PUBLIC LAW 100-203—DEC. 22, 1987
101 STAT. 1330-339
year beginning after December 31, 1987, the unfunded current liability determined— "(I) by taking into account only liabilities attributable to such benefit increase, and "(II) by reducing the amount determined under paragraph (8)(A)(ii) by the current liability determined without regard to such benefit increase, "(iii) EXTENSIONS, MODIFICATIONS, ETC. NOT TAKEN INTO ACCOUNT.—For purposes of this subparagraph, any extension, amendment, or other modification of an agreement after October 16, 1987, shall not be taken into account. "(4) UNFUNDED NEW LIABILITY AMOUNT.—For purposes of this subsection— "(A) IN GENERAL.—The unfunded new liability amount with respect to any plan for any plan year is the applicable percentage of the unfunded new liability. "(B) UNFUNDED NEW LIABILITY.—The term 'unfunded new liability' means the unfunded current liability of the plan for the plan year determined without regard to— "(i) the unamortized portion of the unfunded old liability, and "(ii) the liability with respect to any unpredictable contingent event benefits (without regard to whether the event has occurred). "(C) APPLICABLE PERCENTAGE.—The term 'applicable percentage' means, with respect to any plan year, 30 percent, reduced by the product of— "(i).25 multiplied by "(ii) the number of percentage points (if any) by which the funded current liability percentage exceeds 35 percent. "(5) UNPREDICTABLE CONTINGENT EVENT AMOUNT.—
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"(A) IN GENERAL.—The unpredictable contingent event amount with respect to a plan for any plan year is an amount equal to the greater of— "(i) the applicable percentage of the product of— "(I) 100 percent, reduced (but not below zero) by > the funded current liability percentage for the plan year, multiplied by "(II) the amount of unpredictable contingent Contracts. event benefits paid during the plan year, including (except as provided by the Secretary of the Treasury) any payment for the purchase of an annuity contract for a participant or beneficiary with respect to such benefits, or "(ii) the amount which would be determined for the plan year if the unpredictable contingent event benefit liabilities were amortized in equal annual installments over 7 plan years (beginning with the plan year in which such event occurs). "(B) A P P U C A B L E PERCENTAGE.—
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