(a) Maintenance of account A plan which uses a funding method that requires contributions in all years not less than those required under the entry age normal funding method may maintain an alternative minimum funding standard account for any plan year. Such account shall be credited and charged solely as provided in this section.
(b) Operation of account For a plan year the alternative minimum funding standard accounts shall be—
(1) charged with the sum of—
(A) the lesser of normal cost under the funding method used under the plan or normal cost determined under the unit credit method,
(B) the excess, if any, of the present value of accrued benefits under the plan over the fair market value of the assets, and
(C) an amount equal to the excess, if any, of credits to the alternative minimum funding standard account for all prior plan years over charges to such account for all such years, and
(2) credited with the amount considered contributed by the employer to or under the plan (within the meaning of
section 1082(c)(10) of this title) for the plan year.
(c) Interest The alternative minimum funding standard account (and items therein) shall be charged or credited with interest in the manner provided under
section 1082(b)(5) of this title with respect to the funding standard account.
Source credit, amendments & notes
(Pub. L. 93–406, title I, §305, Sept. 2, 1974, 88 Stat. 873.)
Repeal of Section
Pub. L. 109–280, title I, §101(a), (d), Aug. 17, 2006, 120 Stat. 784, 789, provided that, applicable to plan years beginning after 2007, this section is repealed.
Enactment of Section
Pub. L. 109–280, title II, §202(a), (f), Aug. 17, 2006, 120 Stat. 868, 885, provided that, applicable with respect to plan years beginning after 2007, with special rules for certain notices and certain restored benefits, a new section 1085 of this title is enacted to read as follows:
Effective and Termination Dates
New section 1085 of this title, enacted by section 202(a) of Pub. L. 109–280, applicable with respect to plan years beginning after 2007, with special rules for certain notices and certain restored benefits, see section 202(f) of Pub. L. 109–280, set out as an Effective and Termination Dates of 2006 Amendment note under section 1082 of this title.
New section 1085 of this title, enacted by section 202(a) of Pub. L. 109–280, inapplicable to plan years beginning after Dec. 31, 2014, with exception for certain funding improvement and rehabilitation plans, see section 221(c) of Pub. L. 109–280, set out as an Effective and Termination Dates of 2006 Amendment note under section 412 of Title 26, Internal Revenue Code.
Special Rule for Certain Benefits Funded Under an Agreement Approved by the Pension Benefit Guaranty Corporation
For applicability of new section 1085 of this title, enacted by section 202(a) of Pub. L. 109–280, to a multiemployer plan that is a party to an agreement that was approved by the Pension Benefit Guaranty Corporation prior to June 30, 2005, and that increases benefits and provides for certain withdrawal liability rules, see section 206 of Pub. L. 109–280, set out as a note under section 412 of Title 26, Internal Revenue Code.
ERISA § 305 (29 U.S.C. § 1085) — Additional funding rules for multiemployer plans in endangered status or critical status · USC 1994 ed., current through 1995-01-04 · https://pensionresource.website/EAMain?content=EAMain.Law&id=usc29-1085&asof=1995-01-04 · printed Oct 16, 2026