1.This Act may be cited as
the Multiemployer Plan Funding and
Deduction Reform Act of 2005
.
<enum>I</enum><header>Funding rules for
multiemployer defined benefit plans</header>
<section id="id176FB9BB5F984F328BF185BF3A039250"><enum>101.</enum><header>Funding rules
for multiemployer defined benefit plans</header>
<subsection id="idF0B205DF4DC346339E67854908B52EC8"><enum>(a)</enum><header>In
general</header><text>Part 3 of subtitle B of title I of the Employee
Retirement Income Security Act of 1974 is amended by inserting after section
302 the following new section:</text>
<quoted-block display-inline="no-display-inline" id="id4F41756843524E23B65993CD3C4BE124" style="traditional">
<section id="idCA3F545AF4A14C338B766B47E8783398"><enum>302A.</enum><header>Minimum
funding standards for multiemployer plans</header><subsection commented="no" display-inline="yes-display-inline" id="idEC78CBE7E9454D79B1BD662D347D09E2"><enum>(a)</enum><header>In general
</header><text>For purposes of section 302, the accumulated funding deficiency
of a multi-employer plan for any plan year is—</text>
<paragraph id="ID61cead906596436caf4b2d9cade0ac23"><enum>(1)</enum><text>except as
provided in paragraph (2), the amount, determined as of the end of the plan
year, equal to the excess (if any) of the total charges to the funding standard
account of the plan for all plan years (beginning with the first plan year for
which this part applies to the plan) over the total credits to such account for
such years, and</text>
</paragraph><paragraph id="ID3870e950a65c493b97c815e4fcd43af6"><enum>(2)</enum><text>if the
multiemployer plan is in reorganization any plan year, the accumulated funding
deficiency of the plan determined under section 4243.</text>
</paragraph></subsection><subsection id="IDecf6a8f5b30d47a3adbff4d30a4227c4"><enum>(b)</enum><header>Funding
standard account</header>
<paragraph id="ID91bf6b9714ea4efbb519ccd289d82055"><enum>(1)</enum><header>Account
required</header><text>Each multiemployer plan to which this part applies shall
establish and maintain a funding standard account. Such account shall be
credited and charged solely as provided in this section.</text>
</paragraph><paragraph id="ID6f6f8d5ed25845d98586ddf5741e3e10"><enum>(2)</enum><header>Charges to
account</header><text>For a plan year, the funding standard account shall be
charged with the sum of—</text>
<subparagraph id="ID793cfc9f48334918aac6e18dddce0fa6"><enum>(A)</enum><text>the normal cost
of the plan for the plan year,</text>
</subparagraph><subparagraph id="IDe126db2168a547e0a5e40fe46fdec10c"><enum>(B)</enum><text>the amounts
necessary to amortize in equal annual installments (until fully
amortized)—</text>
<clause id="IDcf3e2c7b2a6c41ad9d2fcd4e8e931a4c"><enum>(i)</enum><text>in the case of a
plan in existence on January 1, 1974, the unfunded past service liability under
the plan on the first day of the first plan year to which this section applies,
over a period of 40 plan years,</text>
</clause><clause id="ID765931e866764449b3fa9ffe1b8bb516"><enum>(ii)</enum><text>in the case of a
plan which comes into existence after January 1, 1974, the unfunded past
service liability under the plan on the first day of the first plan year to
which this section applies, over a period of 15 plan years,</text>
</clause><clause id="IDf5a8308c413d42779ec0bf034abfcdff"><enum>(iii)</enum><text>separately,
with respect to each plan year, the net increase (if any) in unfunded past
service liability under the plan arising from plan amendments adopted in such
year, over a period of 15 plan years,</text>
</clause><clause id="IDf09bd2a378e74524830a9230c7c05782"><enum>(iv)</enum><text>separately, with
respect to each plan year, the net experience loss (if any) under the plan,
over a period of 15 plan years, and</text>
</clause><clause id="ID44d92fd0a1754e329f27bf9c63397dea"><enum>(v)</enum><text>separately, with
respect to each plan year, the net loss (if any) resulting from changes in
actuarial assumptions used under the plan, over a period of 15 plan
years,</text>
</clause></subparagraph><subparagraph id="ID2e89e8d8161843e495377bb98ac74b80"><enum>(C)</enum><text>the amount
necessary to amortize each waived funding deficiency (within the meaning of
section 302(c)(3)) for each prior plan year in equal annual installments (until
fully amortized) over a period of 15 plan years,</text>
</subparagraph><subparagraph id="IDeb5d62c8cb3b4df9ad98602b8df683b9"><enum>(D)</enum><text>the amount
necessary to amortize in equal annual installments (until fully amortized) over
a period of 5 plan years any amount credited to the funding standard account
under section 302(b)(3)(D) (as in effect on the day before the date of the
enactment of the Multiemployer Plan Funding and Deduction Reform Act of 2005),
and</text>
</subparagraph><subparagraph id="ID942e934c9942472ea772f0d8a9344005"><enum>(E)</enum><text>the amount
necessary to amortize in equal annual installments (until fully amortized) over
a period of 20 years the contributions which would be required to be made under
the plan but for the provisions of section 302 (c)(7)(A)(i)(I) (as in effect on
the day before the date of the enactment of the Multiemployer Plan Funding and
Deduction Reform Act of 2005).</text>
</subparagraph></paragraph><paragraph id="ID169687cfa8544beba73611d609be3322"><enum>(3)</enum><header>Credits to
account</header><text>For a plan year, the funding standard account shall be
credited with the sum of—</text>
<subparagraph id="IDa05ba142da304f3397f076c0cd130eea"><enum>(A)</enum><text>the amount
considered contributed by the employer to or under the plan for the plan
year,</text>
</subparagraph><subparagraph id="ID54c7261418ec4109acc961c8e2a657a7"><enum>(B)</enum><text>the amount
necessary to amortize in equal annual installments (until fully
amortized)—</text>
<clause id="ID773a6e567b7748eea0f8ddf2cce585d5"><enum>(i)</enum><text>separately, with
respect to each plan year, the net decrease (if any) in unfunded past service
liability under the plan arising from plan amendments adopted in such year,
over a period of 15 plan years,</text>
</clause><clause id="IDc684b4df114d4f25b60dcd57f0c56c9b"><enum>(ii)</enum><text>separately, with
respect to each plan year, the net experience gain (if any) under the plan,
over a period of 15 plan years, and</text>
</clause><clause id="ID7f4ced33bcb44342a52fa4c9ba112793"><enum>(iii)</enum><text>separately,
with respect to each plan year, the net gain (if any) resulting from changes in
actuarial assumptions used under the plan, over a period of 15 plan
years,</text>
</clause></subparagraph><subparagraph id="ID3d31f0ab70c0403b9f7e45882cbab88e"><enum>(C)</enum><text>the amount of the
waived funding deficiency (within the meaning of section 302(c)(3)) for the
plan year; and</text>
</subparagraph><subparagraph id="ID8c093f7efa6e4b2f91aa3b082dd12ee9"><enum>(D)</enum><text>in the case of a
plan year for which the accumulated funding deficiency is determined under the
funding standard account if such plan year follows a plan year for which such
deficiency was determined under the alternative minimum funding standard under
section 305 (as in effect on the day before the date of the enactment of the
Multiemployer Plan Funding and Deduction Reform Act of 2005), the excess (if
any) of any debit balance in the funding standard account (determined without
regard to this subparagraph) over any debit balance in the alternative minimum
funding standard account.</text>
</subparagraph></paragraph><paragraph id="ID7edd4c5647c7466493dfac1700155872"><enum>(4)</enum><header>Special rule
for amounts first amortized to plan years before 2006</header><text>In the case
of any amount amortized under section 302(b) (as in effect on the day before
the date of the enactment of the Multiemployer Plan Funding and Deduction
Reform Act of 2005) over any period beginning with a plan year beginning before
2006, in lieu of the amortization described in paragraphs (2)(B) and (3)(B),
such amount shall continue to be amortized under such section as so in
effect.</text>
</paragraph><paragraph id="IDc34e34fd353947cdab7a13d47cc464cf"><enum>(5)</enum><header>Combining and
offsetting amounts to be amortized</header><text>Under regulations prescribed
by the Secretary of the Treasury, amounts required to be amortized under
paragraph (2) or paragraph (3), whichever is applicable—</text>
<subparagraph id="ID3d6c4251edb14a8084d8e420dc24a039"><enum>(A)</enum><text>may be combined
into one amount under such paragraph to be amortized over a period determined
on the basis of the remaining amortization period for all items entering into
such combined amount, and</text>
</subparagraph><subparagraph id="ID45341d6bdaef450d90c1746aa554c8d5"><enum>(B)</enum><text>may be offset
against amounts required to be amortized under the other such paragraph, with
the resulting amount to be amortized over a period determined on the basis of
the remaining amortization periods for all items entering into whichever of the
two amounts being offset is the greater.</text>
</subparagraph></paragraph><paragraph id="IDf16909d61ed743fda873924f41a67dc7"><enum>(6)</enum><header>Interest</header><text>Except
as provided in sub-section (c)(9), the funding standard account (and items
therein) shall be charged or credited (as determined under regulations
prescribed by the Secretary of the Treasury) with interest at the appropriate
rate consistent with the rate or rates of interest used under the plan to
determine costs.</text>
</paragraph><paragraph id="IDca35cafa589c48508a10827b8933821a"><enum>(7)</enum><header>Certain
amortization charges and credits</header><text>In the case of a plan which,
immediately before the date of the enactment of the Multiemployer Pension Plan
Amendments Act of 1980, was a multiemployer plan (within the meaning of section
3(37) as in effect immediately before such date)—</text>
<subparagraph id="ID5fe7adf9c53a4beaa148bd6d82803317"><enum>(A)</enum><text>any amount
described in paragraph (2)(B)(ii), (2)(B)(iii), or (3)(B)(i) of this
sub-section which arose in a plan year beginning before such date shall be
amortized in equal annual installments (until fully amortized) over 40 plan
years, beginning with the plan year in which the amount arose,</text>
</subparagraph><subparagraph id="ID517da38e4b1749cfbe9fab4723939175"><enum>(B)</enum><text>any amount
described in paragraph (2)(B)(iv) or (3)(B)(ii) of this subsection which arose
in a plan year beginning before such date shall be amortized in equal annual
installments (until fully amortized) over 20 plan years, beginning with the
plan year in which the amount arose,</text>
</subparagraph><subparagraph id="IDd74e597eaa354fb2aa0ee94e20762591"><enum>(C)</enum><text>any change in
past service liability which arises during the period of 3 plan years beginning
on or after such date, and results from a plan amendment adopted before such
date, shall be amortized in equal annual installments (until fully amortized)
over 40 plan years, beginning with the plan year in which the change arises,
and</text>
</subparagraph><subparagraph id="ID31a8459832054d8b882a066f5ac2ccb5"><enum>(D)</enum><text>any change in
past service liability which arises during the period of 2 plan years beginning
on or after such date, and results from the changing of a group of participants
from one benefit level to another benefit level under a schedule of plan
benefits which—</text>
<clause id="ID6720b8d0992348c99a1e52835fe8a21f"><enum>(i)</enum><text>was adopted
before such date, and</text>
</clause><clause id="ID7892782d022a49e3b74e078c663af8df"><enum>(ii)</enum><text>was effective
for any plan participant before the beginning of the first plan year beginning
on or after such date, shall be amortized in equal annual installments (until
fully amortized) over 40 plan years, beginning with the plan year in which the
change arises.</text>
</clause></subparagraph></paragraph><paragraph id="ID043202094c9a434796d6b64fb46cd13e"><enum>(8)</enum><header>Special rules
