Page:United States Statutes at Large Volume 101 Part 2.djvu/1135

 PUBLIC LAW 100-203—DEC. 22, 1987

101 STAT. 1330-341

The term 'unpredictable contingent event benefit* means any benefit contingent on an event other than— "(I) age, service, compensation, death, or disability, or "(II) an event which is reasonably and reliably predictable (as determined by the Secretary of the Treasury). "(C) INTEREST RATES USED.—The rate of interest used to determine current liability shall be the rate of interest used under subsection (b)(5).

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"(D) CERTAIN SERVICE DISREGARDED.—

"(i) IN GENERAL.—In the case of a participant to whom this subparagraph applies, only the applicable percentage of the years of service before such individual became a participant shall be taken into account in computing the current liability of the plan. "(ii) APPLICABLE PERCENTAGE.—For purposes of this subparagraph, the applicable percentage shall be determined as follows: "If the years of participation are: 1 2 8 4 5 or more "(iii) PARTICIPANTS TO WHOM

The applicable percentage is: 20 40 60 80 100. SUBPARAGRAPH AP-

PLIES.—This subparagraph shall apply to any participant who, at the time of becoming a participant— "(I) has not accrued any other benefit under any defined benefit plan (whether or not terminated) maintained by the employer or a member of the same controlled group of which the employer is a member, and "(II) who first becomes a participant under the plan in a plan year beginning after December 31, 1987. "(8) OTHER DEFINITIONS.—For purposes of this subsection— "(A) UNFUNDED CURRENT LIABILITY.—The term 'unfunded current liability' means, with respect to any plan year, the excess (if any) of— "(i) the current liability under the plan, over "(ii) value of the plan's assets determined under subsection (c)(2) reduced by any credit balance in the funding standard account. "(B) FUNDED CURRENT LIABILITY PERCENTAGE.—The term 'funded current liability percentage' means, with respect to any plan year, the percentage which— "(i) the amount determined under subparagraph (A)(ii), is of "(ii) the current liability under the plan. "(C) CONTROLLED GROUP.—The term 'controlled group' means any group treated as a single employer under subsections^"^ (b), (c), (m), and (o) of section 414 of the Internal Revenue Code of 1986. "(D) ADJUSTMENTS TO PREVENT OMISSIONS AND DUPLICA-

TIONS.—The Secretary of the Treasury shall provide such adjustments in the unfunded old liability amount, the un'Copy read "subsection".

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