satisfied.”(b) Effective Dates.—The amendment made by this section shall apply to plan years beginning after December 31, 2006.