228 
‘‘(i) the funding target of the 
plan for the plan year, over 
‘‘(ii) the value of plan assets of 
the plan (as reduced under sub-
section (f)(4)(B)) for the plan year 
which are held by the plan on the 
valuation date. 
‘‘(B) TRANSITION RULE.— 
‘‘(i) IN GENERAL.—For purposes 
of paragraph (3), in the case of a 
non-deficit reduction plan, sub-
paragraph (A) shall be applied to 
plan years beginning after 2006 
and before 2011 by substituting 
for the amount described in sub-
paragraph (A)(i) the applicable 
percentage of the funding target 
of the plan for the plan year de-
termined 
under 
the 
following 
table: 
‘‘In the case of a plan year beginning in calendar 
year: 
The appli-
cable per-
centage is: 
2007 ....................................................................................
92 percent
2008 ....................................................................................
94 percent
2009 ....................................................................................
96 percent
2010 ....................................................................................
98 percent.
229 
‘‘(ii) 
NON-DEFICIT
REDUCTION 
PLAN.—For purposes of clause (i), 
the term ‘non-deficit reduction 
plan’ means any plan— 
‘‘(I) to which section 412 
(as in effect on the day before 
the date of the enactment of 
the Pension Protection Act of 
2005) applied for the plan 
year beginning in 2006, and 
‘‘(II) to which subsection 
(l) of such section (as so in ef-
fect) did not apply for such 
plan year. 
‘‘(5) EARLY DEEMED AMORTIZATION UPON 
ATTAINMENT 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 amortization 
charge for such plan year and succeeding 
plan years, the shortfall amortization 
bases for all preceding plan years (and all 
shortfall amortization installments deter-
mined with respect to such bases) shall 
be reduced to zero.
230 
‘‘(d) RULES
RELATING
TO
FUNDING
TAR-
GET.—For purposes of this section— 
‘‘(1) FUNDING TARGET.—Except as pro-
vided in subsection (i)(1) with respect to 
plans in at-risk status, the funding target 
of a plan for a plan year is the present 
value of all liabilities to participants and 
their beneficiaries under the plan for the 
plan year. 
‘‘(2) FUNDING TARGET ATTAINMENT PER-
CENTAGE.—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 (as reduced under sub-
section (f)(4)(B)), bears to 
‘‘(B) the funding target of the plan 
for the plan year (determined without 
regard to subsection (i)(1)). 
‘‘(e) WAIVER AMORTIZATION CHARGE.— 
‘‘(1) DETERMINATION OF WAIVER AMORTI-
ZATION CHARGE.—The waiver amortization 
charge (if any) for a plan for any plan 
year is the aggregate total of the waiver
231 
amortization installments for such plan 
year with respect to the waiver amortiza-
tion bases for each of the 5 preceding 
plan years. 
‘‘(2) WAIVER
AMORTIZATION
INSTALL-
MENT.—The plan sponsor shall determine, 
with respect to the waiver amortization 
base of the plan for any plan year, the 
amounts necessary to amortize such 
waiver amortization base, in level annual 
installments over a period of 5 plan years 
beginning with the succeeding plan year. 
For purposes of paragraph (1), the annual 
installment of such amortization for each 
plan year in such 5-plan year period is 
the waiver amortization installment for 
such plan year with respect to such waiv-
er amortization base. 
‘‘(3) INTEREST
RATE.—In determining 
any 
waiver 
amortization 
installment 
under this subsection, the plan sponsor 
shall use the segment rates determined 
under subparagraph (C) of subsection 
(h)(2), applied under rules similar to the
232 
rules of subparagraph (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(c). 
‘‘(5) EARLY DEEMED AMORTIZATION UPON 
ATTAINMENT 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 amortization 
charge for such plan year and succeeding 
plan years, the waiver amortization base 
for all preceding plan years shall be re-
duced to zero. 
‘‘(f) REDUCTION OF MINIMUM REQUIRED CON-
TRIBUTION BY PRE-FUNDING BALANCE AND FUND-
ING STANDARD CARRYOVER BALANCE.— 
‘‘(1) ELECTION TO MAINTAIN BALANCES.— 
‘‘(A) PRE-FUNDING
BALANCE.—The 
plan sponsor of a defined benefit plan 
which is not a multiemployer plan 
may elect to maintain a pre-funding 
balance.