160 
‘‘(A) IN GENERAL.—No actuarial assump-
tion used to determine the funding target for a 
plan to which this paragraph applies may be 
changed without the approval of the Secretary. 
‘‘(B) PLANS
TO
WHICH
PARAGRAPH
AP-
PLIES.—This paragraph shall apply to a plan 
only if— 
‘‘(i) the plan is a defined benefit plan 
(other than a multiemployer plan) to which 
title IV of the Employee Retirement In-
come Security Act of 1974 applies, 
‘‘(ii) the aggregate unfunded vested 
benefits as of the close of the preceding 
plan year (as determined under section 
4006(a)(3)(E)(iii) of the Employee Retire-
ment Income Security Act of 1974) of such 
plan and all other plans maintained by the 
contributing sponsors (as defined in sec-
tion 4001(a)(13) of such Act) and mem-
bers of such sponsors’ controlled groups 
(as defined in section 4001(a)(14) of such 
Act) which are covered by title IV (dis-
regarding plans with no unfunded vested 
benefits) exceed $50,000,000, and 
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161 
‘‘(iii) the change in assumptions (de-
termined after taking into account any 
changes in interest rate and mortality 
table) results in a decrease in the funding 
shortfall of the plan for the current plan 
year that exceeds $50,000,000, or that ex-
ceeds $5,000,000 and that is 5 percent or 
more of the funding target of the plan be-
fore such change. 
‘‘(i) SPECIAL RULES FOR AT-RISK PLANS.— 
‘‘(1) FUNDING TARGET FOR PLANS IN AT-RISK 
STATUS.— 
‘‘(A) IN GENERAL.—In the case of a plan 
which is in at-risk status for a plan year, the 
funding target of the plan for the plan year 
shall be equal to the sum of— 
‘‘(i) the present value of all benefits 
accrued or earned under the plan as of the 
beginning of the plan year, as determined 
by using the additional actuarial assump-
tions described in subparagraph (B), and 
‘‘(ii) in the case of a plan which also 
has been in at-risk status for at least 2 of 
the 4 preceding plan years, a loading fac-
tor determined under subparagraph (C). 
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162 
‘‘(B) ADDITIONAL
ACTUARIAL
ASSUMP-
TIONS.—The actuarial assumptions described in 
this subparagraph are as follows: 
‘‘(i) All employees who are not other-
wise assumed to retire as of the valuation 
date but who will be eligible to elect bene-
fits during the plan year and the 10 suc-
ceeding plan years shall be assumed to re-
tire at the earliest retirement date under 
the plan but not before the end of the plan 
year for which the at-risk funding target 
and at-risk target normal cost are being 
determined. 
‘‘(ii) All employees shall be assumed 
to elect the retirement benefit available 
under the plan at the assumed retirement 
age (determined after application of clause 
(i)) which would result in the highest 
present value of benefits. 
‘‘(C) LOADING FACTOR.—The loading fac-
tor applied with respect to a plan under this 
paragraph for any plan year is the sum of— 
‘‘(i) $700, times the number of par-
ticipants in the plan, plus 
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163 
‘‘(ii) 4 percent of the funding target 
(determined without regard to this para-
graph) of the plan for the plan year. 
‘‘(2) TARGET
NORMAL
COST
OF
AT-RISK 
PLANS.—In the case of a plan which is in at-risk 
status for a plan year, the target normal cost of the 
plan for such plan year shall be equal to the sum 
of— 
‘‘(A) the present value of all benefits which 
are expected to accrue or be earned under the 
plan during the plan year, determined using the 
additional actuarial assumptions described in 
paragraph (1)(B), plus 
‘‘(B) in the case of a plan which also has 
been in at-risk status for at least 2 of the 4 
preceding plan years, a loading factor equal to 
4 percent of the target normal cost (determined 
without regard to this paragraph) of the plan 
for the plan year. 
‘‘(3) MINIMUM AMOUNT.—In no event shall— 
‘‘(A) the at-risk funding target be less 
than the funding target, as determined without 
regard to this subsection, or 
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164 
‘‘(B) the at-risk target normal cost be less 
than the target normal cost, as determined 
without regard to this subsection. 
‘‘(4) DETERMINATION OF AT-RISK STATUS.— 
For purposes of this subsection— 
‘‘(A) IN GENERAL.—A plan is in at-risk 
status for a plan year if— 
‘‘(i) the funding target attainment 
percentage for the preceding plan year (de-
termined under this section without regard 
to this subsection) is less than 80 percent, 
and 
‘‘(ii) the funding target attainment 
percentage for the preceding plan year (de-
termined under this section by using the 
additional actuarial assumptions described 
in paragraph (1)(B) in computing the 
funding target) is less than 70 percent. 
‘‘(B) TRANSITION RULE.—In the case of 
plan years beginning in 2008, 2009, and 2010, 
subparagraph (A)(i) shall be applied by sub-
stituting the following percentages for ‘80 per-
cent’: 
‘‘(i) 65 percent in the case of 2008. 
‘‘(ii) 70 percent in the case of 2009. 
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165 
‘‘(iii) 75 percent in the case of 2010. 
In the case of plan years beginning in 2008, the 
funding target attainment percentage for the 
preceding plan year under subparagraph (A)(ii) 
may be determined using such methods of esti-
mation as the Secretary may provide. 
‘‘(C) SPECIAL RULE FOR EMPLOYEES OF-
FERED EARLY RETIREMENT IN 2006.— 
‘‘(i) IN
GENERAL.—For purposes of 
subparagraph (A)(ii), the additional actu-
arial assumptions described in paragraph 
(1)(B) shall not be taken into account with 
respect to any employee if— 
‘‘(I) such employee is employed 
by a specified automobile manufac-
turer, 
‘‘(II) such employee is offered a 
substantial amount of additional cash 
compensation, substantially enhanced 
retirement benefits under the plan, or 
materially reduced employment duties 
on the condition that by a specified 
date (not later than December 31, 
2010) the employee retires (as defined 
under the terms of the plan), 
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