Page:United States Statutes at Large Volume 120.djvu/826

 PUBLIC LAW 109–280—AUG. 17, 2006

120 STAT. 795

‘‘(i) IN GENERAL.—As of the first day of each plan year beginning after 2008, the prefunding balance of a plan shall be increased by the amount elected by the plan sponsor for the plan year. Such amount shall not exceed the excess (if any) of— ‘‘(I) the aggregate total of employer contributions to the plan for the preceding plan year, over— ‘‘(II) the minimum required contribution for such preceding plan year. ‘‘(ii) ADJUSTMENTS FOR INTEREST.—Any excess contributions under clause (i) shall be properly adjusted for interest accruing for the periods between the first day of the current plan year and the dates on which the excess contributions were made, determined by using the effective interest rate for the preceding plan year and by treating contributions as being first used to satisfy the minimum required contribution. ‘‘(iii) CERTAIN CONTRIBUTIONS NECESSARY TO AVOID BENEFIT LIMITATIONS DISREGARDED.—The excess described in clause (i) with respect to any preceding plan year shall be reduced (but not below zero) by the amount of contributions an employer would be required to make under paragraph (1), (2), or (4) of section 206(g) to avoid a benefit limitation which would otherwise be imposed under such paragraph for the preceding plan year. Any contribution which may be taken into account in satisfying the requirements of more than 1 of such paragraphs shall be taken into account only once for purposes of this clause. ‘‘(C) DECREASE.—The prefunding balance of a plan shall be decreased (but not below zero) by— ‘‘(i) as of the first day of each plan year after 2008, the amount of such balance credited under paragraph (2) (if any) in reducing the minimum required contribution of the plan for the preceding plan year, and ‘‘(ii) as of the time specified in paragraph (5)(A), any reduction in such balance elected under paragraph (5). ‘‘(7) FUNDING STANDARD CARRYOVER BALANCE.— ‘‘(A) IN GENERAL.—A funding standard carryover balance maintained by a plan shall consist of a beginning balance determined under subparagraph (B), decreased to the extent provided in subparagraph (C), and adjusted further as provided in paragraph (8). ‘‘(B) BEGINNING BALANCE.—The beginning balance of the funding standard carryover balance shall be the positive balance described in paragraph (1)(B)(ii)(II). ‘‘(C) DECREASES.—The funding standard carryover balance of a plan shall be decreased (but not below zero) by— ‘‘(i) as of the first day of each plan year after 2008, the amount of such balance credited under paragraph (2) (if any) in reducing the minimum required contribution of the plan for the preceding plan year, and

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