relating to charges and credits to funding standard account</header><text>For
purposes of this part—</text>
<subparagraph id="ID9e9c9e05a132484c803a224d9f21c868"><enum>(A)</enum><header>Withdrawal
liability</header><text>Any amount received by a multiemployer plan in payment
of all or part of an employer’s withdrawal liability under part 1 of subtitle E
of title IV shall be considered an amount contributed by the employer to or
under the plan. The Secretary of the Treasury may prescribe by regulation
additional charges and credits to a multiemployer plan’s funding standard
account to the extent necessary to prevent withdrawal liability payments from
being unduly reflected as advance funding for plan liabilities.</text>
</subparagraph><subparagraph id="ID31afec0d6f674e52b2775341241c9892"><enum>(B)</enum><header>Adjustments
when a multiemployer plan leaves reorganization</header><text>If a
multiemployer plan is not in reorganization in the plan year but was in
reorganization in the immediately preceding plan year, any balance in the
funding standard account at the close of such immediately preceding plan
year—</text>
<clause id="ID03d1a69c92504dd4aa4c2405a391b85b"><enum>(i)</enum><text>shall be
eliminated by an offsetting credit or charge (as the case may be), but</text>
</clause><clause id="ID727ac97e70b94fb3a2ac72010f71a129"><enum>(ii)</enum><text>shall be taken
into account in subsequent plan years by being amortized in equal annual
installments (until fully amortized) over 30 plan years. The preceding sentence
shall not apply to the extent of any accumulated funding deficiency under
section 4243 (a) as of the end of the last plan year that the plan was in
reorganization.</text>
</clause></subparagraph><subparagraph id="ID7fe6fac066184ecf993a4675de58d54d"><enum>(C)</enum><header>Plan payments
to supplemental program or withdrawal liability payment fund</header><text>Any
amount paid by a plan during a plan year to the Pension Benefit Guaranty
Corporation pursuant to section 4222 of this Act or to a fund exempt under
section 501(c)(22) of the Internal Revenue Code of 1986 pursuant to section
4223 of this Act shall reduce the amount of contributions considered received
by the plan for the plan year.</text>
</subparagraph><subparagraph id="IDec0f2c409d104c79bafe8928e8f64c35"><enum>(D)</enum><header>Interim
withdrawal liability payments</header><text>Any amount paid by an employer
pending a final determination of the employer’s withdrawal liability under part
1 of subtitle E of title IV and subsequently refunded to the employer by the
plan shall be charged to the funding standard account in accordance with
regulations prescribed by the Secretary of the Treasury.</text>
</subparagraph><subparagraph id="ID6bd8dc376077464a82767d74ce496e47"><enum>(E)</enum><header>Election for
deferral of charge for portion of net experience loss</header><text>If an
election is in effect under section 302(b)(7)(F) (as in effect on the day
before the date of the enactment of the Multiemployer Plan Funding and
Deduction Reform Act of 2005) for any plan year, the funding standard account
shall be charged in the plan year to which the portion of the net experience
loss deferred by such election was deferred with the amount so deferred (and
paragraph (2)(B)(iv) shall not apply to the amount so charged).</text>
</subparagraph><subparagraph id="ID09640d505ae442ff846bf6e733808ed3"><enum>(F)</enum><header>Financial
assistance</header><text>Any amount of any financial assistance from the
Pension Benefit Guaranty Corporation to any plan, and any repayment of such
amount, shall be taken into account under this section and section 412 of the
Internal Revenue Code of 1986 in such manner as is determined by the Secretary
of the Treasury.</text>
</subparagraph><subparagraph id="ID6da9d0051c9b4db7852f458b19ea9bb1"><enum>(G)</enum><header>Short-term
benefits</header><text>To the extent that any plan amendment increases the
unfunded past service liability under the plan by reason of an increase in
benefits which, by its terms, is payable under the plan for a period that does
not exceed 14 years from the effective date of such amendment, paragraph
(2)(B)(iii) shall be applied separately with respect to such increase in
unfunded past service liability by substituting the number of years of the
period during which such benefits are payable for <quote>15</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="ID32ef00acd6a842d6b67c6914807debd3"><enum>(c)</enum><header>Additional
rules</header>
<paragraph id="IDb9dd41634169468cbc41f31e8d256441"><enum>(1)</enum><header>Determinations
to be made under funding method</header><text>For purposes of this part, normal
costs, accrued liability, past service liabilities, and experience gains and
losses shall be determined under the funding method used to determine costs
under the plan.</text>
</paragraph><paragraph id="ID9e90fa41e7b748788fe39b5e6334f350"><enum>(2)</enum><header>Valuation of
assets</header>
<subparagraph id="id024ABF3DA301464981B22ACFD2D30E10"><enum>(A)</enum><header>In
general</header><text>For purposes of this part, the value of the plan’s assets
shall be determined on the basis of any reasonable actuarial method of
valuation which takes into account fair market value and which is permitted
under regulations prescribed by the Secretary of the Treasury.</text>
</subparagraph><subparagraph id="ID459b762142c54fbeb07f883eb7d0bdc7"><enum>(B)</enum><header>Election with
respect to bonds</header><text>The value of a bond or other evidence of
indebtedness which is not in default as to principal or interest may, at the
election of the plan administrator, be determined on an amortized basis running
from initial cost at purchase to par value at maturity or earliest call date.
Any election under this subparagraph shall be made at such time and in such
manner as the Secretary of the Treasury shall by regulations provide, shall
apply to all such evidences of indebtedness, and may be revoked only with the
consent of such Secretary.</text>
</subparagraph></paragraph><paragraph id="ID7c3adbdfded04bd19779868cbea6a1da"><enum>(3)</enum><header>Actuarial
assumptions must be reasonable</header><text>For purposes of this section, all
costs, liabilities, rates of interest, and other factors under the plan shall
be determined on the basis of actuarial assumptions and methods—</text>
<subparagraph id="ID8f14c88a263a4108b66905505fd6e6dd"><enum>(A)</enum><text>each of which is
reasonable (taking into account the experience of the plan and reasonable
expectations), and</text>
</subparagraph><subparagraph id="IDe237284fbd8a42638fe6183d0a9390a6"><enum>(B)</enum><text>which, in
combination, offer the actuary’s best estimate of anticipated experience under
the plan.</text>
</subparagraph></paragraph><paragraph id="ID1dfd3b9630364c56810d323bcad87179"><enum>(4)</enum><header>Treatment of
certain changes as experience gain or loss</header><text>For purposes of this
section, if—</text>
<subparagraph id="IDb7e76dead18743198a134d0d50c60c16"><enum>(A)</enum><text>a change in
benefits under the Social Security Act or in other retirement benefits created
under Federal or State law, or</text>
</subparagraph><subparagraph id="ID1873538b35d14380976b6035b496a973"><enum>(B)</enum><text>a change in the
definition of the term <quote>wages</quote> under section 3121 of the Internal
Revenue Code of 1986, or a change in the amount of such wages taken into
account under regulations prescribed for purposes of section 401(a)(5) of such
Code,</text>
</subparagraph><continuation-text continuation-text-level="paragraph">results in
an increase or decrease in accrued liability under a plan, such increase or
decrease shall be treated as an experience loss or gain.</continuation-text></paragraph><paragraph id="IDae4981d7475143378625d1ac0d5614a9"><enum>(5)</enum><header>Full
funding</header><text>If, as of the close of a plan year, a plan would (without
regard to this paragraph) have an accumulated funding deficiency in excess of
the full funding limitation—</text>
<subparagraph id="ID260e20ee09154b1aabd002620df09cea"><enum>(A)</enum><text>the funding
standard account shall be credited with the amount of such excess, and</text>
</subparagraph><subparagraph id="IDb96839c2aa6744b5aa10c5d0ad34fa72"><enum>(B)</enum><text>all amounts
described in subparagraphs (B), (C), and (D) of subsection (b)(2) and
subparagraph (B) of subsection (b)(3) which are required to be amortized shall
be considered fully amortized for purposes of such subparagraphs.</text>
</subparagraph></paragraph><paragraph id="ID529bb2d282544aaa8327e56cc8dc8fe3"><enum>(6)</enum><header>Full-funding
limitation</header>
<subparagraph id="id0C3A531111FB40479BB28EB4197E0203"><enum>(A)</enum><header>In
general</header><text>For purposes of paragraph (5), the term
<term>full-funding limitation</term> means the excess (if any) of—</text>
<clause id="IDfa39e8c48c8b41c395215c417e917c55"><enum>(i)</enum><text>the accrued
liability (including normal cost) under the plan (determined under the entry
age normal funding method if such accrued liability cannot be directly
calculated under the funding method used for the plan), over</text>
</clause><clause id="IDf44869c30c7846718657a801301b0b53"><enum>(ii)</enum><text>the lesser
of—</text>
<subclause id="ID7ad9519795f54346b9a253fd220fb8f0"><enum>(I)</enum><text>the fair market
value of the plan’s assets, or</text>
</subclause><subclause id="IDbba22cb99ce34b759665969b63cc1794"><enum>(II)</enum><text>the value of
such assets determined under paragraph (2).</text>
</subclause></clause></subparagraph><subparagraph id="ID214a08fef9314cbc94d30a58d377ee99"><enum>(B)</enum><header>Minimum
amount</header>
<clause id="id2E44739B8BD14E4783C73253C9845521"><enum>(i)</enum><header>In
general</header><text>In no event shall the full-funding limitation determined
under subparagraph (A) be less than the excess (if any) of—</text>
<subclause id="ID42bf8af5948f42a29ca2e84bf13c0e8b"><enum>(I)</enum><text>90 percent of the
current liability of the plan (including the expected increase in current
liability due to benefits accruing during the plan year), over</text>
</subclause><subclause id="ID93cee0ff2a4f4097ae3781020f8a82e2"><enum>(II)</enum><text>the value of the
plan’s assets determined under paragraph (2).</text>
</subclause></clause><clause id="IDab2f087354f14668ba1f342686841c3a"><enum>(ii)</enum><header>Assets</header><text>For
purposes of clause (i), assets shall not be reduced by any credit balance in
the funding standard account.</text>
</clause></subparagraph><subparagraph id="IDac71430561cc45b2b323200f85e6f1a8"><enum>(C)</enum><header>Full funding
limitation</header><text>For purposes of this paragraph, unless otherwise
provided by the plan, the accrued liability under a multiemployer plan shall
not include benefits which are not nonforfeitable under the plan after the
termination of the plan (taking into consideration section 411(d)(3) of the
Internal Revenue Code of 1986).</text>
</subparagraph><subparagraph id="IDd3feece5d5594900b0c8cf657713dcc1"><enum>(D)</enum><header>Current
liability</header><text>For purposes of this paragraph—</text>
<clause id="ID02770529a6b340f4994aead94e9b904f"><enum>(i)</enum><header>In
general</header><text>The term <term>current liability</term> means all
liabilities to employees and their beneficiaries under the plan.</text>
</clause><clause id="ID9084b9ae088d4143b0d3bb3479513cd7"><enum>(ii)</enum><header>Treatment of
unpredictable contingent event benefits</header><text>For purposes of clause
(i), any benefit contingent on an event other than—</text>
<subclause id="ID1b4fbe39b3624ba0a6b544251082a537"><enum>(I)</enum><text>age, service,
compensation, death, or disability, or</text>
</subclause><subclause id="IDa4041b582523486b993951d0ed1829fe"><enum>(II)</enum><text>an event which
is reasonably and reliably predictable (as determined by the Secretary of the
Treasury),</text>
</subclause><continuation-text continuation-text-level="clause">shall not be
