unpredictable contingent event benefit
(1) Funding-based limitation on shutdown benefits and other unpredictable contingent event benefits under single-employer plans (A) In general If a participant of a defined benefit plan which is a single-employer plan is entitled to an unpredictable contingent event benefit payable with respect to any event occurring during any plan year, the plan shall provide that such benefit may not be provided if the adjusted funding target attainment percentage for such plan year— (i) is less than 60 percent, or (ii) would be less than 60 percent taking into account such occurrence. (B) Exemption Subparagraph (A) shall cease to apply with respect to any plan year, effective as of the first day of the plan year, upon payment by the plan sponsor of a contribution (in addition to any minimum required contribution under section 1083 of this title ) equal to— (i) in the case of subparagraph (A)(i), the amount of the increase in the funding target of the plan (under section 1083 of this title ) for the plan year attributable to the occurrence referred to in subparagraph (A), and (ii) in the case of subparagraph (A)(ii), the amount sufficient to result in an adjusted funding target attainment percentage of 60 percent. (C) Unpredictable contingent event benefit For purposes of this paragraph, the term “unpredictable contingent event benefit” means any benefit payable solely by reason of— (i) a plant shutdown (or similar event, as determined by the Secretary of the Treasury), or (ii) an event other than the attainment of any age, performance of any service, receipt or derivation of any compensation, or occurrence of death or disability.