PUBLIC LAW 109–280—AUG. 17, 2006
120 STAT. 815
percentage’ means the funding target attainment percentage which is determined under subparagraph (A) by increasing each of the amounts under subparagraphs (A) and (B) of section 303(d)(2) by the aggregate amount of purchases of annuities for employees other than highly compensated employees (as defined in section 414(q) of the Internal Revenue Code of 1986) which were made by the plan during the preceding 2 plan years. ‘‘(C) APPLICATION TO PLANS WHICH ARE FULLY FUNDED WITHOUT REGARD TO REDUCTIONS FOR FUNDING BALANCES.— ‘‘(i) IN GENERAL.—In the case of a plan for any plan year, if the funding target attainment percentage is 100 percent or more (determined without regard to this subparagraph and without regard to the reduction in the value of assets under section 303(f)(4)), the funding target attainment percentage for purposes of subparagraphs (A) and (B) shall be determined without regard to such reduction. ‘‘(ii) TRANSITION RULE.—Clause (i) shall be applied to plan years beginning after 2007 and before 2011 by substituting for ‘100 percent’ the applicable percentage determined in accordance with the following table: ‘‘In the case of a plan year
The applicable beginning in calendar year: percentage is 2008 ................................................................................. 92 2009 ................................................................................. 94 2010 ................................................................................. 96.
‘‘(iii) LIMITATION.—Clause (ii) shall not apply with respect to any plan year after 2008 unless the funding target attainment percentage (determined without regard to this subparagraph) of the plan for each preceding plan year after 2007 was not less than the applicable percentage with respect to such preceding plan year determined under clause (ii). ‘‘(10) SPECIAL RULE FOR 2008.—For purposes of this subsection, in the case of plan years beginning in 2008, the funding target attainment percentage for the preceding plan year may be determined using such methods of estimation as the Secretary of the Treasury may provide.’’. (b) NOTICE REQUIREMENT.— (1) IN GENERAL.—Section 101 of such Act (29 U.S.C. 1021) is amended— (A) by redesignating subsection (j) as subsection (k); and (B) by inserting after subsection (i) the following new subsection: ‘‘(j) NOTICE OF FUNDING-BASED LIMITATION ON CERTAIN FORMS OF DISTRIBUTION.—The plan administrator of a single-employer plan shall provide a written notice to plan participants and beneficiaries within 30 days— ‘‘(1) after the plan has become subject to a restriction described in paragraph (1) or (3) of section 206(g)), ‘‘(2) in the case of a plan to which section 206(g)(4) applies, after the valuation date for the plan year described in section 206(g)(4)(B) for which the plan’s adjusted funding target attainment percentage for the plan year is less than 60 percent
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