Short plan year - Target Normal Cost

[Dinosaur]

I have a short plan year (7/1/2009 to 12/31/2009) beginning of year valuation. I could only find in the regulations that the amortization payment is prorated for the short plan year.

Did I miss it or is the Target Normal Cost for the full year (not prorated)?

[SoCalActuary]

I have a short plan year (7/1/2009 to 12/31/2009) beginning of year valuation. I could only find in the regulations that the amortization payment is prorated for the short plan year.

Did I miss it or is the Target Normal Cost for the full year (not prorated)?

If your benefit accrual in the short year is smaller because it is a short year, then your TNC is smaller; but the basis of the TNC is to pay for the benefit being earned in the period.