taken into account until the event on which the benefit is contingent
occurs.</continuation-text></clause><clause id="ID84758975d567472f82d728d724e509b7"><enum>(iii)</enum><header>Interest rate
used</header><text>The rate of interest used to determine current liability
under this paragraph shall be the rate of interest determined under
subparagraph (E).</text>
</clause><clause id="ID3a1a6592620f45348920485e85cdddf4"><enum>(iv)</enum><header>Mortality
tables</header>
<subclause id="id1E5200476F5344848ACE0062C3417F22"><enum>(I)</enum><header>Commissioners’
standard table</header><text>In the case of plan years beginning before the
first plan year to which the first tables prescribed under subclause (II)
apply, the mortality table used in determining current liability under this
paragraph shall be the table prescribed by the Secretary of the Treasury which
is based on the prevailing commissioners’ standard table (described in section
807(d)(5)(A) of the Internal Revenue Code of 1986) used to determine reserves
for group annuity contracts issued on January 1, 1993.</text>
</subclause><subclause id="IDd6bc24512c3d48ac9ce5abffdd8f08ac"><enum>(II)</enum><header>Secretarial
authority</header><text>The Secretary of the Treasury may by regulation
prescribe for plan years beginning after December 31, 1999, mortality tables to
be used in determining current liability under this subsection. Such tables
shall be based upon the actual experience of pension plans and projected trends
in such experience. In prescribing such tables, such Secretary shall take into
account results of available independent studies of mortality of individuals
covered by pension plans.</text>
</subclause></clause><clause id="ID2ee90c4ccad841c58a54033e7289c5cf"><enum>(v)</enum><header>Separate
mortality tables for the disabled</header><text>Notwithstanding clause
(iv)—</text>
<subclause id="ID6dc946a5d529456eb05c6bd60fa19f9f"><enum>(I)</enum><header>In
general</header><text>In the case of plan years beginning after December 31,
1995, the Secretary of the Treasury shall establish mortality tables which may
be used (in lieu of the tables under clause (iv)) to determine current
liability under this subsection for individuals who are entitled to benefits
under the plan on account of disability. Such Secretary shall establish
separate tables for individuals whose disabilities occur in plan years
beginning before January 1, 1995, and for individuals whose disabilities occur
in plan years beginning on or after such date.</text>
</subclause><subclause id="ID306c0119c9224042a7dcfcd1e1ea6bfb"><enum>(II)</enum><header>Special rule
for disabilities occurring after 1994</header><text>In the case of disabilities
occurring in plan years beginning after December 31, 1994, the tables under
subclause (I) shall apply only with respect to individuals described in such
subclause who are disabled within the meaning of title II of the Social
Security Act and the regulations thereunder.</text>
</subclause></clause><clause id="IDc505154bb6054f19bc128c0d4ef46ba2"><enum>(vi)</enum><header>Periodic
review</header><text>The Secretary of the Treasury shall periodically (at least
every 5 years) review any tables in effect under this subparagraph and shall,
to the extent such Secretary determines necessary, by regulation update the
tables to reflect the actual experience of pension plans and projected trends
in such experience.</text>
</clause></subparagraph><subparagraph id="ID8c8288580942426ca99e17a69ac1c760"><enum>(E)</enum><header>Required change
of interest rate</header><text>For purposes of determining a plan’s current
liability for purposes of this paragraph—</text>
<clause id="IDf68d75ea299b4b748bbdd200b8d7b495"><enum>(i)</enum><header>In
general</header><text>If any rate of interest used under the plan under
subsection (b)(6) to determine cost is not within the permissible range, the
plan shall establish a new rate of interest within the permissible
range.</text>
</clause><clause id="ID2aea7a64d4c64b0a80d67a558251c44c"><enum>(ii)</enum><header>Permissible
range</header><text>For purposes of this subparagraph—</text>
<subclause id="ID4c414d1b52b44115badd79cb88ca76fe"><enum>(I)</enum><header>In
general</header><text>Except as provided in subclause (II), the term
`permissible range’ means a rate of interest which is not more than 5 percent
above, and not more than 10 percent below, the weighted average of the rates of
interest on 30-year Treasury securities during the 4-year period ending on the
last day before the beginning of the plan year.</text>
</subclause><subclause id="IDfdb6b0471f764d35b16c0407cdc1e4b3"><enum>(II)</enum><header>Secretarial
authority</header><text>If the Secretary of the Treasury finds that the lowest
rate of interest permissible under subclause (I) is unreasonably high, such
Secretary may prescribe a lower rate of interest, except that such rate may not
be less than 80 percent of the average rate determined under such
subclause.</text>
</subclause></clause><clause id="IDb64248b141ca4426bcc355ea2fd005b3"><enum>(iii)</enum><header>Assumptions</header><text>Notwithstanding
paragraph (3)(A), the interest rate used under the plan shall be—</text>
<subclause id="ID9164584a2e2d459baab8585f0c6865b8"><enum>(I)</enum><text>determined
without taking into account the experience of the plan and reasonable
expectations, but</text>
</subclause><subclause id="IDfa1750d172224029ab0d68b57b697915"><enum>(II)</enum><text>consistent with
the assumptions which reflect the purchase rates which would be used by
insurance companies to satisfy the liability under the plan.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="ID9fe2ca58b72042449aaf135cbed398bb"><enum>(7)</enum><header>Annual
valuation</header>
<subparagraph id="IDd2d5e6e7b63041dbbc1f7d2f2b9a5a13"><enum>(A)</enum><header>In
general</header><text>For purposes of this section, a determination of
experience gains and losses and a valuation of the plan’s liability shall be
made not less frequently than once every year, except that such determination
shall be made more frequently to the extent required in particular cases under
regulations prescribed by the Secretary of the Treasury.</text>
</subparagraph><subparagraph id="IDea36ce6f3c7145c8a04cfdb274857f85"><enum>(B)</enum><header>Valuation
date</header>
<clause id="idA73CCF4D825C40F6BEF4137DBDB6C338"><enum>(i)</enum><header>Current
year</header><text>Except as provided in clause (ii), the valuation referred to
in subparagraph (A) shall be made as of a date within the plan year to which
the valuation refers or within one month prior to the beginning of such
year.</text>
</clause><clause id="ID065e57cfc804499ebf7a1e7cc38f4827"><enum>(ii)</enum><header>Use of prior
year valuation</header><text>The valuation referred to in subparagraph (A) may
be made as of a date within the plan year prior to the year to which the
valuation refers if, as of such date, the value of the assets of the plan are
not less than 100 percent of the plan’s current liability (as defined in
paragraph (6)(D) without regard to clause (iv) thereof).</text>
</clause><clause id="ID7b3bfaf3e5ba4e07b7c06a5aec2cf70d"><enum>(iii)</enum><header>Adjustments</header><text>Information
under clause (ii) shall, in accordance with regulations, be actuarially
adjusted to reflect significant differences in participants.</text>
</clause><clause id="ID1fde0046b08d459a99fd3825516e2c44"><enum>(iv)</enum><header>Limitation</header><text>A
change in funding method to use a prior year valuation, as provided in clause
(ii), may not be made unless as of the valuation date within the prior plan
year, the value of the assets of the plan are not less than 125 percent of the
plan’s current liability (as defined in paragraph (6)(D) without regard to
clause (iv) thereof).</text>
</clause></subparagraph></paragraph><paragraph id="ID37d9963b255648ba86637ee4d9960a40"><enum>(8)</enum><header>Time when
certain contributions deemed made</header><text>For purposes of this section,
any contributions for a plan year made by an employer after the last day of
such plan year, but not later than two and one-half months after such day,
shall be deemed to have been made on such last day. For purposes of this
subparagraph, such two and one-half month period may be extended for not more
than six months under regulations prescribed by the Secretary of the
Treasury.</text>
</paragraph><paragraph id="ID3e85dd0d306743229d9e04af69eb595a"><enum>(9)</enum><header>Interest rule
for waivers and extensions</header><text>The interest rate applicable for any
plan year for purposes of computing the amortization charge described in
subsection (b) (2) (C) and in connection with an extension granted under
subsection (d) shall be the rate of interest used under the plan for
determining costs.</text>
</paragraph></subsection><subsection id="IDa7a86398194b42af91c1118e4b87aa64"><enum>(d)</enum><header>Extension of
amortization periods for multiemployer plans</header><text>In the case of a
multiemployer plan—</text>
<paragraph id="IDf693d109c8484ecb848db106ec26afe2"><enum>(1)</enum><header>Extension</header><text>The
period of years required to amortize any unfunded liability (described in any
clause of subsection (b)(2)(B) or (b)(4)) of any multiemployer plan meeting the
criteria of paragraph (2) shall be extended (in addition to any extension under
paragraph (2)) by the Secretary of the Treasury for a period of time as
requested by the plan in its application, but not in excess of 5 years.</text>
</paragraph><paragraph id="ID93ed1b5b222c4f5baff29d68915648db"><enum>(2)</enum><header>Criteria</header><text>A
multiemployer pension plan meets the criteria of this paragraph if its actuary
certifies that, based on reasonable assumptions—</text>
<subparagraph id="id602978F512024388A55EBB18727BE929"><enum>(A)</enum><text>absent the
extension, the plan would have an accumulated funding deficiency in the current
plan year or any of the 9 succeeding plan years,</text>
</subparagraph><subparagraph id="IDed30604fc29d48d8b659f8b6ad401bf6"><enum>(B)</enum><text>the plan sponsor
has adopted a plan to improve the plan's funding status, and</text>
</subparagraph><subparagraph id="ID6fa7bdac771a47b6960ed8291439f299"><enum>(C)</enum><text>the plan is
projected to have sufficient assets to timely pay expected benefits and
anticipated expenditures over the amortization period as extended.</text>
</subparagraph></paragraph><paragraph id="ID02e6f578c93540dab95f009ea12a25fe"><enum>(3)</enum><header>Additional
extension</header><text>The period of years required to amortize any unfunded
liability (described in any clause of subsection (b)(2)(B) or (b)(4)) of any
multiemployer plan may be extended (in addition to any extension under
paragraph (1) ) by the Secretary of the Treasury for a period of time (not in
excess of 5 years) if such Secretary determines that such extension would carry
out the purposes of this Act and would provide adequate protection for
participants under the plan and their beneficiaries and if he determines that
the failure to permit such extension would—</text>
<subparagraph id="IDb041f98d609b47639f62607d5edec9f1"><enum>(A)</enum><text>result in—</text>
<clause id="ID64b97e183c74403cbc7f10b98bc2d178"><enum>(i)</enum><text>a
substantial risk to the voluntary continuation of the plan, or</text>
</clause><clause id="IDb9458e93150a400688e33aaf086c8d49"><enum>(ii)</enum><text>a substantial
curtailment of pension benefit levels or employee compensation, and</text>
</clause></subparagraph><subparagraph id="ID451658acb56b4f88b4fa1e9add8911ee"><enum>(B)</enum><text>be adverse to the
interests of plan participants in the aggregate.</text>
</subparagraph><continuation-text continuation-text-level="paragraph">The
Secretary shall act upon any application for an extension under this paragraph
within 180 days of the submission of such application. If the Secretary rejects
the application for an extension under this paragraph, the Secretary shall
provide notice to the plan detailing the specific reasons for the rejection,
