§842. Transfer of excess pension assets to multiemployer health plan

Pension Protection Act of 2006

Title VIII Pension Related Revenue Provisions

Subtitle D Health and Medical Benefits

(a) IN GENERAL.-Section 420 of the Internal Revenue Code of 1986 is amended-

(a)(1) by striking "(other than a multiemployer plan)" in subsection (a), and

(a)(2) by adding at the end of subsection (e) the following new paragraph:

"(5) APPLICATION TO MULTIEMPLOYER PLANS.-In the case of a multiemployer plan, this section shall be applied to any such plan-

"(A) by treating any reference in this section to an employer as a reference to all employers maintaining the plan (or, if appropriate, the plan sponsor), and

"(B) in accordance with such modifications of this section (and the provisions of this title relating to this section) as the Secretary determines appropriate to reflect the fact the plan is not maintained by a single employer.".

(b) EFFECTIVE DATE.-The amendment made by this section shall apply to transfers made in taxable years beginning after December 31, 2006.