120 STAT. 828
PUBLIC LAW 109–280—AUG. 17, 2006 (f)(4)(A)) is equal to or greater than the funding target of the plan for the plan year, the shortfall amortization base of the plan for such plan year shall be zero. ‘‘(B) TRANSITION RULE.— ‘‘(i) IN GENERAL.—Except as provided in clauses (iii) and (iv), in the case of plan years beginning after 2007 and before 2011, only the applicable percentage of the funding target shall be taken into account under paragraph (3)(A) in determining the funding shortfall for the plan year for purposes of subparagraph (A). ‘‘(ii) APPLICABLE PERCENTAGE.—For purposes of subparagraph (A), the applicable percentage shall be 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 (i) shall not apply with respect to any plan year after 2008 unless the shortfall amortization base for each of the preceding years beginning after 2007 was zero (determined after application of this subparagraph). ‘‘(iv) TRANSITION RELIEF NOT AVAILABLE FOR NEW OR DEFICIT REDUCTION PLANS.—Clause (i) shall not apply to a plan— ‘‘(I) which was not in effect for a plan year beginning in 2007, or ‘‘(II) which was in effect for a plan year beginning in 2007 and which was subject to section 412(l) (as in effect for plan years beginning in 2007), determined after the application of paragraphs (6) and (9) thereof. ‘‘(6) EARLY DEEMED AMORTIZATION UPON ATTAINMENT OF FUNDING TARGET.—In any case in which the funding shortfall of a plan for a plan year is zero, for purposes of determining the shortfall amortization charge for such plan year and succeeding plan years, the shortfall amortization bases for all preceding plan years (and all shortfall amortization installments determined with respect to such bases) shall be reduced to zero. ‘‘(d) RULES RELATING TO FUNDING TARGET.—For purposes of this section— ‘‘(1) FUNDING TARGET.—Except as provided in subsection (i)(1) with respect to plans in at-risk status, the funding target of a plan for a plan year is the present value of all benefits accrued or earned under the plan as of the beginning of the plan year. ‘‘(2) FUNDING TARGET ATTAINMENT PERCENTAGE.—The ‘funding target attainment percentage’ of a plan for a plan year is the ratio (expressed as a percentage) which— ‘‘(A) the value of plan assets for the plan year (as reduced under subsection (f)(4)(B)), bears to ‘‘(B) the funding target of the plan for the plan year (determined without regard to subsection (i)(1)). ‘‘(e) WAIVER AMORTIZATION CHARGE.—
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