When unfunded liability bases are amortized over a fractional period (for example, 15.25 years), level annual installments are determined for the whole years (for example, $10,000 for 15 years) and a fractional installment is determined for the last year (for example, $2,500 in the last year).

EXAMPLE

Suppose a liability of $100,000 is be amortized over 4.75 years at 8%. The amortization payment is equal to $100,000 divided by the following sum:

The details of the amortization schedule are as follows:

year	B.O.Y. balance	B.O.Y. payment	Remaining periods
1	100,000.00	24,222.64	4.75
2	81,839.55	24,222.64	3.75
3	62,226.26	24,222.64	2.75
4	41,043.92	24,222.64	1.75
5	18,166.98	18,166.98	0.75
6	0.00

Note that the final installment of $18,166.98 is equal to 0.75 times the level annual installments of $24,222.64.