September 2, 1974 - 95 Pub. Law 93-406 88 STAT. 923 (2) Paragraph (6) of section 404 (a) (relating to taxpayers 26 USC 404. on accrual basis) is amended to read as follows: "(6) TIME WHEN CONTRIBUTIONS DEEMED MADE.-For purposes of paragraphs (1), (2), and (3), a taxpayer shall be deemed to have made a payment on the last day of the preceding taxable year if the payment is on account of such taxable year and is made not later than the time prescribed by law for filing the return for such taxable year (including extensions thereof)." (3) Paragraph (7) of section 404 (a) (relating to limit on Supra. deductions) is amended to read as follows: "(7) LIMIT ON DEDUCTIONS.s.-If amounts are deductible under paragraphs (1) and (3), or (2) and (3), or (1), (2), and (3), in connection with two or more trusts, or one or more trusts and an annuity plan, the total amount deductible in a taxable year under such trusts and plans shall not exceed the greater of 25 percent of the compensation otherwise paid or accrued during the taxable year to the beneficiaries of the trusts or plans, or the amount of contributions made to or under the trusts or plans to the extent such contributions do not exceed the amount of employer contributions necessary to satisfy the minimum funding standard provided by section 412 for the plan year which ends with or Ante, p. 914. within such taxable year (or for any prior plan year). In addition, any amount paid into such trust or under such annuity plans in any taxable year in excess of the amount allowable with respect to such year under the preceding provisions of this paragraph shall be deductible in the succeeding taxable years in order of time, but the amount so deductible under this sentence in any one such succeeding taxable year together with the amount allowable under the first sentence of this paragraph shall not exceed 25 percent of the compensation otherwise paid or accrued during such taxable years to the beneficiaries under the trusts or plans. This paragraph shall not have the effect of reducing the amount otherwise deductible under paragraphs (1), (2), and (3), if no employee is a beneficiary under more than one trust or a trust and an annuity plan." (d) ALTERNATIVE AMORTIZATION METHOD FOR CERTAIN MULTI- 26 USC 412 EMPLOYER PLANS. note. (1) GENERAL RULE. In the case of any multiemployer plan (as defined in section 414(f) of the Internal Revenue Code of 1954) Post, p. 925. to which section 412 of such Code applies, if (A) on January 1, 1974, the contributions under the plan Ante, p. 914. were based on a percentage of pay, (B) the actuarial assumptions with respect to pay are reasonably related to past and projected experience, and (C) the rates of interest under the plan are determined on the basis of reasonable actuarial assumptions, the plan may elect (in such manner and at such time as may be provided under regulations prescribed by the Secretary of the Treasury or his delegate) to fund the unfunded past service liability under the plan existing as of the date 12 months following the first date on which such section 412 first applies to the plan by charging the funding standard account with an equal annual percentage of the aggregate pay of all participants in the plan in lieu of the level dollar charges to such account required under clauses (i), (ii), and (iii) of section 412(b) (2) (B) of such Code and section 302 (b) (2) (B) (i), (ii), and (iii) of this Act. (2) LIMITATION.-In the case of a plan which makes an election under paragraph (1), the aggregate of the charges required under such paragraph for a plan year shall not be less than the interest 88 STAT. 924 Ante, p. 914. Ante, p. 898. Post, p. 938; Ante, p. 920. 26 USC 404. Pub. Law 93-406 - 96 September 2, 1974 on the unfunded past service liabilities described in clauses (i), (ii), and (iii) of section 412(b)(2)(B) of the Internal Revenue Code of 1954. SEC. 1014. COLLECTIVELY BARGAINED PLANS, ETC. Subpart B of part I of subchapter D of chapter 1 (relating to special rules) is amended by inserting after section 412 the following new section: "SEC. 413. COLLECTIVELY BARGAINED PLANS, ETC. "(a) APPLICATION OF SUBSECTION (b).-Subsection (b) applies to"(1) a plan maintained pursuant to an agreement which the Secretary of Labor finds to be a collective-bargaining agreement between employee representatives and one or more employers, and "(2) each trust which is a part of such plan. "(b) GENERAL RULE. If this subsection applies to a plan, notwithstanding any other provision of this title "(1) PARTICIPATION.-Section 410 shall be applied as if all employees of each of the employers who are parties to the collective bargaining agreement and who are subject to the same benefit computation formula under the plan were employed by a single employer. "(2) DISCRIMINATION, ETC.-Sections 401(a) (4) and 411(d) (3) shall be applied as if all participants who are subject to the same benefit computation formula and who are employed by employers who are parties to the collective bargaining agreement were employed by a single employer. (3) EXCLUSIVE BENEFIT. For purposes of section 401(a), in determining whether the plan of an employer is for the exclusive benefit of his employees and their beneficiaries, all plan participants shall be considered to be his employees. "(4) VESTING.