PUBLIC LAW 103-465—DEC. 8, 1994 108 STAT. 5019 the initial funded current liability percentage of such plan shall be treated as beiag the sum referred to in the preceding sentence. "(C) DEFINITIONS. — For purposes of this paragraph:
- (i) The term 'applicable plan year means a plan
year begiinning after December 31, 1994, and before January 1, 2002.
- (ii) The term ^initial funded current liability
percentage' means the funded current liabliity percentage as of the first day of the first plan year beginning after December 31, 1994." (9) LIQUIDITY REQUIREMENT.— (A) IN GENERAL.— Section 412(m) is amended by 26 USC 412. redesignating paragraph (5) as paragraph (6) and by inserting after psiragraph (4) the following new paragraph: "(5) LIQUIDITY REQUIREMENT.— "(A) IN GENERAL.— ^A plan to which this paragraph appHes shall be treated as failing to pay the full amount of Euay required installment to the extent that the value of the liquid assets paid in such installment is less than the Uquidity shortfall (whether or not such Uquidity shortfall exceeds the amount of such installment required to be paid but for this paragraph). "(B) PLANS TO WHICH PARAGRAPH APPLIES.— This paragraph shall apply to a defined benefit plan (other than a multiemployer plan or a plan described in subsection (1)(6)(A)) which— "(i) is required to pay installments under this subsection for a plan year, and "(ii) lias a liquidity shortfall for any quarter during such plan year. "(C) PERIOD OF UNDERPAYMENT. — For purposes of paragraph (1), any portion of an installment that is treated as not paid under subparagraph (A) shall continue to be treated as unpaid until the close of the quarter in which the due date for such installment occurs. "(D) LIMITATION ON INCREASE. — If the amount of any required installment is increased by reason of subparagraph (A), in no event shall such increase exceed the amount which, when added to prior installments for the plan year, is necessary to increase the funded current liabOity percentage (taking into account the expected increase in current Uability due to benefits accruing during the plan year) to 100 percent " (E) DEFINITIONS.— For purposes of this paragraph: "(i) LIQUIDITY SHORTFALL. —The term 'Hquidi^ shortfall' mesuis, with respect to any required installment, an amount equal to the excess (as of the last day of the quarter for which such installment is made) of the base amount with respect to such quarter over the value (as of such last day) of the plan's Hquid assets. " (ii) BASE AMOUNT.— "(I) IN GENERAL.— The term *base amoimf means, with respect to any quarter, an amount equal to 3 times the sum of the a4justed disburse-
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