including references to the criteria set forth above.</continuation-text></paragraph><paragraph id="ID81950b6fa5aa48bf8558997df272af1f"><enum>(4)</enum><header>Advance
notice</header>
<subparagraph id="IDbc691d62ec6e49b3937456d011aee17b"><enum>(A)</enum><header>In
general</header><text>The Secretary of the Treasury shall, before granting an
extension under this section, require each applicant to provide evidence
satisfactory to such Secretary that the applicant has provided notice of the
filing of the application for such extension to each affected party (as defined
in section 4001(a)(21)) with respect to the affected plan. Such notice shall
include a description of the extent to which the plan is funded for benefits
which are guaranteed under title IV and for benefit liabilities.</text>
</subparagraph><subparagraph id="ID4dbb0b221df24c0da7d3c3b58bcf9206"><enum>(B)</enum><header>Consideration
of relevant information</header><text>The Secretary of the Treasury shall
consider any relevant information provided by a person to whom notice was given
under paragraph
(1).</text>
</subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID1372a9bfdbe04c83b71c704e412b0ea0"><enum>(b)</enum><header>Shortfall
funding method</header>
<paragraph id="id374585FB22094A0B9E11ED2CCF7DB58F"><enum>(1)</enum><header>In
general</header><text>A multiemployer plan meeting the criteria of paragraph
(2) shall be permitted to adopt, or to cease using, the shortfall funding
method. The adoption and use of such funding method, and the voluntary
cessation of the use of such method, shall be deemed approved by the Secretary
under section 302(c)(5).</text>
</paragraph><paragraph id="ID0f4e8434af6a4102a777e1207167501b"><enum>(2)</enum><header>Criteria</header><text>A
multiemployer pension plan meets the criteria of this clause if—</text>
<subparagraph id="ID082f16bbb80c40f187d6b3a12d6293d8"><enum>(A)</enum><text>5 plan years have
elapsed since the plan last elected to use (or cease the use of) the shortfall
funding method, and</text>
</subparagraph><subparagraph id="IDccf91133bab743689dbb3a85bd6e08a3"><enum>(B)</enum><text>the plan is not
operating under an amortization period extension under subsection (d).</text>
</subparagraph></paragraph><paragraph id="IDa8c7e4eb807a42f4bc5971cee3bddf39"><enum>(3)</enum><header>Shortfall
funding method defined</header><text>As used in this subparagraph, the term
<term>shortfall funding method</term> means the shortfall funding method
described in section 1.412(c)(1)–2 of title 26 of the Code of Federal
Regulations (26 C.F.R. 1.412(c)(1)–2).</text>
</paragraph><paragraph id="ID14a9a2e47ff341d1a44753221dbca79f"><enum>(4)</enum><header>Section
<enum-in-header>302(c)(7)</enum-in-header> restrictions to
apply</header><text>In the case of a multiemployer plan that is on the
shortfall funding method pursuant to this subparagraph, the benefit
restrictions in section 302(c)(7) shall apply.</text>
</paragraph><paragraph id="ID4058bf607945492c92f364a580cc2d60"><enum>(5)</enum><header>Use of
shortfall method not to preclude other options</header><text>Nothing in this
subsection shall be construed to affect a multiemployer plan’s ability to adopt
the shortfall funding method with the Secretary of the Treasury’s permission
under otherwise applicable regulations or to affect a multiemployer plan’s
right to change funding methods, with or without the Secretary of the
Treasury’s consent, as provided in applicable rules and regulations under this
subsection.</text>
</paragraph></subsection><subsection id="ID2aa59cdb468946b888191c5a6dd7b38a"><enum>(c)</enum><header>Conforming
amendments</header>
<paragraph id="id16584336C80A4EDAA6494B0384E0A067"><enum>(1)</enum><text>Section 301 of
the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1081) is amended
by striking subsection (d).</text>
</paragraph><paragraph id="ID356a6486836242eea742d87afb6a9508"><enum>(2)</enum><text>The table of
contents in section 1 of such Act is amended further by inserting after the
item relating to section 302 the following new item:</text>
<toc>
<toc-entry level="section"><quote>Sec. 302A. Minimum funding
standards for multiemployer plans.</quote>.</toc-entry>
</toc>
</paragraph></subsection><subsection id="id2258FFBBF5E946B78BAC1901253C447E"><enum>(d)</enum><header>Effective
date</header>
<paragraph id="id7D0930108C6241AA817C07489A9A5612"><enum>(1)</enum><header>In
general</header><text>The amendments made by this section shall apply to plan
years beginning after 2006.</text>
</paragraph><paragraph id="ID088d3ee55305446694e8606004f451df"><enum>(2)</enum><header>Grandfather</header><text>An
extension under section 304 of the Employee Retirement Security Act of 1974
granted by the Secretary with respect to any application filed with the
Secretary on or before June 30, 2005 will be grandfathered and the interest
rate will be determined, for the duration of the extension and any modification
of the extension approved by the Secretary, based upon the provisions of
section 304(a) of the Employee Retirement Security Act of 1974 as in effect
prior to the date of enactment of this Act.</text>
</paragraph></subsection></section><section id="ID762ff8e3d0d24e2196777a4d49ca457e"><enum>102.</enum><header>Additional
funding rules for multiemployer plans in endangered or critical status</header>
<subsection id="IDb2c59bc59db24aadabfe83a83bbedae1"><enum>(a)</enum><header>In
general</header><text>Part 3 of subtitle B of title I of the Employee
Retirement Income Security Act of 1974 (as amended by section 101) is amended
by inserting after section 302A the following new section:</text>
<quoted-block display-inline="no-display-inline" id="id186D8443653043948861FF2B42BA70DC" style="traditional">
<section id="idA2FA395D65524319AA7A25B2F8641BE0"><enum>302B.</enum><header>Additional
funding rules for multiemployer plans in endangered status or critical
status</header><subsection commented="no" display-inline="yes-display-inline" id="id7CB686E588474F53AE0E1AB95732D7B5"><enum>(a)</enum><header>Annual certification
by plan actuary</header>
<paragraph id="idEE6C88B94EF54D37A81B5CF2CBCF4FD4"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">During the 90-day
period beginning on the first day of each plan year of a multiemployer plan,
the plan actuary shall certify to the Secretary of the Treasury whether or not
the plan is in endangered status for such plan year and whether or not the plan
is in critical status for such plan year.</text>
</paragraph><paragraph id="ID4f14157a58d24d09bf7c69eace7f7142"><enum>(2)</enum><header>Actuarial
projections of assets and liabilities</header>
<subparagraph id="IDbdd73923e9cb4938a623c048d3387025"><enum>(A)</enum><header>In
general</header><text>In making the determinations and projections under
paragraph (1) and subsections (b)(2) and (c)(2), the plan actuary shall make
projections required for the current and succeeding plan years, using
reasonable actuarial estimates, assumptions and methods, of the current value
of the assets of the plan, and the present value of all liabilities to
participants and beneficiaries under the plan for the current plan year as of
the beginning of such year. The present value of liabilities as of the
beginning of such year shall be determined based on the actuarial statement
required under section 103(d) with respect to the most recently filed annual
report or the actuarial valuation for the preceding plan year.</text>
</subparagraph><subparagraph id="IDb047592ef13a4452b3ed8b8d438a8036"><enum>(B)</enum><header>Determinations
of future contributions</header><text>Any such actuarial projection of plan
assets shall assume—</text>
<clause id="IDa6058890113e4442bdfe72c3be559ae2"><enum>(i)</enum><text>reasonably
anticipated employer contributions for the current and succeeding plan years,
assuming that the terms of the 1 or more collective bargaining agreements
pursuant to which the plan is maintained for the current plan year continue in
effect for succeeding plan years, or</text>
</clause><clause id="ID2ca04784e7a6411f8f9d0a4ae82ceb31"><enum>(ii)</enum><text>that employer
contributions for the most recent plan year will continue indefinitely, but
only if the plan actuary determines there have been no significant demographic
changes that would make such assumption unreasonable.</text>
</clause></subparagraph></paragraph><paragraph id="ID210bf10a1a63477288c906f8e4cba559"><enum>(3)</enum><header>Penalty for
failure to secure timely actuarial certification</header><text>Failure of the
actuary to certify the plan’s status under this subsection by the date
specified in paragraph (1), shall be treated for purposes of section 502(c)(2)
as a failure or refusal by the plan administrator to file the annual report
required to be filed with the Secretary under section 101(b)(4).</text>
</paragraph><paragraph id="ID57bcf7ca8ea642f88572c55f9deb4b40"><enum>(4)</enum><header>Notice</header><text>In
any case in which a multiemployer plan is certified to be in endangered or
critical status under paragraph (1), the plan sponsor shall, not later than 30
days after the date of the certification, provide notification of the
endangered or critical status to the participants and beneficiaries, the
bargaining parties, the Pension Benefit Guaranty Corporation, the Secretary of
the Treasury, and the Secretary of Labor.</text>
</paragraph></subsection><subsection id="ID4e9cb15b875e4cf2bad92859b990f519"><enum>(b)</enum><header>Funding rules
for multiemployer plans in endangered status</header>
<paragraph id="id83AE274D238A479998569F8AF16B1F46"><enum>(1)</enum><header>In
general</header><text>In any case in which a multiemployer plan is in
endangered status for a plan year and no funding improvement plan under this
subsection with respect to such multiemployer plan is in effect for the plan
year, the plan sponsor shall, in accordance with this subsection, adopt a
funding improvement plan not later than 240 days following the required date
for the actuarial certification of endangered status under subsection
(a)(1).</text>
</paragraph><paragraph id="ID0a8a0c74bc804eafbb0a757205eca150"><enum>(2)</enum><header>Endangered
status</header><text>A multiemployer plan is endangered for a plan year if, as
determined by the plan actuary under subsection (a), the plan is not in
critical status for the plan year and either—</text>
<subparagraph id="ID4c5ffb5b7d444056af33b6e6f6cdc82b"><enum>(A)</enum><text>the plan's funded
percentage for such plan year is less than 80 percent, or</text>
</subparagraph><subparagraph id="IDbc04e7d6c9d6452390c46877daa95b78"><enum>(B)</enum><text>the plan has an
accumulated funding deficiency for such plan year under section 302A or is
projected to have such an accumulated funding deficiency for any of the 6
succeeding plan years, taking into account any extension of amortization
periods under section 302A(d).</text>
</subparagraph></paragraph><paragraph id="ID9ac329d7b27a4966a3f4fca72c12910c"><enum>(3)</enum><header>Funding
improvement plan</header><text>A funding improvement plan shall consist of
actions, including actions to be proposed to the bargaining parties, formulated
to provide, under reasonable actuarial assumptions, for the attainment of (A)
or (B) below, as applicable:</text>
<subparagraph id="ID28ff4c6042f747e3995a8e4f060055dd"><enum>(A)</enum><header>Certain
endangered plans</header><text>In the case of an endangered plan to which
paragraph (2)(B) does not apply, an increase in the plan’s funded percentage by
the end of the funding improvement period.</text>
</subparagraph><subparagraph id="ID915541d391174a13b458028e7a747a9e"><enum>(B)</enum><header>All other
endangered plans</header><text>In the case of an endangered plan described in
paragraph (2)(B)—</text>
<clause id="ID2417b1a42b7d4ea181c3099e6f017d32"><enum>(i)</enum><text>an increase in
the plan's funded percentage such that—</text>
<subclause id="ID4ee076c95a3944ab819616c6ca283e52"><enum>(I)</enum><text>the difference
