PUBLIC LAW 100-203—DEC. 22, 1987
"In the case of the followin|r required installments: 1st 2nd 3rd 4th
101 STAT. 1330-347
The due date is: April 15 July 15 October 15 January 15 of the following year.
"(4) AMOUNT OF REQUIRED INSTALLMENT.—For purposes of this subsection— "(A) IN GENERAL.—The amount of any required installment shall be the applicable percentage of the required annual payment. "(B)
subparagraph (A), the term 'required annual payment' means the lesser of— "(i) 90 percent of the amount required to be contributed to or under the plan by the employer for the plan year under section 412 of the Internal Revenue Code of 1986 (without regard to any waiver under subsection (c) thereof), or "(ii) 100 percent of the amount so required for the preceding plan year. Clause (ii) shall not apply if the preceding plan year was not a year of 12 months. "(C) APPLICABLE PERCENTAGE.—For purposes of subpara-
graph (A), the applicable percentage shall be determined in accordance with the following table:
"For plan years beginning in: 1989 1990 1991 -^ 1992 and thereaRer
"(D) SPECIAL RULES FOR UNPREDICTABLE CONTINGENT EVENT BENEFITS.—In the case of a plan with any unpredict-
' f'S '
The applicable percentage is: 6.25 12.5 18.75 25.
able contingent event benefit liabilities— "(i) such liabilities shall not be taken into account in computing the required annual payment under subparagraph (B), and "(ii) each required installment shall be increased by the greater of— "(I) the amount of benefits described in subsection (d)(5)(A)(i) paid during the 3-month period preceding the month in which the due date for such installment occurs, or "(II) 25 percent of the amount determined under subsection (d)(5)(A)(ii) for the plan year. "(5) FISCAL YEARS AND SHORT YEARS.— "(A) FISCAL YEARS.—In applying this
subsection to a plan year beginning on any date other than January 1, there shall be substituted for the months specified in this subsection, the months which correspond thereto. "(B) SHORT PLAN YEAR.—This section shall be applied to Regulations. plan years of less than 12 months in accordance with regulations prescribed by the Secretary of the Treasury." (3) EFFECTIVE DATE.—The amendments made by this subsec- 26 USC 412 note. tion shall apply with respect to plan years beginning after 1988. (c) INCREASE IN EXCISE TAX FROM 5 PERCENT TO 10 PERCENT.—