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‘‘(C) SEGMENT
RATES.—For purposes of
this paragraph—
‘‘(i) FIRST SEGMENT RATE.—The term
‘first segment rate’ means, with respect to
any month, the single rate of interest which
shall be determined by the Secretary for
such month on the basis of the corporate
bond yield curve for such month, taking
into account only that portion of such yield
curve which is based on bonds maturing
during the 5-year period commencing with
such month.
‘‘(ii) SECOND
SEGMENT
RATE.—The
term ‘second segment rate’ means, with re-
spect to any month, the single rate of inter-
est which shall be determined by the Sec-
retary for such month on the basis of the
corporate bond yield curve for such month,
taking into account only that portion of
such yield curve which is based on bonds
maturing during each of the years in the
15-year period beginning at the end of the
period described in clause (i).
‘‘(iii) THIRD
SEGMENT
RATE.—The
term ‘third segment rate’ means, with re-
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spect to any month, the single rate of inter-
est which shall be determined by the Sec-
retary for such month on the basis of the
corporate bond yield curve for such month,
taking into account only that portion of
such yield curve which is based on bonds
maturing during periods beginning after
the period described in clause (ii).
‘‘(D) CORPORATE BOND YIELD CURVE.—The
term ‘corporate bond yield curve’ means, with re-
spect to any month, a yield curve which is pre-
scribed by the Secretary for such month and
which reflects the average, for the 12-month pe-
riod ending with the month preceding such
month, of yields on investment grade corporate
bonds with varying maturities.
‘‘(E) APPLICABLE MONTH.—For purposes of
this paragraph, the term ‘applicable month’
means, with respect to any plan for any plan
year, the month which includes the valuation
date of such plan for such plan year or, at the
election of the plan administrator, any of the 4
months which precede such month. Any election
made under this subparagraph shall apply to the
plan year for which the election is made and all
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succeeding plan years, unless the election is re-
voked with the consent of the Secretary.
‘‘(F) PUBLICATION
REQUIREMENTS.—The
Secretary shall publish for each month the cor-
porate bond yield curve for such month and each
of the rates determined under this paragraph for
such month. The Secretary shall also publish a
description of the methodology used to determine
such yield curve and such rates which is suffi-
ciently detailed to enable plans to make reason-
able projections regarding the yield curve and
such rates for future months based on the plan’s
projection of future interest rates.
‘‘(G) TRANSITION RULE.—
‘‘(i) IN
GENERAL.—Notwithstanding
the preceding provisions of this paragraph,
for plan years beginning in 2007 or 2008,
the first, second, or third segment rate for a
plan with respect to any month shall be
equal to the sum of—
‘‘(I) the product of such rate for
such month determined without regard
to this subparagraph, multiplied by the
applicable percentage, and
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‘‘(II) the product of the rate deter-
mined under the rules of section
412(b)(5)(B)(ii)(II) (as in effect for
plan years beginning in 2006), multi-
plied by a percentage equal to 100 per-
cent minus the applicable percentage.
‘‘(ii) APPLICABLE PERCENTAGE.—For
purposes of clause (i), the applicable per-
centage is 331⁄3 percent for plan years be-
ginning in 2007 and 662⁄3 percent for plan
years beginning in 2008.
‘‘(3) MORTALITY TABLES.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraphs (C) and (D), the mortality table
used in determining any present value or mak-
ing any computation under this section shall be
the RP–2000 Combined Mortality Table, using
Scale AA, as published by the Society of Actu-
aries, as in effect on the date of the enactment
of the Pension Security and Transparency Act of
2005 and as revised from time to time under
subparagraph (B).
‘‘(B) PERIODIC
REVISION.—The Secretary
shall (at least every 10 years) make revisions in
any table in effect under subparagraph (A) to re-
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flect the actual experience of pension plans and
projected trends in such experience.
‘‘(C) SUBSTITUTE MORTALITY TABLE.—
‘‘(i) IN
GENERAL.—Upon request by
the plan sponsor and approval by the Sec-
retary, a mortality table which meets the re-
quirements of clause (ii) shall be used in de-
termining any present value or making any
computation under this section during the
10-consecutive plan year period specified in
the request. A mortality table described in
this clause shall cease to be in effect if the
plan actuary determines at any time that
such table does not meet the requirements of
clause (ii).
‘‘(ii) REQUIREMENTS.—A mortality
table meets the requirements of this clause if
the Secretary determines that—
‘‘(I) there is a sufficient number
of plan participants, and the pension
plans have been maintained for a suffi-
cient period of time, to have credible
information necessary for purposes of
subclause (II),
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‘‘(II) such table reflects the actual
experience of the pension plans main-
tained by the sponsor and projected
trends in general mortality experience,
‘‘(III) except as provided by the
Secretary, such table will be used by
all plans maintained by the plan spon-
sor and all members of any controlled
group which includes the plan sponsor,
and
‘‘(IV) such table is significantly
different from the table described in
subparagraph (A).
‘‘(iii) DEADLINE FOR DISPOSITION OF
APPLICATION.—Any mortality table sub-
mitted to the Secretary for approval under
this subparagraph shall be treated as in ef-
fect for the first plan year in the 10-year
period described in clause (i) unless the Sec-
retary, during the 180-day period beginning
on the date of such submission, disapproves
of such table and provides the reasons that
such table fails to meet the requirements of
clause (ii). The 180-day period shall be ex-
tended for any period during which the Sec-