between 100 percent and the plan's funded percentage at the end of the funding
improvement period is not more than,</text>
</subclause><subclause id="ID1542b1d6f0e54c9b9389ca27ceeb5917"><enum>(II)</enum><text><fraction>2/3</fraction>
of the difference between 100 percent and the plan's funded percentage at the
beginning of the funding improvement period.</text>
</subclause></clause><clause id="ID8db79ab1d27e495e862fd1dd7393a3bd"><enum>(ii)</enum><text>no accumulated
funding deficiency for any plan year during the funding improvement period
(taking into account any extension of amortization periods under section
302A(d)).</text>
</clause></subparagraph><subparagraph id="IDb4ee12cfbcc6444cb9c92150937938c1"><enum>(C)</enum><header>Funding
improvement period</header><text>The funding improvement period for any funding
improvement plan adopted pursuant to this subsection is the 10-year period
beginning on the first day of the first plan year of the multiemployer plan
following the earlier of —</text>
<clause id="ID9fa73d182fa34ecaae64004a2c91643f"><enum>(i)</enum><text>the second
anniversary of the date of the adoption of the funding improvement plan,
or</text>
</clause><clause id="IDc2d21d1b195c486b97da54d90e3cfc7e"><enum>(ii)</enum><text>the expiration
of the collective bargaining agreements in effect on the due date for the
actuarial certification of endangered status under subsection (a)(1) and
covering, as of such due date, at least 75 percent of the active participants
in such multiemployer plan.</text>
</clause></subparagraph><subparagraph id="ID650c0552ed534e9f9bf2a86f9cd1420c"><enum>(D)</enum><header>Special rules
for certain seriously underfunded plans</header>
<clause id="idF95886B2491844A39F5FA45D60ABD52E"><enum>(i)</enum><text>In the case of an
endangered plan described in paragraph (2)(B) for which the funded percentage
for the plan year for which the initial certification is made under subsection
(a)(1) is 70 percent or less, paragraph (3) (B)(i)(II) shall be applied by
substituting <quote><fraction>4/5</fraction></quote> for
<quote><fraction>2/3</fraction></quote> and paragraph (3)(C) shall be applied
by substituting <quote>the 15-year period</quote> for <quote>the 10-year
period</quote>.</text>
</clause><clause id="IDbdc68cf1c88b4245bff05d976cbb48ab"><enum>(ii)</enum><text>In the case of
an endangered plan described in paragraph (2)(B) for which the funded
percentage for the plan year for which the initial certification is made under
subsection (a)(1) is more than 70 percent but less than 80 percent, and—</text>
<subclause id="IDb08e81e2277b4bbeaf29a7ea5e16ab16"><enum>(I)</enum><text>the plan actuary
certifies within 30 days after the certification under subsection (a)(1) that,
based on the terms of the plan and the collective bargaining agreements in
effect at the time of such certification, the plan is not projected to be able
to attain the increase described in subparagraph (B)(i) over the period
described in subparagraph (C), and</text>
</subclause><subclause id="IDbc4d2129868140588fd6328c7922813f"><enum>(II)</enum><text>the plan year is
prior to the day described in subparagraph (C)(ii),</text>
</subclause><continuation-text continuation-text-level="clause">subparagraph
(B)(i)(II) shall be applied by substituting
<quote><fraction>4/5</fraction></quote> for
<quote><fraction>2/3</fraction></quote> and subparagraph (C) shall be applied
by substituting <quote>the 15-year period</quote> for <quote>the 10-year
period</quote>.</continuation-text></clause><clause id="ID4a0c82595ed04340ab1ea93d6053227a"><enum>(iii)</enum><text>For any plan
year following the year described in clause (ii)(II), subparagraph (B)(i)(II)
and subparagraph (C) shall apply, except that for each plan year ending after
such date for which the plan actuary certifies (at the time of the annual
certification under subsection (a)(1) for such plan year) that, based on the
terms of the plan and collective bargaining agreements in effect at the time of
that annual certification, the plan is not projected to be able to attain the
increase described in subparagraph (B)(i) over the period described in
subparagraph (C), subparagraph (C) shall be applied by substituting <quote>the
15-year period</quote> for <quote>the 10-year period</quote>.</text>
</clause></subparagraph><subparagraph id="IDa3bdc8d21e59409cb545a90cb7b6891b"><enum>(E)</enum><header>Reporting</header><text>A
summary of any funding improvement plan or modification thereto adopted during
any plan year, together with annual updates regarding the funding ratio of the
plan, shall be included in the annual report for such plan year under section
104(a) and in the summary annual report for such plan year under section
104(b)(3).</text>
</subparagraph></paragraph><paragraph id="ID76d9fb9de1d1405eb4d32d668316e284"><enum>(4)</enum><header>Development of
funding improvement plan</header>
<subparagraph id="idAFCF6E8DE39E4898B1965E3562CA93FA"><enum>(A)</enum><header>Actions by plan
sponsor pending commencement of funding improvement period</header><text>In the
case of an endangered plan described in paragraph (2)(B), pending the
commencement of the funding improvement period, the plan sponsor shall take all
reasonable actions consistent with the terms of the plan and applicable law and
expected, based on reasonable assumptions, to achieve—</text>
<clause id="IDaea38191931e47e39fa27b3aceeb723d"><enum>(i)</enum><text>an increase in
the plan’s funded percentage, and</text>
</clause><clause id="ID5a70f59a562c4a5f9dbcffdc12fa6961"><enum>(ii)</enum><text>postponement of
an accumulated funding deficiency for at least 1 additional plan year.</text>
</clause><continuation-text continuation-text-level="subparagraph">Such
actions include applications for extensions of amortization periods under
section 302A(d), use of the shortfall funding method in making funding standard
account computations, amendments to the plan’s benefit structure, reductions in
future benefit accruals, and other reasonable actions consistent with the terms
of the plan and applicable law.</continuation-text></subparagraph><subparagraph id="IDe135453d93674ca0b988ecc487cb136f"><enum>(B)</enum><header>Information
provided to bargaining parties by plan sponsor</header>
<clause id="id4DB3322827F6437B8E7D7C96014D8E21"><enum>(i)</enum><header>In
general</header><text>Within 30 days after the adoption of a funding
improvement plan, the plan sponsor of an endangered plan described in paragraph
(2)(B) shall provide to the bargaining parties a schedule showing revised
benefit structures, contribution structures, or both, which, if adopted, may
reasonably be expected to enable the multiemployer plan to meet the applicable
benchmarks described in paragraph (3) in accordance with the funding
improvement plan. The schedule shall describe the reductions in future benefit
accruals and increases in contributions (if any) that the plan sponsor
determines are reasonably necessary to achieve the benchmarks, assuming there
are no increases in contributions under the plan other than the increases
necessary to achieve the benchmarks after future benefit accruals have been
reduced to the maximum extent permitted by law.</text>
</clause><clause id="ID2ac457ef5623496fa33d759e6855cdbd"><enum>(ii)</enum><header>Alternatives
at plan sponsor’s discretion</header><text>The plan sponsor may, as it deems
appropriate, prepare and provide the bargaining parties with additional
information relating to contribution rates or benefit reductions, alternative
schedules, or other information relevant to achieving the benchmarks under the
funding improvement plan.</text>
</clause></subparagraph></paragraph><paragraph id="ID1a619004162f43189c638db2b9a42747"><enum>(5)</enum><header>Maintenance of
contributions pending adoption of funding improvement
plan</header><text>Pending adoption of a funding improvement plan by the plan
sponsor, the plan sponsor may not accept a collective bargaining agreement or
participation agreement with respect to the multiemployer plan that provides
for—</text>
<subparagraph id="ID81c7cc22f03a4dea847f921e41f933a5"><enum>(A)</enum><text>a reduction in
the level of contributions for any participants,</text>
</subparagraph><subparagraph id="ID3885956958ab4aac91f9fc42d738a4b2"><enum>(B)</enum><text>a suspension of
contributions with respect to any period of service, or</text>
</subparagraph><subparagraph id="IDd7ed34e88b98488a899975c9817b65ac"><enum>(C)</enum><text>any new direct or
indirect exclusion of younger or newly hired employees from plan
participation.</text>
</subparagraph></paragraph><paragraph id="IDe62a4be8f5c542c583cdfc81ed92e044"><enum>(6)</enum><header>No benefit
increases pending adoption of funding improvement plan</header><text>Pending
adoption of a funding improvement plan with respect to an endangered
multiemployer plan—</text>
<subparagraph id="IDa7348ecf333d4fa3bda6d8fd4533c07b"><enum>(A)</enum><header>In
general</header><text>No amendment of the plan which increases the liabilities
of the plan by reason of any increase in benefits, any change in the accrual of
benefits, or any change in the rate at which benefits become nonforfeitable
under the plan may be adopted.</text>
</subparagraph><subparagraph id="ID9ac833af18bd42cc81bafe6665588997"><enum>(B)</enum><header>Exception</header><text>Subparagraph
(A) shall not apply to any plan amendment which is required as a condition of
qualification under part I of subchapter D of chapter 19 of subtitle A of the
Internal Revenue Code of 1986 or to comply with other applicable law.</text>
</subparagraph></paragraph><paragraph id="ID0a3eb4a9d3f842b88958121d11d4f6aa"><enum>(7)</enum><header>Penalty if no
funding improvement plan adopted</header><text>A failure of the plan sponsor to
adopt a funding improvement plan by the date specified in subsection (b)(1)
shall be treated for purposes of section 502(c)(2) as a failure or refusal by
the plan administrator to file the annual report required to be filed with the
Secretary under section 101(b)(4).</text>
</paragraph><paragraph id="ID648ab2c051a64c9b9f7b156fca854cad"><enum>(8)</enum><header>Compliance with
funding improvement plan</header><text>Upon adoption of a funding improvement
plan with respect to an endangered multiemployer plan—</text>
<subparagraph id="IDd82dd3a9c3b3487faa5ad94ce0d97d93"><enum>(A)</enum><text>a plan described
in paragraph (2)(B) may not be amended—</text>
<clause id="ID5a47dae1945d49f3be9b2ada771bdaa3"><enum>(i)</enum><text>so as to be
inconsistent with the funding improvement plan, or</text>
</clause><clause id="ID7224eac70cef423396f79213e0825704"><enum>(ii)</enum><text>so as to
increase benefits, including future benefit accruals, unless the plan actuary
certifies that, after taking into account the benefit increase, the plan is
still reasonably expected to meet the applicable benchmarks under paragraph (3)
in accordance with the schedule contemplated in the funding improvement plan,
and</text>
</clause></subparagraph><subparagraph id="IDe4f9228c57774138aec3e695e139b406"><enum>(B)</enum><text>a plan to which
paragraph (2)(B) does not apply may not be amended—</text>
<clause id="IDb72ae126a7a8471db289d87b8ed94548"><enum>(i)</enum><text>so as to be
inconsistent with the funding improvement plan, or</text>
</clause><clause id="ID05572521976a461db9961cbaed78fcd4"><enum>(ii)</enum><text>so as to
increase benefits, including future benefit accruals, unless the actuary
certifies that such increase is paid for out of contributions not required by
the funding improvement plan to meet the applicable benchmarks under paragraph
(3).</text>
</clause></subparagraph></paragraph><paragraph id="ID9fe6023b867d45e3b24be0b1f999bea8"><enum>(9)</enum><header>Updates to
funding improvement plan and schedules</header>
<subparagraph id="id8A2E78D284924F128EE8BB4BB3487DD2"><enum>(A)</enum><header>Funding
improvement plan</header><text>The funding improvement plan may be periodically
updated by the plan sponsor. A copy of any updated funding improvement plan
