is calculated as of the last day of such plan year using the unit credit funding method. (d) Definitions and special rules For purposes of this section— (1) State or local government applicable retirement plan The term State or local government applicable retirement plan means any plan described in clause (i), (ii), (iii), or (iv) of section 219(g)(5)(A) (other than a defined contribution plan (within the meaning of section 414(i))), which is maintained by a State, a political subdivision of a State, or any agency or instrumentality of a State or political subdivision of a State. (2) Funding percentage The term funding percentage for a plan year means the ratio (expressed as a percentage) which— (A) the value of plan assets as of the end of the plan year, bears to (B) the plan liability of the plan for the plan year. (3) Plan liability The term plan liability of a plan for a plan year means the present value of all benefits accrued or earned under the plan as of the last day of the plan year. (4) Current cost The term current cost of a plan for a plan year means the present value as of the end of the plan year of all benefits accrued or earned under the plan during the plan year. (5) Plan sponsor The term plan sponsor means, in connection with a State or local government applicable retirement plan, the State, political subdivision of a State, or agency or instrumentality of a State or a political subdivision of a State which establishes or maintains the plan. For purposes of report filing requirements under this section, such term shall include the administrator of the plan on behalf of the plan sponsor in the case of a plan which is not administered by the plan sponsor. (6) Participant (A) In general The term participant means, in connection with a State or local government applicable retirement plan, an individual— (i) who is an employee or former employee of a State, political subdivision of a State, or agency or instrumentality of a State or a political subdivision of a State which is the plan sponsor of