304
‘‘(4) SPECIAL RULE FOR AMOUNTS FIRST AM-
ORTIZED IN PLAN YEARS BEFORE 2008.—In the case 
of any amount amortized under section 412(b) (as 
in effect on the day before the date of the enactment 
of the Pension Protection Act of 2006) over any pe-
riod beginning with a plan year beginning before 
2008 in lieu of the amortization described in para-
graphs (2)(B) and (3)(B), such amount shall con-
tinue to be amortized under such section as so in ef-
fect. 
‘‘(5) COMBINING
AND
OFFSETTING
AMOUNTS 
TO BE AMORTIZED.—Under regulations prescribed 
by the Secretary, amounts required to be amortized 
under paragraph (2) or paragraph (3), as the case 
may be—
‘‘(A) may be combined into one amount 
under such paragraph to be amortized over a 
period determined on the basis of the remaining 
amortization period for all items entering into 
such combined amount, and 
‘‘(B) may be offset against amounts re-
quired to be amortized under the other such 
paragraph, with the resulting amount to be am-
ortized over a period determined on the basis of 
the remaining amortization periods for all items
305
entering into whichever of the two amounts 
being offset is the greater. 
‘‘(6) INTEREST.—The funding standard ac-
count (and items therein) shall be charged or cred-
ited (as determined under regulations prescribed by 
the Secretary of the Treasury) with interest at the 
appropriate rate consistent with the rate or rates of 
interest used under the plan to determine costs. 
‘‘(7) SPECIAL RULES RELATING TO CHARGES 
AND CREDITS TO FUNDING STANDARD ACCOUNT.—
For purposes of this part—
‘‘(A) 
WITHDRAWAL
LIABILITY.—Any 
amount received by a multiemployer plan in 
payment of all or part of an employer’s with-
drawal liability under part 1 of subtitle E of 
title IV of the Employee Retirement Income Se-
curity Act of 1974 shall be considered an 
amount contributed by the employer to or 
under the plan. The Secretary may prescribe by 
regulation additional charges and credits to a 
multiemployer plan’s funding standard account 
to the extent necessary to prevent withdrawal li-
ability payments from being unduly reflected as 
advance funding for plan liabilities.
306
‘‘(B) ADJUSTMENTS
WHEN
A
MULTIEM-
PLOYER PLAN LEAVES REORGANIZATION.—If a 
multiemployer plan is not in reorganization in 
the plan year but was in reorganization in the 
immediately preceding plan year, any balance in 
the funding standard account at the close of 
such immediately preceding plan year—
‘‘(i) shall be eliminated by an offset-
ting credit or charge (as the case may be), 
but 
‘‘(ii) shall be taken into account in 
subsequent plan years by being amortized 
in equal annual installments (until fully 
amortized) over 30 plan years. 
The preceding sentence shall not apply to the 
extent of any accumulated funding deficiency 
under section 4243(a) of such Act as of the end 
of the last plan year that the plan was in reor-
ganization. 
‘‘(C) PLAN PAYMENTS TO SUPPLEMENTAL 
PROGRAM OR WITHDRAWAL LIABILITY PAYMENT 
FUND.—Any amount paid by a plan during a 
plan year to the Pension Benefit Guaranty Cor-
poration pursuant to section 4222 of such Act 
or to a fund exempt under section 501(c)(22)
307
pursuant to section 4223 of such Act shall re-
duce the amount of contributions considered re-
ceived by the plan for the plan year. 
‘‘(D) INTERIM
WITHDRAWAL
LIABILITY 
PAYMENTS.—Any amount paid by an employer 
pending a final determination of the employer’s 
withdrawal liability under part 1 of subtitle E 
of title IV of such Act and subsequently re-
funded to the employer by the plan shall be 
charged to the funding standard account in ac-
cordance with regulations prescribed by the 
Secretary. 
‘‘(E) 
ELECTION
FOR
DEFERRAL
OF 
CHARGE
FOR
PORTION
OF
NET
EXPERIENCE 
LOSS.—If an election is in effect under section 
412(b)(7)(F) (as in effect on the day before the 
date of the enactment of the Pension Protection 
Act of 2006) for any plan year, the funding 
standard account shall be charged in the plan 
year to which the portion of the net experience 
loss deferred by such election was deferred with 
the amount so deferred (and paragraph 
(2)(B)(iii) shall not apply to the amount so 
charged).
308
‘‘(F) 
FINANCIAL
ASSISTANCE.—Any 
amount of any financial assistance from the 
Pension Benefit Guaranty Corporation to any 
plan, and any repayment 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 ex-
tent that any plan amendment increases the un-
funded past service liability under the plan by 
reason of an increase in benefits which are not 
payable as a life annuity but are payable under 
the terms of the plan for a period that does not 
exceed 14 years from the effective date of the 
amendment, paragraph (2)(B)(ii) shall be ap-
plied separately with respect to such increase in 
unfunded past service liability by substituting 
the number of years of the period during which 
such benefits are payable for ‘15’. 
‘‘(c) ADDITIONAL RULES.—
‘‘(1) DETERMINATIONS
TO
BE
MADE
UNDER 
FUNDING METHOD.—For purposes of this part, nor-
mal costs, accrued liability, past service liabilities, 
and experience gains and losses shall be determined