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‘‘(A) the normal cost of the plan for the
plan year,
‘‘(B) the amounts necessary to amortize in
equal annual installments (until fully amor-
tized)—
‘‘(i) separately, with respect to each
plan year, the net increase (if any) in un-
funded past service liability under the plan
arising from plan amendments adopted in
such year, over a period of 15 plan years,
‘‘(ii) separately, with respect to each
plan year, the net experience loss (if any)
under the plan, over a period of 15 plan
years, and
‘‘(iii) separately, with respect to each
plan year, the net loss (if any) resulting
from changes in actuarial assumptions used
under the plan, over a period of 15 plan
years,
‘‘(C) the amount necessary to amortize each
waived funding deficiency (within the meaning
of section 412(d)(3)) for each prior plan year in
equal annual installments (until fully amor-
tized) over a period of 15 plan years,
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‘‘(D) the amount necessary to amortize in
equal annual installments (until fully amor-
tized) over a period of 5 plan years any amount
credited to the funding standard account under
section 412(b)(3)(D) (as in effect on the day be-
fore the date of the enactment of the Pension Se-
curity and Transparency Act of 2005), and
‘‘(E) the amount necessary to amortize in
equal annual installments (until fully amor-
tized) over a period of 20 years the contributions
which would be required to be made under the
plan 
but 
for 
the 
provisions 
of 
section
412(c)(7)(A)(i)(I) (as in effect on the day before
the date of the enactment of the Pension Security
and Transparency Act of 2005).
‘‘(3) CREDITS TO ACCOUNT.—For a plan year,
the funding standard account shall be credited with
the sum of—
‘‘(A) the amount considered contributed by
the employer to or under the plan for the plan
year,
‘‘(B) the amount necessary to amortize in
equal annual installments (until fully amor-
tized)—
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‘‘(i) separately, with respect to each
plan year, the net decrease (if any) in un-
funded past service liability under the plan
arising from plan amendments adopted in
such year, over a period of 15 plan years,
‘‘(ii) separately, with respect to each
plan year, the net experience gain (if any)
under the plan, over a period of 15 plan
years, and
‘‘(iii) separately, with respect to each
plan year, the net gain (if any) resulting
from changes in actuarial assumptions used
under the plan, over a period of 15 plan
years,
‘‘(C) the amount of the waived funding defi-
ciency (within the meaning of section 412(d)(3))
for the plan year, and
‘‘(D) in the case of a plan year for which
the accumulated funding deficiency is deter-
mined under the funding standard account if
such plan year follows a plan year for which
such deficiency was determined under the alter-
native minimum funding standard under section
412(g) (as in effect on the day before the date of
the enactment of the Pension Security and
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Transparency Act of 2005), the excess (if any) of
any debit balance in the funding standard ac-
count (determined without regard to this sub-
paragraph) over any debit balance in the alter-
native minimum funding standard account.
‘‘(4) SPECIAL RULE FOR AMOUNTS FIRST AMOR-
TIZED TO PLAN YEARS BEFORE 2007.—In the case of
any amount amortized under section 412(b) (as in ef-
fect on the day before the date of the enactment of the
Pension Security and Transparency Act of 2005) over
any period beginning with a plan year beginning be-
fore 2007, in lieu of the amortization described in
paragraphs (2)(B) and (3)(B), such amount shall
continue to be amortized under such section as so in
effect.
‘‘(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 pe-
riod determined on the basis of the remaining
amortization period for all items entering into
such combined amount, and
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‘‘(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
entering into whichever of the two amounts being
offset is the greater.
‘‘(6) INTEREST.—The funding standard account
(and items therein) shall be charged or credited (as
determined under regulations prescribed by the Sec-
retary of the Treasury) with interest at the appro-
priate 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 multiem-
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ployer plan’s funding standard account to the
extent necessary to prevent withdrawal liability
payments from being unduly reflected as advance
funding for plan liabilities.
‘‘(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 ex-
tent 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 reorga-
nization.
‘‘(C) PLAN
PAYMENTS
TO
SUPPLEMENTAL
PROGRAM OR WITHDRAWAL LIABILITY PAYMENT
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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) pur-
suant to section 4223 of such Act shall reduce the
amount of contributions considered received by
the plan for the plan year.
‘‘(D) INTERIM WITHDRAWAL LIABILITY PAY-
MENTS.—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 refunded
to the employer by the plan shall be charged to
the funding standard account in accordance 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 en-
actment of the Pension Security and Trans-
parency 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 experi-
ence loss deferred by such election was deferred
with the amount so deferred (and paragraph
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(2)(B)(ii) 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 repayment of such amount, shall be taken
into account under this section and section 412
in such manner as is determined by the Sec-
retary.
‘‘(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 pay-
able 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)(i) shall be
applied 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
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under the funding method used to determine costs
under the plan.
‘‘(2) VALUATION OF ASSETS.—
‘‘(A) IN
GENERAL.—For purposes of this
part, the value of the plan’s assets shall be deter-
mined on the basis of any reasonable actuarial
method of valuation which takes into account
fair market value and which is permitted 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 administrator, be determined on an amor-
tized 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 manner as the
Secretary shall by regulations provide, shall
apply to all such evidences of indebtedness, and
may be revoked only with the consent of the Sec-
retary.
‘‘(3) ACTUARIAL ASSUMPTIONS MUST BE REA-
SONABLE.—For purposes of this section, all costs, li-
abilities, rates of interest, and other factors under the
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plan shall be determined on the basis of actuarial as-
sumptions and methods—
‘‘(A) each of which is reasonable (taking
into account the experience of the plan and rea-
sonable expectations), and
‘‘(B) which, in combination, offer the actu-
ary’s best estimate of anticipated experience
under the plan.
‘‘(4) TREATMENT OF CERTAIN CHANGES AS EX-
PERIENCE GAIN OR LOSS.—For purposes of this sec-
tion, if—
‘‘(A) a change in benefits under the Social
Security Act or in other retirement benefits cre-
ated under Federal 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
regulations prescribed for purposes of section
401(a)(5),
results in an increase or decrease in accrued liability
under a plan, such increase or decrease shall be treat-
ed as an experience loss or gain.
‘‘(5) FULL FUNDING.—If, as of the close of a
plan year, a plan would (without regard to this para-