Page:United States Statutes at Large Volume 120.djvu/956

 PUBLIC LAW 109–280—AUG. 17, 2006

120 STAT. 925

of the Treasury may prescribe. Such election, once made, may be revoked only with the consent of such Secretary. (e) MINIMUM REQUIRED CONTRIBUTION.—In the case of an eligible plan with respect to which an election is made under subsection (a)(1)— (1) IN GENERAL.—In the case of any applicable plan year during the amortization period, the minimum required contribution shall be the amount necessary to amortize the unfunded liability of the plan, determined as of the first day of the plan year, in equal annual installments (until fully amortized) over the remainder of the amortization period. Such amount shall be separately determined for each applicable plan year. (2) YEARS AFTER AMORTIZATION PERIOD.—In the case of any plan year beginning after the end of the amortization period, section 302(a)(2)(A) of such Act and section 412(a)(2)(A) of such Code shall apply to such plan, but the prefunding balance and funding standard carryover balance as of the first day of the first of such years under section 303(f) of such Act and section 430(f) of such Code shall be zero. (3) DEFINITIONS.—For purposes of this section— (A) UNFUNDED LIABILITY.—The term ‘‘unfunded liability’’ means the unfunded accrued liability under the plan, determined under the unit credit funding method. (B) AMORTIZATION PERIOD.—The term ‘‘amortization period’’ means the 17-plan year period beginning with the first applicable plan year. (4) OTHER RULES.—In determining the minimum required contribution and amortization amount under this subsection— (A) the provisions of section 302(c)(3) of such Act and section 412(c)(3) of such Code, as in effect before the date of enactment of this section, shall apply, (B) a rate of interest of 8.85 percent shall be used for all calculations requiring an interest rate, and (C) the value of plan assets shall be equal to their fair market value. (5) SPECIAL RULE FOR CERTAIN PLAN SPINOFFS.—For purposes of subsection (b), if, with respect to any eligible plan to which this subsection applies— (A) any applicable plan year includes the date of the enactment of this Act, (B) a plan was spun off from the eligible plan during the plan year but before such date of enactment, the minimum required contribution under paragraph (1) for the eligible plan for such applicable plan year shall be an aggregate amount determined as if the plans were a single plan for that plan year (based on the full 12-month plan year in effect prior to the spin-off). The employer shall designate the allocation of such aggregate amount between such plans for the applicable plan year. (f) SPECIAL RULES FOR CERTAIN BALANCES AND WAIVERS.— In the case of an eligible plan with respect to which an election is made under subsection (a)(1)— (1) FUNDING STANDARD ACCOUNT AND CREDIT BALANCES.— Any charge or credit in the funding standard account under section 302 of such Act or section 412 of such Code, and any prefunding balance or funding standard carryover balance

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