automatic extension of amortization period
UNDECIDED
0 of 2 settled
- 1ALL OF
If the plan sponsor of a multiemployer plan—
“the plan sponsor of a multiemployer plan” Opening words“submits to the Secretary an application for an extension of the period of years required to amortize any unfunded liability described in any clause of subsection (b)(2)(B) or described in subsection (b)(4), and” § 431(d)(1)(A)(i)“includes with the application a certification by the plan’s actuary described in subparagraph (B),” § 431(d)(1)(A)(ii) needs Step 2 certification described in this subparagraph UNDECIDEDthe Secretary shall extend the amortization period for the period of time (not in excess of 5 years) specified in the application. Such extension shall be in addition to any extension under paragraph (2).
- 2
certification described in this subparagraph
ALL OFA certification with respect to a multiemployer plan is described in this subparagraph if the plan’s actuary certifies that, based on reasonable assumptions—
“if the plan’s actuary certifies that, based on reasonable assumptions—” Opening words“Reasonable” implies facts and circumstances. No regulation cites this provision (eCFR, Oct 19, 2026)
“absent the extension under subparagraph (A), the plan would have an accumulated funding deficiency in the current plan year or any of the 9 succeeding plan years,” § 431(d)(1)(B)(i)“the plan sponsor has adopted a plan to improve the plan’s funding status,” § 431(d)(1)(B)(ii)“the plan is projected to have sufficient assets to timely pay expected benefits and anticipated expenditures over the amortization period as extended, and” § 431(d)(1)(B)(iii)“the notice required under paragraph (3)(A) has been provided.” § 431(d)(1)(B)(iv)