### Question
How is the term required annual payment defined?


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

> 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 (c) thereof), or


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

#### Citation:
  - *29 U.S.C. § 1082*
  - Heading: **CHAPTER 17-COMPREHENSIVE EMPLOYMENT AND TRAINING PROGRAMS > SUBCHAPTER I-PROTECTION OF EMPLOYEE BENEFIT RIGHTS > Subtitle B-Regulatory Provisions > part 3-funding**