-Section 411 (other than subsection (d)(3)) shall be applied as if all employers who have been parties to the collective-bargaining agreement constituted a single employer, except that the application of any rules with respect to breaks in service shall be made under regulations prescribed by the Secretary of Labor. (5) FUNDING. The minimum funding standard provided by section 412 shall be determined as if all participants in the plan were employed by a single employer. "(6) LIABILITY FOR FUNDING TAX.-For a plan year the liability under section 4971 of each employer who is a party to the collective bargaining agreement shall be determined in a reasonable manner not inconsistent with regulations prescribed by the Secretary or his delegate- "(A) first on the basis of their respective delinquencies in meeting required employer contributions under the plan, and "(B) then on the basis of their respective liabilities for contributions under the plan. "(7) DEDUCTION LIMITATIONS. Each applicable limitation provided by section 404(a) shall be determined as if all participants in the plan were employed by a single employer. The amounts contributed to or under the plan by each employer who is a party to the agreement, for the portion of his taxable year which is included within such a plan year, shall be considered not to exceed such a limitation if the anticipated employer contributions for such plan year (determined in a manner consistent with the manner in which actual employer contributions for such plan year are determined) do not exceed such limitation. If such anticipated contributions exceed such a limitation, the portion of each such employer's contributions which is not deductible under section September 2, 1974 - 97 Pub. Law 93-406 88 STAT. 925 404 shall be determined in accordance with regulations prescribed 26 USC 404. by the Secretary or his delegate. "(8) EMPLOYEES OF LABOR UNIONS.-For purposes of this subsection, employees of employee representatives shall be treated as employees of an employer described in subsection (a) (1) if such representatives meet the requirements of sections 401(a) (4) and 410 with respect to such employees. Post, p. 938; "(c) PLANS MAINTAINED BY MORE THAN ONE EMPLOYER.-In the Ante, p. 898. case of a plan maintained by more than one employer "(1) PARTICIPATION.-Section 410(a) shall be applied as if all employees of each of the employers who maintain the plan were employed by a single employer. "(2) EXCLUSIVE BENEFIT.-For purposes of section 401(a), in determining whether the plan of an employer is for the exclusive benefit of his employees and their beneficiaries all plan participants shall be considered to be his employees. "(3) VESTING.-Section 411 shall be applied as if all employers Ante, p. 901. who maintain the plan constituted a single employer, except that the application of any rules with respect to breaks in service shall be made under regulations prescribed by the Secretary of Labor. "(4) FUNDING. The minimum funding standard provided by section 412 shall be determined as if all participants in the plan Ante, p. 914. were employed by a single employer. "(5) LIABILITY FOR FUNDING TAX.-For a plan year the liability under section 4971 of each employer who maintains the plan shall Ante, p. 920. be determined in a reasonable manner not inconsistent with regulations prescribed by the Secretary or his delegate "(A) first on the basis of their respective delinquencies in meeting required employer contributions under the plan, and "(B) then on the basis of their respective liabilities for contributions under the plan. "(6) DEDUCTION LIMITATIONS.-Each applicable limitation provided by section 404 (a) shall be determined as if all participants in the plan were employed by a single employer. The amounts contributed to or under the plan by each employer who maintains the plan, for the portion of this taxable year which is included within such a plan year, shall be considered not to exceed such a limitation if the anticipated employer contributions for such plan year (determined in a reasonable manner not inconsistent with regulations prescribed by the Secretary or his delegate) do not exceed such limitation. If such anticipated contributions exceed such a limitation, the portion of each such employer's contributions which is not deductible under section 404 shall be determined in accordance with regulations prescribed by the Secretary or his delegate. Allocations of amounts under paragraphs (4), (5), and (6), among the employers maintaining the plan, shall not be inconsistent with regulations prescribed for this purpose by the Secretary or his delegate." SEC. 1015. DEFINITIONS AND SPECIAL RULES. Subpart B of part I of subchapter D of chapter 1 is amended by inserting after section 413 the following new section: "SEC. 414. DEFINITIONS AND SPECIAL RULES. "(a) SERVICE FOR PREDECESSOR EMPLOYER.-For purposes of this part Ante, p. 924. 88 STAT. 926 26 USC 401. Ante, pp. 898, 901; Post, p. 979. 