317 
interest used under the plan to determine 
costs. 
‘‘(7) CERTAIN
AMORTIZATION
CHARGES 
AND CREDITS.—In the case of a plan which, 
immediately before the date of the enact-
ment of the Multiemployer Pension Plan 
Amendments Act of 1980, was a multiem-
ployer plan (within the meaning of sec-
tion 414(f) as in effect immediately before 
such date)— 
‘‘(A) any amount described in 
paragraph 
(2)(B)(ii), 
(2)(B)(iii), 
or 
(3)(B)(i) of this subsection which 
arose in a plan year beginning before 
such date shall be amortized in equal 
annual installments (until fully amor-
tized) over 40 plan years, beginning 
with the plan year in which the 
amount arose, 
‘‘(B) any amount described in 
paragraph (2)(B)(iv) or (3)(B)(ii) of 
this subsection which arose in a plan 
year beginning before such date shall 
be amortized in equal annual install-
ments (until fully amortized) over 20
318 
plan years, beginning with the plan 
year in which the amount arose, 
‘‘(C) any change in past service li-
ability which arises during the period 
of 3 plan years beginning on or after 
such date, and results from a plan 
amendment adopted before such date, 
shall be amortized in equal annual in-
stallments (until fully amortized) over 
40 plan years, beginning with the 
plan year in which the change arises, 
and 
‘‘(D) any change in past service li-
ability which arises during the period 
of 2 plan years beginning on or after 
such date, and results from the 
changing of a group of participants 
from one benefit level to another ben-
efit level under a schedule of plan 
benefits which— 
‘‘(i) was adopted before such 
date, and 
‘‘(ii) was effective for any plan 
participant before the beginning
319 
of the first plan year beginning 
on or after such date, 
shall be amortized in equal annual in-
stallments (until fully amortized) over 
40 plan years, beginning with the 
plan year in which the change arises. 
‘‘(8) 
SPECIAL
RULES
RELATING
TO 
CHARGES AND CREDITS TO FUNDING STAND-
ARD ACCOUNT.—For purposes of this sec-
tion— 
‘‘(A) WITHDRAWAL
LIABILITY.—Any 
amount received by a multiemployer 
plan in payment of all or part of an 
employer’s withdrawal liability under 
part 1 of subtitle E of title IV of the 
Employee Retirement Income Secu-
rity Act of 1974 shall be considered 
an amount contributed by the em-
ployer to or under the plan. The Sec-
retary may prescribe by regulation 
additional charges and credits to a 
multiemployer plan’s funding stand-
ard account to the extent necessary 
to prevent withdrawal liability pay-
320 
ments from being unduly reflected as 
advance funding for plan liabilities. 
‘‘(B) ADJUSTMENTS WHEN A MULTI-
EMPLOYER
PLAN
LEAVES
REORGANIZA-
TION.—If a multiemployer plan is not 
in reorganization in the plan year but 
was in reorganization in the imme-
diately preceding plan year, any bal-
ance in the funding standard account 
at the close of such immediately pre-
ceding plan year— 
‘‘(i) shall be eliminated by an 
offsetting credit or charge (as the 
case may be), but 
‘‘(ii) shall be taken into ac-
count in subsequent plan years by 
being amortized in equal annual 
installments (until fully amor-
tized) over 30 plan years. 
The preceding sentence shall not 
apply to the extent of any accumu-
lated funding deficiency under sec-
tion 418B(a) as of the end of the last 
plan year that the plan was in reorga-
nization.
321 
‘‘(C) PLAN
PAYMENTS
TO
SUPPLE-
MENTAL
PROGRAM
OR
WITHDRAWAL
LI-
ABILITY
PAYMENT
FUND.—Any amount 
paid by a plan during a plan year to 
the Pension Benefit Guaranty Cor-
poration pursuant to section 4222 of 
the Employee Retirement Income Se-
curity Act of 1974 or to a fund exempt 
under section 501(c)(22) pursuant to 
section 4223 of such Act shall reduce 
the amount of contributions consid-
ered received by the plan for the plan 
year. 
‘‘(D) INTERIM
WITHDRAWAL
LIABIL-
ITY
PAYMENTS.—Any amount paid by 
an employer pending a final deter-
mination of the employer’s with-
drawal liability under part 1 of sub-
title E of title IV of such Act and sub-
sequently refunded to the employer 
by the plan shall be charged to the 
funding standard account in accord-
ance with regulations prescribed by 
the Secretary.
