### Question
Can you define what required annual payment means?


### Answer
**Required annual payment** is defined as the following in *29 U.S.C. § 1082*:

> the lesser of—


(i) 90 percent of the amount required to be contributed to or under the plan by the employer for the plan year under section 412 of title 26 (without regard to any waiver under subsection (d) thereof), or


(ii) 100 percent of the amount so required for the preceding plan year

#### Citation:
  - *29 U.S.C. § 1082*
  - Heading: **CHAPTER 18-EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM > SUBCHAPTER I-PROTECTION OF EMPLOYEE BENEFIT RIGHTS > Subtitle B-Regulatory Provisions > part 3-funding**

