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‘‘(i) IN GENERAL.—Solely for purposes
of applying paragraph (3) in the case of
plan years beginning after 2006 and before
2011, only the applicable percentage of the
funding target shall be taken into account
under paragraph (3)(A) in determining the
funding shortfall for the plan year.
‘‘(ii) APPLICABLE PERCENTAGE.—For
purposes of subparagraph (A)—
‘‘(I) IN GENERAL.—Except as pro-
vided in subclause (II), the applicable
percentage shall be 93 percent for plan
years beginning in 2007, 96 percent
for plan years beginning in 2008, and
100 percent for any succeeding plan
year.
‘‘(II) SMALL PLANS.—In the case
of a plan described in subsection
(g)(2)(B), the applicable percentage
shall be determined in accordance with
the following table:
‘‘In the case of a plan year
The applicable
beginning in calendar year:
percentage is—
2007 ................................................................................................
2008 ................................................................................................
2009 ................................................................................................
2010 ................................................................................................
98.
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‘‘(5) EARLY DEEMED AMORTIZATION UPON AT-
TAINMENT
OF
FUNDING
TARGET.—In any case in
which the funding shortfall of a plan for a plan year
is zero, for purposes of determining the shortfall am-
ortization charge for such plan year and succeeding
plan years, the shortfall amortization bases for all
preceding plan years (and all shortfall amortization
installments determined with respect to such bases)
shall be reduced to zero.
‘‘(d) RULES RELATING TO FUNDING TARGET.—For
purposes of this section—
‘‘(1) FUNDING TARGET.—Except as provided in
subsection (i)(1) with respect to plans in at-risk sta-
tus, the funding target of a plan for a plan year is
the present value of all benefits accrued or earned
under the plan as of the beginning of the plan year.
‘‘(2) FUNDING
TARGET
ATTAINMENT
PERCENT-
AGE.—The ‘funding target attainment percentage’ of
a plan for a plan year is the ratio (expressed as a
percentage) which—
‘‘(A) the value of plan assets for the plan
year, bears to
‘‘(B) the funding target of the plan for the
plan year (determined without regard to sub-
section (i)(1)).
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‘‘(e) WAIVER AMORTIZATION CHARGE.—
‘‘(1) DETERMINATION OF WAIVER AMORTIZATION
CHARGE.—The waiver amortization charge (if any)
for a plan for any plan year is the aggregate total
of the waiver amortization installments for such plan
year with respect to the waiver amortization bases for
each of the 5 preceding plan years.
‘‘(2) WAIVER AMORTIZATION INSTALLMENT.—For
purposes of paragraph (1)—
‘‘(A) DETERMINATION.—The waiver amorti-
zation installments are the amounts necessary to
amortize the waiver amortization base of the
plan for any plan year in level annual install-
ments over a period of 5 plan years beginning
with the succeeding plan year.
‘‘(B) WAIVER
INSTALLMENT.—The waiver
amortization installment for any plan year in
the 5-year period under subparagraph (A) with
respect to any waiver amortization base is the
annual installment determined under subpara-
graph (A) for that year for that base.
‘‘(3) INTEREST
RATE.—In determining any
waiver amortization installment under this sub-
section, the plan sponsor shall use the segment rates
determined under subparagraph (C) of subsection
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(h)(2), applied under rules similar to the rules of sub-
paragraph (B) of subsection (h)(2).
‘‘(4) WAIVER AMORTIZATION BASE.—The waiver
amortization base of a plan for a plan year is the
amount of the waived funding deficiency (if any) for
such plan year under section 412(d).
‘‘(5) EARLY DEEMED AMORTIZATION UPON AT-
TAINMENT
OF
FUNDING
TARGET.—In any case in
which the funding shortfall of a plan for a plan year
is zero, for purposes of determining the waiver amor-
tization charge for such plan year and succeeding
plan years, the waiver amortization bases for all pre-
ceding plan years (and all waiver amortization in-
stallments with respect to such bases) shall be reduced
to zero.
‘‘(f) USE
OF PREFUNDING BALANCES TO SATISFY
MINIMUM REQUIRED CONTRIBUTIONS.—
‘‘(1) IN GENERAL.—A plan sponsor may credit
any amount of a plan’s prefunding balance for a
plan year against the minimum required contribution
for the plan year and the amount of the contributions
an employer is required to make under section 412(c)
for the plan year shall be reduced by the amount so
credited. Any such amount shall be credited on the
first day of the plan year.