322 
‘‘(E) ELECTION
FOR
DEFERRAL
OF 
CHARGE
FOR
PORTION
OF
NET
EXPERI-
ENCE LOSS.—If an election is in effect 
under section 412(b)(7)(F) (as in effect 
on the day before the date of the en-
actment of the Pension Protection 
Act of 2005) for any plan year, the 
funding standard account shall be 
charged in the plan year to which the 
portion of the net experience loss de-
ferred by such election was deferred 
with the amount so deferred (and 
paragraph (2)(B)(iv) shall not apply to 
the amount so charged). 
‘‘(F) FINANCIAL
ASSISTANCE.—Any 
amount of any financial assistance 
from the Pension Benefit Guaranty 
Corporation to any plan, and any re-
payment of such amount, shall be 
taken into account under this section 
and section 412 in such manner as is 
determined by the Secretary. 
‘‘(G) 
SHORT-TERM
BENEFITS.—To 
the extent that any plan amendment 
increases the unfunded past service
323 
liability under the plan by reason of 
an increase in benefits which are pay-
able under the plan during a period 
that does not exceed 14 years, para-
graph (2)(B)(iii) shall be applied sepa-
rately with respect to such increase 
in unfunded past service liability by 
substituting the number of years of 
the period during which such bene-
fits are payable for ‘15’. 
‘‘(c) ADDITIONAL RULES.— 
‘‘(1) 
DETERMINATIONS
TO
BE
MADE 
UNDER FUNDING METHOD.—For purposes of 
this section, normal costs, accrued liabil-
ity, past service liabilities, and experi-
ence gains and losses shall be determined 
under the funding method used to deter-
mine costs under the plan. 
‘‘(2) VALUATION OF ASSETS.— 
‘‘(A) IN GENERAL.—For purposes of 
this section, the value of the plan’s as-
sets shall be determined on the basis 
of any reasonable actuarial method of 
valuation which takes into account 
fair market value and which is per-
324 
mitted under regulations prescribed 
by the Secretary. 
‘‘(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 ad-
ministrator, be determined on an am-
ortized 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 man-
ner as the Secretary shall by regula-
tions provide, shall apply to all such 
evidences of indebtedness, and may 
be revoked only with the consent of 
the Secretary. 
‘‘(3) ACTUARIAL ASSUMPTIONS MUST BE 
REASONABLE.—For purposes of this sec-
tion, all costs, liabilities, rates of interest, 
and other factors under the plan shall be 
determined on the basis of actuarial as-
sumptions and methods—
325 
‘‘(A) each of which is reasonable 
(taking into account the experience 
of the plan and reasonable expecta-
tions), and 
‘‘(B) which, in combination, offer 
the actuary’s best estimate of antici-
pated experience under the plan. 
‘‘(4) TREATMENT
OF
CERTAIN
CHANGES 
AS
EXPERIENCE
GAIN
OR
LOSS.—For pur-
poses of this section, if— 
‘‘(A) a change in benefits under 
the Social Security Act or in other re-
tirement benefits created under Fed-
eral or State law, or 
‘‘(B) a change in the definition of 
the term ‘wages’ under section 3121, 
or a change in the amount of such 
wages taken into account under regu-
lations prescribed for purposes of 
section 401(a)(5), 
results in an increase or decrease in ac-
crued liability under a plan, such in-
crease or decrease shall be treated as an 
experience loss or gain.
326 
‘‘(5) FULL FUNDING.—If, as of the close 
of a plan year, a plan would (without re-
gard to this paragraph) have an accumu-
lated 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 sub-
paragraphs (B), (C), and (D) of sub-
section (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 (in-
cluding normal cost) under the 
plan (determined under the entry 
age normal funding method if 
such accrued liability cannot be
327 
directly 
calculated 
under 
the 
funding 
method 
used 
for 
the 
plan), over 
‘‘(ii) the lesser of— 
‘‘(I) the fair market value 
of the plan’s assets, or 
‘‘(II) the value of such as-
sets determined under para-
graph (2). 
