Page:United States Statutes at Large Volume 101 Part 2.djvu/1129

 PUBLIC LAW 100-203—DEC. 22, 1987

101 STAT. 1330-335

"(A) IN GENERAL.—The unfunded new liability amount with respect to any plan for any plan year is the applicable percentage of the unfunded new liability. "(B) UNFUNDED NEW LIABILITY.—The term 'unfunded new liability' means the unfunded current liability of the plan for the plan year determined without regard to— "(i) the unamortized portion of the unfunded old liability, and "(ii) the liability with respect to any unpredictable contingent event benefits (without regard to whether the event has occurred). "(C) APPLICABLE PERCENTAGE.—The term 'applicable percentage' means, with respect to any plan year, 30 percent, reduced by the product of— "(i).25 multiplied by "(ii) the number of percentage points (if any) by which the funded current liability percentage exceeds 35 percent. "(5) UNPREDICTABLE CONTINGENT EVENT AMOUNT.—

"(A) IN GENERAL.—The unpredictable contingent event amount with respect to a plan for any plan year is an amount equal to the greater of— "(i) the applicable percentage of the product of— "(I) 100 percent, reduced (but not below zero) by the funded current liability percentage for the plan year, multiplied by "(II) the amount of unpredictable contingent event benefits paid during the plan year, including (except as provided by the Secretary) any payment for the purchase of an annuity contract for a participant or beneficiary with respect to such '; benefits, or "(ii) the amount which would be determined for the plan year if the unpredictable contingent event benefit liabilities were amortized in equal annual installments over 7 plan years (beginning with the plan year in which such event occurs). "(B) APPLICABLE PERCENTAGE.— "In the case of plan years beginning in: 1989 and 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 and thereafter

The applicable percentage is: 5 10 15 20 30 40 50 60 70 80 90 100.

"(C) PARAGRAPH NOT TO APPLY TO EXISTING BENEFITS.—

This paragraph shall not apply to unpredictable contingent event benefits (and liabilities attributable thereto) for which the event occurred before October 17, 1987. "(D)

SPECIAL RULE FOR FIRST YEAR OF AMORTIZATION.—

Unless the employer elects otherwise, the amount deter-

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