26 USC 1563. Ante, p. 920. 22 USC 288 note. 26 USC 501. Pub. Law 93-406 - 98 September 2, 1974 "(1) in any case in which the employer maintains a plan of a predecessor employer, service for such predecessor shall be treated as service for the employer, and "(2) in any case in which the employer maintains a plan which is not the plan maintained by a predecessor employer, service for such predecessor shall, to the extent provided in regulations prescribed by the Secretary or his delegate, be treated as service for the employer. "(b) EMPLOYEES OF CONTROLLED GROUP OF CORPORATIONS.-For purposes of sections 401, 410, 411, and 415, all employees of all corporations which are members of a controlled group of corporations (within the meaning of section 1563 (a), determined without regard to section 1563 (a) (4) and (e)(3) (C)) shall be treated as employed by a single employer. With respect to a plan adopted by more than one such corporation, the minimum funding standard of section 412, the tax imposed by section 4971, and the applicable limitations provided by section 404 (a) shall be determined as if all such employers were a single employer, and allocated to each employer in accordance with regulations prescribed by the Secretary or his delegate. (c) EMPLOYEES OF PARTNERSHIPS, PROPRIETORSHIPS, ETC., WHICH ARE UNDER COMMON CONTROL.-For purposes of sections 401, 410, 411, and 415, under regulations prescribed by the Secretary or his delegate, all employees of trades or businesses (whether or not incorporated) which are under common control shall be treated as employed by a single employer. The regulations prescribed under this subsection shall be based on principles similar to the principles which apply in the case of subsection (b). "(d) GOVERNMENTAL PLAN.-For purposes of this part, the term 'governmental plan' means a plan established and maintained for its employees by the Government of the United States, by the government of any State or political subdivision thereof, or by any agency or instrumentality of any of the foregoing. The term 'governmental plan' also includes any plan to which the Railroad Retirement Act of 1935 or 1937 applies and which is financed by contributions required under that Act and any plan of an international organization which is exempt from taxation by reason of the International Organizations Immunities Act (59 Stat. 669). "(e) CHURCH PLAN. "(1) IN GENERAL.-For purposes of this part the term 'church plan' means "(A) a plan established and maintained for its employees by a church or by a convention or association of churches which is exempt from tax under section 501, or "(B) a plan described in paragraph (3). "(2) CERTAIN UNRELATED BUSINESS OR MULTIEMPLOYER PLANS.— The term 'church plan' does not include a plan— "(A) which is established and maintained primarily for the benefit of employees (or their beneficiaries) of such church or convention or association of churches who are employed in connection with one or more unrelated trades or businesses (within the meaning of section 513), or "(B) which is a plan maintained by more than one employer, if one or more of the employers in the plan is not a church (or a convention or association of churches) which is exempt from tax under section 501. "(3) SPECIAL TEMPORARY RULE FOR CERTAIN CHURCH AGENCIES UNDER CHURCH PLAN. "(A) Notwithstanding the provisions of paragraph (2)(B), a plan in existence on January 1, 1974, shall be September 2, 1974 - 99 Pub. Law 93-406 88 STAT. 927 treated as a church plan if it is established and maintained "(B) Subparagraph (A) shall not apply to any plan main- "(C) Subparagraph (A) shall not apply with respect to any plan for any plan year beginning after December 31, 1982. "(f) MULITIEMPLOYER PLAN.— "(1) IN GENERAL.-For purposes of this part, the term 'multiemployer plan' means a plan "(A) to which more than one employer is required to contribute, "(B) which is maintained pursuant to a collective-bargaining agreement between employee representatives and more than one employer, "(C) under which the amount of contributions made under the plan for a plan year by each employer making such contributions is less than 50 percent of the aggregate amount of contributions made under the plan for that plan year by all employers making such contributions, (D) under which benefits are payable with respect to each "(E) which satisfies such other requirements as the Secre- "(A) If a plan is a multiemployer plan within the mean- 26 USC 501. "(B) All corporations which are members of a controlled group of corporations (within the meaning of section 1563 26 USC 1563. (a), determined without regard to section 1563 (e) (3) (C)) shall be deemed to be one employer. "(g) PLAN ADMINISTRATOR.-For purposes of this part, the term 'plan administrator' means "(1) the person specifically so designated by the terms of the instrument under which the plan is operated; "(2) in the absence of a designation referred to in paragraph (1) "(A) in the case of a plan maintained by a single employer, such employer, "(B) in the case of a plan maintained by two or more employers or jointly by one or more employers and one or |