Calculation of the Funding Target Curve Sample Clauses

Calculation of the Funding Target Curve. (1) If a Revised Funding Start Year is before or the same as the year of the Contract Expiration Date, then once the Contract Expiration Target Amount is calculated, the levelized annual principal contribution needed to yield the Contract Expiration Target Amount at the Contract Expiration Date can be determined. For the initial Exhibit 1A the principal funding period is ten (10) years and the discount rate used is as described in the above general assumptions. Using the assumptions described and a mid-year convention for principal contributions and reclamation cash flows, the required annual principal contribution for Exhibit 1A was calculated at $1,183,489 ($2,704,223 for Exhibit 1B). Future updates to Exhibit 1A shall use a principal funding period that begins with the Revised Funding Start Year and ends on the then current Contract Expiration Date (12/31/2017 for the initial Exhibit 1A). The starting balance for the principal calculation shall be the Funding Target Curve value of the Exhibit 1A being revised one year earlier than the Revised Funding Start Year. After the necessary principal contribution is calculated, the projected annual balances of the Trusts up through the year of the Contract Expiration Date can be determined by taking the previous year’s balance, adding the annual principal contribution, and adding the growth component. The resulting schedule of annual balances for this period is the Funding Target Curve.