The SPARR is used in the calculation of the liability for benefits determined under section 4022(c) of ERISA, which provides participants with a portion of PBGC’s recoveries. The SPARR is determined by PBGC for terminations initiated in a given fiscal year based on actual recoveries and unfunded benefit liabilities for plan terminations initiated during the preceding 5 years. As of the end of fiscal year 2004, the SPARR had been calculated for plan terminations initiated in fiscal years 1991-2002. Because subsequent SPARRs have not been calculated, the 2002 SPARR is assumed for fiscal years 2003 and 2004.

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