PUBLIC LAW 109–280—AUG. 17, 2006
120 STAT. 797
‘‘(ii) does not provide for averaging of such values over more than the period beginning on the last day of the 25th month preceding the month in which the valuation date occurs and ending on the valuation date (or a similar period in the case of a valuation date which is not the 1st day of a month), and ‘‘(iii) does not result in a determination of the value of plan assets which, at any time, is lower than 90 percent or greater than 110 percent of the fair market value of such assets at such time. Any such averaging shall be adjusted for contributions and distributions (as provided by the Secretary of the Treasury). ‘‘(4) ACCOUNTING FOR CONTRIBUTION RECEIPTS.—For purposes of determining the value of assets under paragraph (3)— ‘‘(A) PRIOR YEAR CONTRIBUTIONS.—If— ‘‘(i) an employer makes any contribution to the plan after the valuation date for the plan year in which the contribution is made, and ‘‘(ii) the contribution is for a preceding plan year, the contribution shall be taken into account as an asset of the plan as of the valuation date, except that in the case of any plan year beginning after 2008, only the present value (determined as of the valuation date) of such contribution may be taken into account. For purposes of the preceding sentence, present value shall be determined using the effective interest rate for the preceding plan year to which the contribution is properly allocable. ‘‘(B) SPECIAL RULE FOR CURRENT YEAR CONTRIBUTIONS MADE BEFORE VALUATION DATE.—If any contributions for any plan year are made to or under the plan during the plan year but before the valuation date for the plan year, the assets of the plan as of the valuation date shall not include— ‘‘(i) such contributions, and ‘‘(ii) interest on such contributions for the period between the date of the contributions and the valuation date, determined by using the effective interest rate for the plan year. ‘‘(h) ACTUARIAL ASSUMPTIONS AND METHODS.— ‘‘(1) IN GENERAL.—Subject to this subsection, the determination of any present value or other computation under this section shall be made on the basis of actuarial assumptions and methods— ‘‘(A) each of which is reasonable (taking into account the experience of the plan and reasonable expectations), and ‘‘(B) which, in combination, offer the actuary’s best estimate of anticipated experience under the plan. ‘‘(2) INTEREST RATES.— ‘‘(A) EFFECTIVE INTEREST RATE.—For purposes of this section, the term ‘effective interest rate’ means, with respect to any plan for any plan year, the single rate of interest which, if used to determine the present value of the plan’s accrued or earned benefits referred to in subsection (d)(1), would result in an amount equal to the funding target of the plan for such plan year.
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