Page:United States Statutes at Large Volume 118.djvu/627

 118 STAT. 597 PUBLIC LAW 108–218—APR. 10, 2004 (ii) by striking ‘‘subclause (I)’’ the second place it appears and inserting ‘‘such subclause’’. (C) CONFORMING AMENDMENT.—Subclause (I) of section 302(b)(5)(B)(ii) of such Act is amended by inserting ‘‘or (III)’’ after ‘‘subclause (II)’’. (2) DETERMINATION OF CURRENT LIABILITY.—Clause (i) of section 302(d)(7)(C) of such Act is amended by adding at the end the following new subclause: ‘‘(IV) SPECIAL RULE FOR 2004 AND 2005.—For plan years beginning in 2004 or 2005, notwith standing subclause (I), the rate of interest used to determine current liability under this subsection shall be the rate of interest under subsection (b)(5).’’. (3) CONFORMING AMENDMENT.—Paragraph (7) of section 302(e) of such Act is amended to read as follows: ‘‘(7) SPECIAL RULE FOR 2002.—In any case in which the interest rate used to determine current liability is determined under subsection (d)(7)(C)(i)(III), for purposes of applying para graphs (1) and (4)(B)(ii) for plan years beginning in 2002, the current liability for the preceding plan year shall be redeter mined using 120 percent as the specified percentage determined under subsection (d)(7)(C)(i)(II).’’. (4) PBGC.—Clause (iii) of section 4006(a)(3)(E) of such Act is amended by adding at the end the following new sub clause: ‘‘(V) In the case of plan years beginning after December 31, 2003, and before January 1, 2006, the annual yield taken into account under subclause (II) shall be the annual rate of interest determined by the Secretary of the Treasury on amounts invested conservatively in long term investment grade corporate bonds for the month preceding the month in which the plan year begins. For purposes of the preceding sentence, the Secretary of the Treasury shall determine such rate of interest on the basis of 2 or more indices that are selected periodically by the Secretary of the Treasury and that are in the top 3 quality levels available. The Secretary of the Treasury shall make the permissible range, and the indices and methodology used to determine the rate, publicly avail able.’’. (b) INTERNAL REVENUE CODE OF 1986.— (1) DETERMINATION OF PERMISSIBLE RANGE.— (A) IN GENERAL.—Clause (ii) of section 412(b)(5)(B) of the Internal Revenue Code of 1986 is amended by redesignating subclause (II) as subclause (III) and by inserting after subclause (I) the following new subclause: ‘‘(II) SPECIAL RULE FOR YEARS 2004 AND 2005.— In the case of plan years beginning after December 31, 2003, and before January 1, 2006, the term ‘permissible range’ means a rate of interest which is not above, and not more than 10 percent below, the weighted average of the rates of interest on amounts invested conservatively in long term investment grade corporate bonds during the 4 year period ending on the last day before the begin ning of the plan year. Such rates shall be deter mined by the Secretary on the basis of 2 or more 26 USC 412. Public information. 29 USC 1306. 29 USC 1082.

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