Page:United States Statutes at Large Volume 120.djvu/951

 120 STAT. 920 29 USC 1082.

PUBLIC LAW 109–280—AUG. 17, 2006

(c) PLAN AMENDMENTS.—Clause (ii) of section 101(c)(2)(A) of the Pension Funding Equity Act of 2004 is amended by striking ‘‘2006’’ and inserting ‘‘2008’’. SEC. 302. INTEREST RATE ASSUMPTION FOR DETERMINATION OF LUMP SUM DISTRIBUTIONS.

(a) AMENDMENT TO EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974.—Paragraph (3) of section 205(g) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1055(g)(3)) is amended to read as follows: ‘‘(3)(A) For purposes of paragraphs (1) and (2), the present value shall not be less than the present value calculated by using the applicable mortality table and the applicable interest rate. ‘‘(B) For purposes of subparagraph (A)— ‘‘(i) The term ‘applicable mortality table’ means a mortality table, modified as appropriate by the Secretary of the Treasury, based on the mortality table specified for the plan year under subparagraph (A) of section 303(h)(3) (without regard to subparagraph (C) or (D) of such section). ‘‘(ii) The term ‘applicable interest rate’ means the adjusted first, second, and third segment rates applied under rules similar to the rules of section 303(h)(2)(C) for the month before the date of the distribution or such other time as the Secretary of the Treasury may by regulations prescribe. ‘‘(iii) For purposes of clause (ii), the adjusted first, second, and third segment rates are the first, second, and third segment rates which would be determined under section 303(h)(2)(C) if— ‘‘(I) section 303(h)(2)(D) were applied by substituting the average yields for the month described in clause (ii) for the average yields for the 24-month period described in such section, ‘‘(II) section 303(h)(2)(G)(i)(II) were applied by substituting ‘section 205(g)(3)(B)(iii)(II)’ for ‘section 302(b)(5)(B)(ii)(II)’, and ‘‘(III) the applicable percentage under section 303(h)(2)(G) were determined in accordance with the following table:

‘‘In the case of plan years beginning in: 2008 ........................................................................ 2009 ........................................................................ 2010 ........................................................................ 2011 ........................................................................

26 USC 417.

VerDate 14-DEC-2004

10:20 Jul 12, 2007

The applicable percentage is: 20 percent 40 percent 60 percent 80 percent.’’.

(b) AMENDMENT TO INTERNAL REVENUE CODE OF 1986.—Paragraph (3) of section 417(e) of the Internal Revenue Code of 1986 is amended to read as follows: ‘‘(3) DETERMINATION OF PRESENT VALUE.— ‘‘(A) IN GENERAL.—For purposes of paragraphs (1) and (2), the present value shall not be less than the present value calculated by using the applicable mortality table and the applicable interest rate. ‘‘(B) APPLICABLE MORTALITY TABLE.—For purposes of subparagraph (A), the term ‘applicable mortality table’ means a mortality table, modified as appropriate by the

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