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TITLE 26-INTERNAL REVENUE CODE years (20 plan years in the case of a mul- tiemployer plan), and (v) separately, with respect to each plan year, the net loss (if any) resulting from changes in actuarial assumptions used under the plan, over a period of 30 plan years, (C) the amount necessary to amortize each waived funding deficiency (within the meaning of subsection (d)(3)) for each prior plan year in equal annual installments (until fully amortized) over a period of 15 plan years, and (D) the amount necessary to amortize in equal annual installments (until fully amor- tized) over a period of 5 plan years any amount credited to the funding standard account under paragraph (3)(D). (3) Credits to account For a plan year, the funding standard ac- count shall be credited with the sum of- (A) the amount considered contributed by the employer to or under the plan for the plan year, (B) the amount necessary to amortize in equal annual installments (until fully amor- tized)- (I) separately, with respect t.n each plan year, the net decrease (if any) in unfund- ed past service liability under the plan arising from plan amendments adopted in such year, over a period of 30 plan years (40 plan years in the case of a multiem- ployer plan), (ii) separately, with respect to each plan year, the net experience gain (if any) under the plan, over a period of 15 plan years (20 plan years in the case of a mul- tlemployer plan), and (iii) separately, with respect to each plan year, the net gain (if any) resulting from changes in actuarial assumptions used under the plan, over a period of 30 plan years, (C) the amount of the waived funding de- ficiency (within the meaning of subsection (d)(3) for the plan year, and (D) in the case of a plan year for which the accumulated funding deficiency is de- termined under the funding standard ac- count if such plan year follows a plan year for which such deficiency was determined under the alternative minimum funding standards, the excess (if any) of any debit balance in the funding standard account (determined without regard to this subpara- graph) over any debit balance in the alter- native minimum funding standard account. (4) Combining and offsetting amounts to be amor- tized Under regulationm prescribed by the Secre- tary, amounts required to be amortized under paragraph (2) or paragraph (3), as the case may be- (A) may be combined into one amount under such paragraph to be amortized over a period determined on the basis of the re- maining amortization period for all items entering into such combined amount, and (B) may be offset against amounts re- quired to be amortized under the other such paragraph, with the resulting amount to be amortized over a period determined on the basis of the remaining amortization pe- riods for all items entering into whichever of the two amounts being offset is the greater. (5) Interest The funding standard account (and items therein) shall be charged or credited (as de- termined under regulations prescribed by the Secretary) with interest at the appropriate rate consistent with the rate or rates of inter- est used under the plan to determine costs. (c) Special rules (I) Determinations to be made under funding method For purposes of this section, normal costs, accrued liability, past service liabilities, and experience gains and losses shall be deter- mined under the funding method used to de- termine costs under the plan. (2) Valuation of assets (A) In general For purposes of this section, the value of the plan's assets shall be determined on the basis of any reasonable actuarial method of valuation which takes into account fair market value and which is permitted under regulations prescribed by the Secretary. (B) Election with respect to bonds The value of a bond or other evidence of indebtedness which is not in default as to principal or interest may, at the election of the plan administrator, be determined on an amortized basis running from initial cost at purchase to par value at maturity or ear- liest call date. Any election under this sub- paragraph shall be made at such time and in such manner as the Secretary shall by regulations provide, shall apply to all such evidences of indebtedness, and may be re- voked only with the consent of the Secre- tary. (3) Actuarial assumptions must be reasonable For purposes of this section, all costs, liabil- ities, rates of interest, and other factors under the plan shall be determined on the basis of actuarial assumptions and methods which, in the aggregate, are reasonable (taking into account the experience of the plan and reasonable expectations) and which, in combination, offer the actuary's best esti- mate of anticipated experience under the plan. (4) Treatment of certain changes as experience gain or loss For purposes of this section, if- (A) a change in benefits under the Social Security Act or in other retirement benefits created under Federal or State law, or (B) a change in the definition of the term "wages" under section 3121, or a change in the amount of such wages taken into ac- count under regulations prescribed for pur- poses of section 401(a)(5), results in an increase or decrease in accrued liability under a plan, such increase or de- crease shall be treated as an experience loss or gain. Page 333