‘‘(B) MINIMUM AMOUNT.— 
‘‘(i) IN GENERAL.—In no event 
shall the full-funding limitation 
determined under subparagraph 
(A) be less than the excess (if any) 
of— 
‘‘(I) 90 percent of the cur-
rent liability of the plan (in-
cluding the expected increase 
in current liability due to ben-
efits accruing during the plan 
year), over 
‘‘(II) 
the 
value 
of 
the 
plan’s 
assets 
determined 
under paragraph (2).
328 
‘‘(ii) ASSETS.—For purposes of 
clause (i), assets shall not be re-
duced by any credit balance in 
the funding standard account. 
‘‘(C) FULL
FUNDING
LIMITATION.— 
For purposes of this paragraph, un-
less otherwise provided by the plan, 
the accrued liability under a multi-
employer plan shall not include bene-
fits which are not nonforfeitable 
under the plan after the termination 
of the plan (taking into consideration 
section 411(d)(3)). 
‘‘(D) CURRENT LIABILITY.—For pur-
poses of this paragraph— 
‘‘(i) IN
GENERAL.—The term 
‘current liability’ means all liabil-
ities to employees and their bene-
ficiaries under the plan. 
‘‘(ii) TREATMENT OF UNPREDICT-
ABLE
CONTINGENT
EVENT
BENE-
FITS.—For purposes of clause (i), 
any benefit contingent on an 
event other than—
329 
‘‘(I) 
age, 
service, 
com-
pensation, death, or disability, 
or 
‘‘(II) an event which is 
reasonably and reliably pre-
dictable (as determined by the 
Secretary), 
shall not be taken into account 
until the event on which the ben-
efit is contingent occurs. 
‘‘(iii) INTEREST
RATE
USED.— 
The rate of interest used to deter-
mine current liability under this 
paragraph shall be the rate of in-
terest determined under subpara-
graph (E). 
‘‘(iv) MORTALITY TABLES.— 
‘‘(I) COMMISSIONERS’ STAND-
ARD
TABLE.—In the case of 
plan years beginning before 
the first plan year to which 
the 
first 
tables 
prescribed 
under subclause (II) apply, 
the mortality table used in de-
termining 
current 
liability
330 
under this paragraph shall be 
the table prescribed by the 
Secretary which is based on 
the prevailing commissioners’ 
standard table (described in 
section 807(d)(5)(A)) used to 
determine reserves for group 
annuity contracts issued on 
January 1, 1993. 
‘‘(II) SECRETARIAL AUTHOR-
ITY.—The Secretary may by 
regulation prescribe for plan 
years beginning after Decem-
ber 31, 1999, mortality tables 
to be used in determining cur-
rent liability under this sub-
section. Such tables shall be 
based upon the actual experi-
ence of pension plans and 
projected trends in such expe-
rience. In prescribing such ta-
bles, the Secretary shall take 
into account results of avail-
able independent studies of
331 
mortality of individuals cov-
ered by pension plans. 
‘‘(v) SEPARATE
MORTALITY
TA-
BLES FOR THE DISABLED.—Notwith-
standing clause (iv)— 
‘‘(I) IN
GENERAL.—In the 
case of plan years beginning 
after December 31, 1995, the 
Secretary shall establish mor-
tality tables which may be 
used (in lieu of the tables 
under clause (iv)) to deter-
mine current liability under 
this subsection for individuals 
who are entitled to benefits 
under the plan on account of 
disability. The Secretary shall 
establish separate tables for 
individuals whose disabilities 
occur in plan years beginning 
before January 1, 1995, and 
for individuals whose disabil-
ities occur in plan years be-
ginning on or after such date.
332 
‘‘(II) SPECIAL RULE FOR DIS-
ABILITIES
OCCURRING
AFTER 
1994.—In the case of disabil-
ities occurring in plan years 
beginning after December 31, 
1994, the tables under sub-
clause (I) shall apply only 
with respect to individuals 
described in such subclause 
who are disabled within the 
meaning of title II of the So-
cial Security Act and the reg-
ulations thereunder. 
‘‘(vi) 
PERIODIC
REVIEW.—The 
Secretary shall periodically (at 
least every 5 years) review any ta-
bles in effect under this subpara-
graph and shall, to the extent the 
Secretary determines necessary, 
by regulation update the tables to 
reflect the actual experience of 
pension 
plans 
and 
projected 
trends in such experience. 
‘‘(E) REQUIRED
CHANGE
OF
INTER-
EST
RATE.—For purposes of deter-