shall be filed with the plan’s annual report under section 104 of the Employee
Retirement Income Security Act of 1974.</text>
</subparagraph><subparagraph id="ID4683201e20984f0ba380607b9628e48f"><enum>(B)</enum><header>Schedules</header><text>The
plan sponsor may periodically update any schedule of contribution rates
provided under this subsection to reflect the experience of the plan.</text>
</subparagraph><subparagraph id="ID84423db88e36466ebe6eb9e05f4e07d8"><enum>(C)</enum><header>Duration of
schedule</header><text>A schedule of contribution rates provided by the plan
sponsor and relied upon by bargaining parties in negotiating a collective
bargaining agreement shall remain in effect for the duration of that collective
bargaining agreement.</text>
</subparagraph><subparagraph id="ID73c768b6d66c4ebea02474bae11a5e36"><enum>(D)</enum><header>Duration of
funding improvement plan</header><text>A funding improvement plan adopted under
this subsection shall remain in effect with respect to a multiemployer plan,
with modifications if applicable, until a plan year in which the multiemployer
plan is no longer in endangered status as certified by the actuary under
subsection (a).</text>
</subparagraph></paragraph></subsection><subsection id="ID32ffcba21d3e449a8d0a0f80a80f1d9e"><enum>(c)</enum><header>Funding rules
for multiemployer plans in critical status</header>
<paragraph id="ID792cd89082c546aaa79476db2bb88a07"><enum>(1)</enum><header>In
general</header><text>In any case in which a multiemployer plan is in critical
status for a plan year as described in paragraph (2) and no rehabilitation plan
under this subsection with respect to such multiemployer plan is in effect for
the plan year, the plan sponsor shall, in accordance with this subsection,
adopt a rehabilitation plan. The rehabilitation plan shall be adopted not later
than 240 days following the required date for the actuarial certification of
critical status under subsection (a)(1).</text>
</paragraph><paragraph id="IDf108c839b35a47c0a7644e4f7839abb6"><enum>(2)</enum><header>Critical
status</header>
<subparagraph id="ID2fee992f58234e0b9aee4981619a090d"><enum>(A)</enum><header>Entry</header><text>A
multiemployer plan is in critical status for a plan year if, as determined by
the plan actuary under subsection (a), the plan is described in paragraph (3)
.</text>
</subparagraph><subparagraph id="IDc6ae36a6742d447eaf594f7014d01687"><enum>(B)</enum><header>Emergence</header><text>A
plan that has been determined and certified as being in critical status shall
remain in such status until a plan year for which the plan actuary certifies,
in accordance with subsection (a)(2), that the plan is not projected to have an
accumulated funding deficiency for the plan year or any of the 9 succeeding
plan years, without regard to use of the shortfall method or any extension of
amortization periods under section 302A(d).</text>
</subparagraph></paragraph><paragraph id="IDd23f076cf1f14e65b3395e523c84b2ab"><enum>(3)</enum><header>Criticality
description</header><text>For purposes of paragraph (2)(B), a plan is described
in this paragraph if the plan is described in at least one of the following
subparagraphs:</text>
<subparagraph id="ID585e9a64791f44f183280c26f2a00553"><enum>(A)</enum><text>A plan is
described in this subparagraph if, as of the beginning of the current plan
year—</text>
<clause id="ID83b81a8076004f7cbe42478b2d8af588"><enum>(i)</enum><text>the funded
percentage of the plan is less than 65 percent, and</text>
</clause><clause id="ID9d2ae94dfe524452a2486a29f7b47788"><enum>(ii)</enum><text>the sum
of—</text>
<subclause id="IDfff18f746251464c9cfdf88ba7262b42"><enum>(I)</enum><text>the market value
of plan assets, plus</text>
</subclause><subclause id="ID0c464acd1f1c4fb6970e2c5109300f12"><enum>(II)</enum><text>the present
value of the reasonably anticipated employer contributions for the current plan
year and each of the 6 succeeding plan years, assuming that the terms of the 1
or more collective bargaining agreements pursuant to which the plan is
maintained for the current plan year continue in effect for succeeding plan
years, is less than the present value of all benefits projected to be payable
under the plan during the current plan year and each of the 6 succeeding plan
years (plus administrative expenses for such plan years).</text>
</subclause></clause></subparagraph><subparagraph id="ID88108721fd4e41dab74ef6a7073e6619"><enum>(B)</enum><text>A plan is
described in this subparagraph if, as of the beginning of the current plan
year, the sum of—</text>
<clause id="ID0dee0e54b3844652a64dde83927ef304"><enum>(i)</enum><text>the market value
of plan assets, plus</text>
</clause><clause id="IDab16dfec70b0439aa7e168612171f9d0"><enum>(ii)</enum><text>the present
value of the reasonably anticipated employer contributions for the current plan
year and each of the 4 succeeding plan years, assuming that the terms of the 1
or more collective bargaining agreements pursuant to which the plan is
maintained for the current plan year remain in effect for succeeding plan
years,</text>
</clause><continuation-text continuation-text-level="subparagraph">is less
than the present value of all benefits projected to be payable under the plan
during the current plan year and each of the 4 succeeding plan years (plus
administrative expenses for such plan years).</continuation-text></subparagraph><subparagraph id="ID7b83ed3351f84469afe46967347ba755"><enum>(C)</enum><text>A plan is
described in this subparagraph if—</text>
<clause id="IDac8dcf0283f04b72a857898514e7d393"><enum>(i)</enum><text>as of the
beginning of the current plan year, the funded percentage of the plan is less
than 65 percent, and</text>
</clause><clause id="IDfee6deed844e436eadb42872def75a7f"><enum>(ii)</enum><text>the plan has an
accumulated funding deficiency for the current plan year or is projected to
have an accumulated funding deficiency for any of the 4 succeeding plan years,
not taking into account any extension of amortization periods under section
302A(d).</text>
</clause></subparagraph><subparagraph id="IDa74cf9208f964dcb9f172f65c1f3e044"><enum>(D)</enum><text>A plan is
described in this subparagraph if—</text>
<clause id="ID2c6cf4ae315a4538a8cd81f781ff8146"><enum>(i)</enum><subclause commented="no" display-inline="yes-display-inline" id="id82E13240823D4E9289BECE88E952FE8C"><enum>(I)</enum><text>the plan’s normal cost
for the current plan year, plus interest (determined at the rate used for
determining costs under the plan) for the current plan year on the amount of
unfunded benefit liabilities under the plan as of the last date of the
preceding plan year, exceeds</text>
</subclause><subclause id="IDb251ddab8e994c3eb2c34d0aeddebb86" indent="up1"><enum>(II)</enum><text>the present value, as of the beginning
of the current plan year, of the reasonably anticipated employer contributions
for the current plan year,</text>
</subclause></clause><clause id="ID2873194322bd4147aebeb14e9b63108d"><enum>(ii)</enum><text>the present
value, as of the beginning of the current plan year, of nonforfeitable benefits
of inactive participants is greater than the present value, as of the beginning
of the current plan year, of nonforfeitable benefits of active participants,
and</text>
</clause><clause id="ID1e246bab907f4b7d900b169ba8a566b0"><enum>(iii)</enum><text>the plan is
projected to have an accumulated funding deficiency for the current plan year
or any of the 4 succeeding plan years, not taking into account any extension of
amortization periods under section 302A(d).</text>
</clause></subparagraph><subparagraph id="ID095220e374354ecb869cc25454f77300"><enum>(E)</enum><text>A plan is
described in this subparagraph if—</text>
<clause id="ID16d91db63a464effa1fe562b007ea756"><enum>(i)</enum><text>the funded
percentage of the plan is greater than 65 percent for the current plan year,
and</text>
</clause><clause id="IDf9b983db714a4852aa0c71142d2338f9"><enum>(ii)</enum><text>the plan is
projected to have an accumulated funding deficiency for the current plan year
or for any of the succeeding 3 plan years, not taking into account any
extension of amortization periods under section 302A(d).</text>
</clause></subparagraph></paragraph><paragraph id="IDa74fee83cc674bb7bfee955002a0f690"><enum>(4)</enum><header>Rehabilitation
plan</header>
<subparagraph id="id60A1B8A6188245DD86F95C8F13F90418"><enum>(A)</enum><header>In
general</header><text>A rehabilitation plan shall consist of—</text>
<clause id="ID294fabe851e446fc8e80e4d1e3f2edf9"><enum>(i)</enum><text>actions such as
reductions in plan expenditures (including plan mergers and consolidations),
future benefit accruals or other benefits, or increases in contributions if
agreed to by the bargaining parties, or any combination of such actions that
are reasonably expected to enable, under reasonable actuarial assumptions, the
plan to cease to be in critical status by the end of the rehabilitation period,
or</text>
</clause><clause id="ID36f878c602f94ee4a70af13361cd6fd2"><enum>(ii)</enum><text>reasonable
measures to emerge from critical status at a later point or to forestall
possible insolvency (within the meaning of section 4245), if the plan sponsor
determines that, based on reasonable actuarial assumptions and upon exhaustion
of all reasonable measures, the plan can not reasonably be expected to cease to
be in critical status by the end of the rehabilitation period. In such a case,
the rehabilitation plan shall set forth the alternatives considered, explain
why the plan is not reasonably expected to emerge from critical status within
the stated time period, and specify when, if ever, the plan is expected to
emerge from critical status in accordance with the rehabilitation plan.</text>
</clause></subparagraph><subparagraph id="ID600992e90b1d4acf8d57290a2bc68a14"><enum>(B)</enum><header>Rehabilitation
period</header><text>The rehabilitation period for a plan in critical status is
the 10-year period beginning on the first day of the first plan year of the
multiemployer plan following the earlier of—</text>
<clause id="ID5f326739780746e687f020bb4b4ac82b"><enum>(i)</enum><text>the second
anniversary of the date of the adoption of the rehabilitation plan, or</text>
</clause><clause id="IDb8f97973308e4a82829320f7a63a0e66"><enum>(ii)</enum><text>the expiration
of the collective bargaining agreements in effect on the date of the due date
for the actuarial certification of critical status under subsection (a)(1) and
covering, as of such date, at least 75 percent of the active participants in
such multiemployer plan.</text>
</clause></subparagraph><subparagraph id="IDf11c7261b23240b08eb5219dca23dfcd"><enum>(C)</enum><header>Reporting</header><text>A
summary of any rehabilitation plan or modification thereto adopted during any
plan year, together with annual updates regarding the funding ratio of the
plan, shall be included in the annual report for such plan year under section
104(a) and in the summary annual report under section 104(b)(3) for that plan
year.</text>
</subparagraph></paragraph><paragraph id="ID5d0ce38b43e84e83a49706fd3b8ae766"><enum>(5)</enum><header>Schedules of
contributions, benefits affected</header>
<subparagraph id="ID4888f384982f4556a384123561222e8a"><enum>(A)</enum><header>Presentation by
plan sponsor</header>
<clause id="IDac161f9eccf94cd0a71146c25c97a45a"><enum>(i)</enum><header>In
general</header><text>Within 30 days after the adoption of a rehabilitation
plan, the plan sponsor of a plan in critical status shall provide to the
bargaining parties a schedule showing revised benefit structures, contribution
structures, or both, which, if adopted, may reasonably be expected to enable
the multiemployer plan to emerge from critical status in accordance with its
rehabilitation plan. The schedule shall describe the reductions in future
benefit accruals, and increases in contributions (if any) that the plan sponsor
determines are reasonably necessary to emerge from critical status, assuming
there are no increases in contributions under the plan other than the increases
