PUBLIC LAW 109–280—AUG. 17, 2006
120 STAT. 803
‘‘(C) LOADING FACTOR.—The loading factor applied with respect to a plan under this paragraph for any plan year is the sum of— ‘‘(i) $700, times the number of participants in the plan, plus ‘‘(ii) 4 percent of the funding target (determined without regard to this paragraph) 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 ‘‘(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 (determined 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 (determined 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 substituting the following percentages for ‘80 percent’: ‘‘(i) 65 percent in the case of 2008. ‘‘(ii) 70 percent in the case of 2009. ‘‘(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 estimation as the Secretary of the Treasury may provide. ‘‘(C) SPECIAL RULE FOR EMPLOYEES OFFERED EARLY RETIREMENT IN 2006.— ‘‘(i) IN GENERAL.—For purposes of subparagraph (A)(ii), the additional actuarial assumptions described
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