102 STAT. 3762 PUBLIC LAW 100-647—NOV. 10, 1988

"(i) IST CALENDAR YEAR.—With respect to compensa-
tion paid in calendar months before the end of the first
full calendar year in which the employer is subject to
this Act, the contribution rate shall be the average
contribution rate paid by all employers during the 3
calendar years preceding the calendar year before the
calendar year in which the compensation is paid. The
average contribution rate shall be determined—

"(I) by dividing the aggregate contributions paid
by all employers under this subsection in those 3
calendar years by the aggregate compensation with
respect to which such contributions were paid; and
"(II) by multiplying the resulting ratio as com-
puted to 4 decimal points by 100.
"(ii) 2o CALENDAR YEAR.—With respect to compensa-
tion paid in calendar months in the next calendar year,
the contribution rate shall be the smaller of—

"(I) the maximum contribution limit computed
under paragraph (20); or

"(II) the percentage rate computed pursuant to
the following formula:

/ 2CA2)+B x

"(iii) SD CALENDAR YEAR.—With respect to compensa-
tion paid in calendar months in the third full calendar
year in which the employer is subject to the coverage of
this Act, the contribution rate shall be the smaller of—
"(I) the maximum contribution limit computed
under paragraph (20); or

"(II) the percentage rate computed pursuant to
the following formula:

A3+2C

"(iv) SUBSEQUENT CALENDAR YEARS.—With respect to
all calendar months in calendar years subsequent to
that calendar year, the contribution rate shall be deter-
mined under subparagraph (C).

"(v) MEANING OF SYMBOLS.—For purposes of the for-
mulas in clauses (ii) and (iii)—

"(I) 'R' is the applicable contribution rate
expressed as a percentage for months in the
calendar year;