necessary to emerge from critical status after future benefit accruals have
been reduced to the maximum extent permitted by law.</text>
</clause><clause id="IDa5130a4ebcb74731b6178b17f0250b08"><enum>(ii)</enum><header>Alternatives
at plan sponsor’s discretion</header><text>The plan sponsor may, as it deems
appropriate, prepare and provide the bargaining parties with additional
information relating to contribution rates or benefit reductions, alternative
schedules or other information relevant to emerging from critical status under
the rehabilitation plan.</text>
</clause><clause id="ID00e321a1088d442a872f5ae8f60af13e"><enum>(iii)</enum><header>Limitation on
reduction in rates of future accruals</header><text>The schedule described in
subparagraph (A)(i) of this paragraph shall not reduce the rate of future
accruals below—</text>
<subclause id="ID5771906bd26b4723ade9a37f923408aa"><enum>(I)</enum><text>a monthly benefit
equal to 1 percent of the contributions required to be made with respect to a
participant or the equivalent standard accrual rate for a participant or group
of participants under the collective bargaining agreements in effect as of the
first day of the plan year in which the plan enters critical status with such
monthly benefit payable as a single life annuity commencing at the
participant’s normal retirement date, or</text>
</subclause><subclause id="ID2a426d9b90e3488daa345f4e015c6a86"><enum>(II)</enum><text>if lower, the
accrual rate under the plan on such date.</text>
</subclause><continuation-text continuation-text-level="clause">The
equivalent standard accrual rate shall be determined by the plan sponsor based
on the standard or average contribution base units that they determine to be
representative for active participants and such other factors as they determine
to be relevant.</continuation-text></clause></subparagraph><subparagraph id="IDf2e8156f82c947a19641036bd326faa6"><enum>(B)</enum><header>Updates to
rehabilitation plan and schedules</header>
<clause id="ID17cbf5c53fe243f89519a942a4d2130c"><enum>(i)</enum><header>Rehabilitation
plan</header><text>The rehabilitation plan shall be annually updated by the
plan sponsor and filed with the plan’s annual report under section 104 of the
Employee Retirement Income Security Act of 1974.</text>
</clause><clause id="ID44467a10d7a54f9484f0c70713c47874"><enum>(ii)</enum><header>Schedules</header><text>The
plan sponsor may periodically update any schedule of contribution rates
provided under this subsection to reflect the experience of the plan, except
that the schedule or schedules under subparagraph (A) shall be updated at least
once every 3 years.</text>
</clause><clause id="IDaf5837c508af4c719bccd5d20baff85b"><enum>(iii)</enum><header>Duration of
schedule</header><text>A schedule of contribution rates provided by the plan
sponsor and relied upon by bargaining parties in negotiating a collective
bargaining agreement shall remain in effect for the duration of that collective
bargaining agreement.</text>
</clause></subparagraph><subparagraph id="IDb8dddb21e090485a87b3479e8d8fd196"><enum>(C)</enum><header>Default
schedule</header>
<clause id="IDc9586248f7fa429bbace08ea84f7cb77"><enum>(i)</enum><header>In
general</header><text>If the collective bargaining agreement providing for
contributions under a multiemployer plan that was in effect at the time the
plan entered critical status has expired and, after receiving a schedule from
the plan sponsor under subparagraph (A), the bargaining parties have not
adopted bargaining-agreement terms consistent such a schedule, the schedule
described in subparagraph (A)(i) shall go into effect with respect to those
bargaining parties.</text>
</clause><clause id="ID9de72bfd0c4a4ece9c05d9d8c901fda0"><enum>(ii)</enum><header>Deemed
withdrawal</header><text>Upon the failure of an employer that has an obligation
to contribute under the plan to make contributions in compliance with a
schedule that goes into effect under this subparagraph, that failure may, at
the discretion of the plan sponsor, be treated as a withdrawal by the employer
from the plan under section 4203 or a partial withdrawal by the employer under
section 4205.</text>
</clause></subparagraph></paragraph><paragraph id="ID9829042469a84d428b30d68ebb7e0d5b"><enum>(6)</enum><header>Temporary
restrictions on contribution rates</header><text>Pending adoption of a
rehabilitation plan by the plan sponsor, the plan sponsor may not accept a
collective bargaining agreement or participation agreement with respect to the
multiemployer plan that provides for—</text>
<subparagraph id="IDbdcd2ada8e534503a12e28dd28b611ce"><enum>(A)</enum><text>a reduction in
the level of contributions for any participants,</text>
</subparagraph><subparagraph id="ID7c946afae1824a608b11921199f15f91"><enum>(B)</enum><text>a suspension of
contributions with respect to any period of service, or</text>
</subparagraph><subparagraph id="ID7bc6c5d2b90848f2977d6a2e3a6fbf7b"><enum>(C)</enum><text>any new direct or
indirect exclusion of younger or newly hired employees from plan
participation.</text>
</subparagraph></paragraph><paragraph id="ID62a883fa952c4ab08e3136df240eba13"><enum>(7)</enum><header>Restrictions on
benefit increases</header>
<subparagraph id="ID951035c4658a417f83ba6f232044e044"><enum>(A)</enum><header>Pending
adoption of rehabilitation plan</header><text>Pending adoption of a
rehabilitation plan with respect to a multiemployer plan in critical
status—</text>
<clause id="IDedf0b1460c27470bbf53c09149a28425"><enum>(i)</enum><header>In
general</header><text>No amendment of the plan which increases the liabilities
of the plan by reason of any increase in benefits, any change in the accrual of
benefits, or any change in the rate at which benefits become nonforfeitable
under the plan may be adopted.</text>
</clause><clause id="IDd6dffa57758c49a89599189cdcfd805c"><enum>(ii)</enum><header>Exception</header><text>Clause
(i) shall not apply to any plan amendment which is required as a condition of
qualification under part I of subchapter D of chapter 19 of subtitle A of the
Internal Revenue Code of 1986 or to comply with other applicable law.</text>
</clause></subparagraph><subparagraph id="ID2fdba324377d40acbd69aabaf01859a2"><enum>(B)</enum><header>After adoption
of a rehabilitation plan</header><text>After adoption of a rehabilitation plan
with respect to a multiemployer plan in critical status, the multiemployer plan
may not be amended—</text>
<clause id="IDf5a441a2e4f147aa832462ecc524e4a1"><enum>(i)</enum><text>so as to be
inconsistent with the rehabilitation plan, or</text>
</clause><clause id="IDe90698f02d64402fa7cdfc97574d8697"><enum>(ii)</enum><text>so as to
increase benefits, including future benefit accruals, unless the plan actuary
certifies that such increase is paid for out of additional contributions not
contemplated by the rehabilitation plan, and, after taking into account the
benefit increase, the multiemployer plan still is reasonably expected to emerge
from critical status by the end of the rehabilitation period on the schedule
contemplated in the rehabilitation plan.</text>
</clause></subparagraph></paragraph></subsection><subsection id="ID53a04dc1e5d64c72a93e5032c5e5acbc"><enum>(d)</enum><header>Expedited
resolution of plan sponsor decisions</header><text>If, within 60 days of the
due date for adoption of a funding improvement plan under subsection (b) or a
rehabilitation plan under subsection (c), the plan sponsor of a plan in
endangered status or a plan in critical status has not agreed on a funding
improvement plan or rehabilitation plan, then any member of the board or group
that constitutes the plan sponsor may require that the plan sponsor enter into
an expedited dispute resolution procedure for the development and adoption of a
funding improvement plan or rehabilitation plan.</text>
</subsection><subsection id="ID6944c3fe32e64826a1929d6c655d6467"><enum>(e)</enum><header>Nonparticipation</header>
<paragraph id="ID707b7c242018483084ca61de2f1a0563"><enum>(1)</enum><header>Both bargained
and non-bargained employee-participants</header><text>In the case of an
employer that contributes to a multiemployer plan with regard both to employees
who are covered by 1 or more collective bargaining agreements and to employees
who are not covered by such an agreement, if the plan is in endangered status
or in critical status, benefits of and contributions for the non-bargained
employees shall be determined as if those non-bargained employees were covered
under the first to expire of the employer’s collective bargaining agreements in
effect when the plan went into endangered or critical status.</text>
</paragraph><paragraph id="ID7f6116322c874ac093151f0773943f01"><enum>(2)</enum><header>Non-bargained
employees only</header><text>In the case of an employer that contributes to a
multiemployer plan only with respect to employees who are not covered by a
collective bargaining agreement, subsections (b) and (c) shall be applied as if
the employer were the bargaining parties, and its participation agreement with
the plan was a collective bargaining agreement with a term ending on the first
day of the plan year beginning after the employer is provided the schedule or
schedules described in subsections (b) and (c).</text>
</paragraph><paragraph id="IDa2fe1115b0584e5a889a869e26760eb6"><enum>(3)</enum><header>Employees
covered by a collective bargaining agreement</header><text>Whether an employee
is considered to be covered by a collective bargaining agreement for purposes
of this section shall be determined without regard to the special rule in
Treas. Reg. section 1.410(b)-6(d)(ii)(D).</text>
</paragraph></subsection><subsection id="IDceee51b75158411f95f499b5929d01f6"><enum>(f)</enum><header>Definitions;
actuarial method</header><text>For purposes of this section—</text>
<paragraph id="ID8d8df7089d5140c59acfeaf9c7eed77a"><enum>(1)</enum><header>Bargaining
party</header><text>The term <term>bargaining party</term> means, in connection
with a multiemployer plan—</text>
<subparagraph id="ID356159350104492aa38be7d9028e2c91"><enum>(A)</enum><text>an employer that
has an obligation to contribute under the plan, and</text>
</subparagraph><subparagraph id="ID10722b85c6b04018b13ea0638ce97d79"><enum>(B)</enum><text>an employee
organization which, for purposes of collective bargaining, represents plan
participants employed by such an employer.</text>
</subparagraph></paragraph><paragraph id="ID5de85663c3634d238098979f9d0dffb1"><enum>(2)</enum><header>Funded
percentage</header><text>The term <term>funded percentage</term> means the
percentage expressed as a ratio—</text>
<subparagraph id="IDf24272662bc84270a085b9cd8ddc0f53"><enum>(A)</enum><text>the numerator of
which is the value of the plan’s assets, as determined under section
302A(c)(2), and</text>
</subparagraph><subparagraph id="ID121c6e58ca864a35a95e25bb0ae2a10a"><enum>(B)</enum><text>the denominator
of which is the accrued liability of the plan, determined using actuarial
assumptions described in section 302A(c)(3).</text>
</subparagraph></paragraph><paragraph id="ID51f333cde2134cb9afa1b294ed9041d9"><enum>(3)</enum><header>Accumulated
funding deficiency</header><text>The term <term>accumulated funding
deficiency</term> has the meaning provided such term in section 302A(a).</text>
</paragraph><paragraph id="IDd0dd98d10e544632bf7a3e34c3ad95e7"><enum>(4)</enum><header>Active
participant</header><text>The term <term>active participant</term> means, in
connection with a multiemployer plan, a participant who is in covered service
under the plan.</text>
</paragraph><paragraph id="IDf70b5d6524f44e938eeb6cf236816151"><enum>(5)</enum><header>Inactive
participant</header><text>The term <term>inactive participant</term> means, in
connection with a multiemployer plan, a participant, or the beneficiary or
alternate payee of a participant, who—</text>
<subparagraph id="IDab1ad9d2f04f4c71946c54cdc14714ba"><enum>(A)</enum><text>is not in covered
