Page:United States Statutes at Large Volume 120.djvu/883

 120 STAT. 852

PUBLIC LAW 109–280—AUG. 17, 2006 ‘‘(j)

TERMS RELATING TO FUNDING TARGET ATTAINMENT PERCENTAGE.—For purposes of this section— ‘‘(1) IN GENERAL.—The term ‘funding target attainment percentage’ has the same meaning given such term by section 430(d)(2). ‘‘(2) ADJUSTED FUNDING TARGET ATTAINMENT PERCENTAGE.—The term ‘adjusted funding target attainment percentage’ means the funding target attainment percentage which is determined under paragraph (1) by increasing each of the amounts under subparagraphs (A) and (B) of section 430(d)(2) by the aggregate amount of purchases of annuities for employees other than highly compensated employees (as defined in section 414(q)) which were made by the plan during the preceding 2 plan years. ‘‘(3) APPLICATION TO PLANS WHICH ARE FULLY FUNDED WITHOUT REGARD TO REDUCTIONS FOR FUNDING BALANCES.— ‘‘(A) IN GENERAL.—In the case of a plan for any plan year, if the funding target attainment percentage is 100 percent or more (determined without regard to this paragraph and without regard to the reduction in the value of assets under section 430(f)(4)(A)), the funding target attainment percentage for purposes of paragraph (1) shall be determined without regard to such reduction. ‘‘(B) TRANSITION RULE.—Subparagraph (A) shall be applied to plan years beginning after 2007 and before 2011 by substituting for ‘100 percent’ the applicable percentage determined in accordance with the following table:

Applicability.

‘‘In the case of a plan year

The applicable beginning in calendar year: percentage is 2008 ............................................................................................ 92 2009 ............................................................................................ 94 2010 ............................................................................................ 96.

‘‘(C) LIMITATION.—Subparagraph (B) shall not apply with respect to any plan year after 2008 unless the funding target attainment percentage (determined without regard to this paragraph) of the plan for each preceding plan year after 2007 was not less than the applicable percentage with respect to such preceding plan year determined under subparagraph (B). ‘‘(k) SPECIAL RULE FOR 2008.—For purposes of this section, in the case of plan years beginning in 2008, the funding target attainment percentage for the preceding plan year may be determined using such methods of estimation as the Secretary may provide.’’. (2) CLERICAL AMENDMENT.—The table of parts for subchapter D of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new item:

26 USC prec. 401.

‘‘PART III—RULES RELATING

26 USC 436 note.

VerDate 14-DEC-2004

10:20 Jul 12, 2007

Jkt 059194

TO

MINIMUM FUNDING STANDARDS LIMITATIONS’’.

AND

BENEFIT

(b) EFFECTIVE DATE.— (1) IN GENERAL.—The amendments made by this section shall apply to plan years beginning after December 31, 2007. (2) COLLECTIVE BARGAINING EXCEPTION.—In the case of a plan maintained pursuant to 1 or more collective bargaining agreements between employee representatives and 1 or more employers ratified before January 1, 2008, the amendments

PO 00001

Frm 00850

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL001.109

APPS06

PsN: PUBL001

