Cushion amount
For purposes of paragraph (2)(A)(i)(III)—
(A) In general The cushion amount for any plan year is the sum of— (i) 50 percent of the funding target for the plan year, and (ii) the amount by which the funding target for the plan year would increase if the plan were to take into account— (I) increases in compensation which are expected to occur in succeeding plan years, or (II) if the plan does not base benefits for service to date on compensation, increases in benefits which are expected to occur in succeeding plan years (determined on the basis of the average annual increase in benefits over the 6 immediately preceding plan years).
(B) Limitations (i) In general In making the computation under subparagraph (A)(ii), the plan’s actuary shall assume that the limitations under subsection ( l ) and section 415(b) shall apply. (ii) Expected increases In the case of a plan year during which a plan is covered under section 4021 of the Employee Retirement Income Security Act of 1974, the plan’s actuary may, notwithstanding subsection ( l ), take into account increases in the limitations which are expected to occur in succeeding plan years.
(A)In general#
The cushion amount for any plan year is the sum of—
(i) 50 percent of the funding target for the plan year, and
(ii) the amount by which the funding target for the plan year would increase if the plan were to take into account— (I) increases in compensation which are expected to occur in succeeding plan years, or (II) if the plan does not base benefits for service to date on compensation, increases in benefits which are expected to occur in succeeding plan years (determined on the basis of the average annual increase in benefits over the 6 immediately preceding plan years).
(A)(i)#
50 percent of the funding target for the plan year, and
(A)(ii)#
the amount by which the funding target for the plan year would increase if the plan were to take into account—
(I) increases in compensation which are expected to occur in succeeding plan years, or
(II) if the plan does not base benefits for service to date on compensation, increases in benefits which are expected to occur in succeeding plan years (determined on the basis of the average annual increase in benefits over the 6 immediately preceding plan years).
(A)(ii)(I)
(B)Limitations#
(i) In general In making the computation under subparagraph (A)(ii), the plan’s actuary shall assume that the limitations under subsection ( l ) and section 415(b) shall apply.
(ii) Expected increases In the case of a plan year during which a plan is covered under section 4021 of the Employee Retirement Income Security Act of 1974, the plan’s actuary may, notwithstanding subsection ( l ), take into account increases in the limitations which are expected to occur in succeeding plan years.
(B)(i)In general#
In making the computation under subparagraph (A)(ii), the plan’s actuary shall assume that the limitations under subsection ( l ) and section 415(b) shall apply.
(B)(ii)Expected increases#
In the case of a plan year during which a plan is covered under section 4021 of the Employee Retirement Income Security Act of 1974, the plan’s actuary may, notwithstanding subsection ( l ), take into account increases in the limitations which are expected to occur in succeeding plan years.