Page:United States Statutes at Large Volume 120.djvu/893

 120 STAT. 862

‘‘(2) VALUATION OF ASSETS.— ‘‘(A) IN GENERAL.—For purposes of this part, the value of the plan’s assets shall be determined on the basis of any reasonable actuarial method of valuation which takes into account fair market value and which is permitted under regulations prescribed by the Secretary of the Treasury. ‘‘(B) ELECTION WITH RESPECT TO BONDS.—The value of a bond or other evidence of indebtedness which is not in default as to principal or interest may, at the election of the plan administrator, be determined on an amortized basis running from initial cost at purchase to par value at maturity or earliest call date. Any election under this subparagraph shall be made at such time and in such manner as the Secretary of the Treasury shall by regulations provide, shall apply to all such evidences of indebtedness, and may be revoked only with the consent of such Secretary. ‘‘(3) ACTUARIAL ASSUMPTIONS MUST BE REASONABLE.—For purposes of this section, all costs, liabilities, rates of interest, and other factors under the plan shall be determined on the basis of actuarial assumptions and methods— ‘‘(A) each of which is reasonable (taking into account the experience of the plan and reasonable expectations), and ‘‘(B) which, in combination, offer the actuary’s best estimate of anticipated experience under the plan. ‘‘(4) TREATMENT OF CERTAIN CHANGES AS EXPERIENCE GAIN OR LOSS.—For purposes of this section, if— ‘‘(A) a change in benefits under the Social Security Act or in other retirement benefits created under Federal or State law, or ‘‘(B) a change in the definition of the term ‘wages’ under section 3121 of the Internal Revenue Code of 1986, or a change in the amount of such wages taken into account under regulations prescribed for purposes of section 401(a)(5) of such Code, results in an increase or decrease in accrued liability under a plan, such increase or decrease shall be treated as an experience loss or gain. ‘‘(5) FULL FUNDING.—If, as of the close of a plan year, a plan would (without regard to this paragraph) have an accumulated funding deficiency in excess of the full funding limitation— ‘‘(A) the funding standard account shall be credited with the amount of such excess, and ‘‘(B) all amounts described in subparagraphs (B), (C), and (D) of subsection (b) (2) and subparagraph (B) of subsection (b)(3) which are required to be amortized shall be considered fully amortized for purposes of such subparagraphs. ‘‘(6) FULL-FUNDING LIMITATION.— ‘‘(A) IN GENERAL.—For purposes of paragraph (5), the term ‘full-funding limitation’ means the excess (if any) of— ‘‘(i) the accrued liability (including normal cost) under the plan (determined under the entry age normal funding method if such accrued liability cannot be

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