service under the plan, and</text>
</subparagraph><subparagraph id="ID7a33a893a1b649aba11213f1f2e43f5d"><enum>(B)</enum><text>is in pay status
under the plan or has a nonforfeitable right to benefits under the plan.</text>
</subparagraph></paragraph><paragraph id="ID7f5c0a01436f43e5bc108c3c5676ee8a"><enum>(6)</enum><header>Pay
status</header><text>A person is in <quote>pay status</quote> under a
multiemployer plan if—</text>
<subparagraph id="ID222aab83b2634ae2a82e4a78383f4a75"><enum>(A)</enum><text>at any time
during the current plan year, such person is a participant or beneficiary under
the plan and is paid an early, late, normal, or disability retirement benefit
under the plan (or a death benefit under the plan related to a retirement
benefit), or</text>
</subparagraph><subparagraph id="ID7317b74531884c06afa6e1fa23528063"><enum>(B)</enum><text>to the extent
provided in regulations of the Secretary of the Treasury, such person is
entitled to such a benefit under the plan.</text>
</subparagraph></paragraph><paragraph id="IDbfe37784cba040469a5cff660dbccea8"><enum>(7)</enum><header>Obligation to
contribute</header><text>The term <term>obligation to contribute</term> has the
meaning provided such term under section 4212(a).</text>
</paragraph><paragraph id="IDc01db37cabc84c69b68cfe9333f6a795"><enum>(8)</enum><header>Actuarial
method</header><text>Notwithstanding any other provision of this section, the
actuary’s determinations with respect to a plan’s normal cost, actuarial
accrued liability and improvements in a plan’s funded percentage under this
section shall be based upon the unit credit funding method (whether or not that
method is used for the plan’s actuarial
valuation).</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDa41095ca2c5643319b4cc7a44bedafda"><enum>(b)</enum><header>Cause of action
to compel adoption of funding improvement or rehabilitation
plan</header><text>Section 502(a) of the Employee Retirement Income Security
Act of 1974 shall be amended by (1) striking <quote>or</quote> at the end of
paragraph (8) thereof, (2) striking <quote>amounts.</quote> at the end of
paragraph (9) and substituting therefor <quote>amounts; or</quote> and adding,
after paragraph (9), the following:</text>
<quoted-block display-inline="no-display-inline" id="id5EA79A3ADBCE4B34B8E353C9CF2ADF95" style="OLC">
<paragraph id="IDcf2ac944e6b2464b9636a83f7b4e3cd3"><enum></enum><text>(9) In the
case of a multiemployer plan that has been certified by the actuary to be in
endangered or critical status under section 302B, if the plan sponsor has not
adopted a funding improvement or rehabilitation plan under subsection (b) or
(c) of such section by the deadline established in that section for the
adoption of such a funding improvement plan or rehabilitation plan, by an
employer that has an obligation to contribute with respect to the multiemployer
plan or an employee organization that represents active participants in the
multiemployer plan, for an order compelling the plan sponsor to adopt a funding
improvement or rehabilitation
plan.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDbb3d6bc6a88348f09369ce0182c5dc47"><enum>(c)</enum><header>4971 Excise tax
inapplicable</header><text>Section 4971 of the Internal Revenue Code of 1986 is
amended by redesignating subsection (g) as subsection (h), and inserting after
subsection (f) the following:</text>
<quoted-block display-inline="no-display-inline" id="id22F070AEF95C45F5B3FFABD0E29721F1" style="OLC">
<subsection id="ID1f2b0a99f4744042932a24e7d67ba586"><enum>(g)</enum><header>Multiemployer
plans in critical status</header><text>Any tax under this section shall not
apply with respect to a multiemployer plan in critical status pursuant to 302B
of the Employee Retirement Income Security Act of 1974, provided that the plan
adopts a rehabilitation plan in accordance with such section and complies with
such rehabilitation plan (as amended from time to
time).</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID42edaae17072481e8b0bf9da22f5aeff"><enum>(d)</enum><header>No additional
contributions required</header>
<paragraph id="IDfae1e4d169d342bc815a52a97c40f189"><enum>(1)</enum><text>Section
302(c)(11) of Employee Retirement Income Security Act of 1974 is amended by
adding at the end thereof the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="idC7A16DE7FDD54AB68A5F1FB00FA2E0F4" style="OLC">
<subparagraph id="ID44acb62a0b9f44e6ba22e7a1a87c5518"><enum>(C)</enum><header>Multiemployer
plans in critical status</header><text>Subparagraph (A) shall not apply in the
case of a multiemployer plan for any plan year in which the plan is in critical
status pursuant to section 302B, provided that the plan adopts a rehabilitation
plan in accordance with section 302B(c) and complies with such rehabilitation
plan (as amended from time to
time).</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID637273ed52ab4997ab1b6f7f74187b97"><enum>(2)</enum><text>Section
412(c)(11) of the Internal Revenue Code of 1986 is amended by adding at the end
the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="id6E226D5D2B3943ACB7C53C26409BFD9B" style="OLC">
<subparagraph id="IDcf3e407e55e34b26926b44c0ef4a2b80"><enum>(C)</enum><header>Multiemployer
plans in critical status</header><text>Subparagraph (A) shall not apply in the
case of a multiemployer plan for any plan year in which the plan is in critical
status pursuant to 302B of the Employee Retirement Income Security Act of 1974,
provided that the plan adopts a rehabilitation plan in accordance with such
section and complies with such rehabilitation plan (as amended from time to
time).</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="ID3abd857c2c764266bad9a6225cef554c"><enum>(e)</enum><header>Conforming
amendment</header><text>The table of contents in section 1 of such Act (as
amended by section 101 of this Act) is amended further by inserting after the
item relating to section 302A the following new item:</text>
<toc>
<toc-entry level="section"><quote>Sec. 302B. Additional funding rules
for multiemployer plans in endangered status or critical
status.</quote>.</toc-entry>
</toc>
</subsection><subsection id="ID148dfbe9fcc845959b2f4cd682cecbb1"><enum>(f)</enum><header>Effective
date</header><text>The amendment made by this section shall apply with respect
to plan years beginning after 2006.</text>
</subsection></section><section id="ID38eb6ec96e2245b380e1d3794b5cec57"><enum>103.</enum><header>Measure to
forestall insolvency of multiemployer plans</header><text display-inline="no-display-inline">Section 4245(d)(1) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1426(d)(1)) is
amended—</text>
<paragraph id="ID35ef5b7389414deab2b205cfda436313"><enum>(1)</enum><text>by striking
<quote>3 plan years</quote> the second place it appears and inserting <quote>5
plan years</quote>, and</text>
</paragraph><paragraph id="IDce3d8986e9e349578e489af806c30227"><enum>(2)</enum><text>by adding at the
end the following new sentence: <quote>If the plan sponsor makes such a
determination that the plan will be insolvent in any of the next 5 plan years,
the plan sponsor shall make the comparison under this paragraph at least
annually until the plan sponsor makes a determination that the plan will not be
insolvent in any of the next 5 plan years.</quote></text>
</paragraph></section><section id="IDf9dc8b1724da4e7388baaeac1e148ba8"><enum>104.</enum><header>Withdrawal
liability reforms</header>
<subsection id="ID2df35f67ebe549bfa781b1a8e8758173"><enum>(a)</enum><header>Repeal of
limitation on withdrawal liability in the event of certain sales of employer
assets to unrelated parties</header>
<paragraph id="ID16e72d49307648d1a8049058ae4dc3db"><enum>(1)</enum><header>In
general</header><text>Section 4225 of the Employee Retirement Income Security
Act of 1974 (29 U.S.C. 1405) is repealed.</text>
</paragraph><paragraph id="IDdf832abf4dd548fa9dbb9740a8014e26"><enum>(2)</enum><header>Conforming
amendment</header><text>The table of contents in section 1 of such Act is
amended by striking the item relating to section 4225.</text>
</paragraph><paragraph id="IDc90c909d028f4d0c8d1b4e586450eeb1"><enum>(3)</enum><header>Effective
date</header><text>The amendments made by this section shall apply with respect
to sales occurring on or after January 1, 2007.</text>
</paragraph></subsection><subsection id="ID81e6e92580c647e5b973ac59caf72e60"><enum>(b)</enum><header>Repeal of
limitation to 20 annual payments</header>
<paragraph id="ID23be252519964a83a34de244dfc04376"><enum>(1)</enum><header>In
general</header><text>Section 4219 (c) (1) of such Act (29 U.S.C. 1399(c)(1))
is amended by striking subparagraph (B).</text>
</paragraph><paragraph id="ID0287f23b910b4c00b3495cf10c05ab5c"><enum>(2)</enum><header>Effective
date</header><text>The amendment made by this section shall apply with respect
to withdrawals occurring on or after January 1, 2007.</text>
</paragraph></subsection><subsection id="ID3690b22c78324558943b5b062c1b7acf"><enum>(c)</enum><header>Withdrawal
liability continues If work contracted out</header>
<paragraph id="ID17a6ad0de93a45a7b41f656ea5c3f163"><enum>(1)</enum><header>In
general</header><text>Clause (i) of section 4205(b)(2)(A) of such Act (29
U.S.C. 1385(b (2)(A)) is amended by inserting <quote>or to another party or
parties</quote> after <quote>to another location</quote>.</text>
</paragraph><paragraph id="ID7c702efb553f4245a87c547b78720bcc"><enum>(2)</enum><header>Effective
date</header><text>The amendment made by this subsection shall apply with
respect to work transferred on or after the date of the enactment of this
Act.</text>
</paragraph></subsection><subsection id="ID44b0179eb1e541228b96ff1ce70ec982"><enum>(d)</enum><header>Repeal of
special rule for long and short haul trucking industry</header>
<paragraph id="IDd8f669db0f854007891d7e9d2ba70086"><enum>(1)</enum><header>In
general</header><text>Subsection (d) of section 4203 of such Act (29 U.S.C.
1383(4)) is repealed.</text>
</paragraph><paragraph id="IDada3b44b947d4fcea8a137c169a21cfc"><enum>(2)</enum><header>Effective
date</header><text>The repeal under this subsection shall apply with respect to
cessations to have obligations to contribute to multiemployer plans and
cessations of covered operations under such plans occurring on or after January
1, 2007.</text>
</paragraph></subsection><subsection id="IDb280d6f0519349119d5fbd100915955d"><enum>(e)</enum><header>Application of
rules to plans primarily covering employees in the building and
construction</header>
<paragraph id="IDf2656593298a40f8baebde75fc3ed0c8"><enum>(1)</enum><header>In
general</header><text>Section 4210(b) of such Act (29 U.S.C. 1390(b)) is
amended—</text>
<subparagraph id="ID4191a7721ca749aca486cff58b8ae603"><enum>(A)</enum><text>by striking
paragraph (1), and</text>
</subparagraph><subparagraph id="ID9d1b21af08fa4f16881d8ce308435c2d"><enum>(B)</enum><text>by redesignating
paragraphs (2) through (4) as paragraphs (1) through (3), respectively.</text>
</subparagraph></paragraph><paragraph id="IDd10fc309edf24ca2b41929c612e82586"><enum>(2)</enum><header>Restart
rule</header><text>Section 4211(c) of such Act is amended—</text>
<subparagraph id="ID3da141627ace40e5bb5b459a31464467"><enum>(A)</enum><text>by striking
<quote>, other than a plan which primarily covers employees in the building and
construction industry,</quote>, and</text>
</subparagraph><subparagraph id="ID22a514afeca742e48e6f24ee108b1b83"><enum>(B)</enum><text>by striking the
second sentence thereof.</text>
</subparagraph></paragraph><paragraph id="IDfa2a94dd92544df9a71738ba56cc8f92"><enum>(3)</enum><header>Effective
date</header><text>The amendments made by this subsection shall apply with
respect to plan withdrawals occurring on or after January 1, 2007.</text>
</paragraph></subsection></section><section id="ID1b9dbcdc091b4d849d713da76a7b19a1"><enum>105.</enum><header>Special rule
for certain benefit restorations</header><text display-inline="no-display-inline">In the case of a multiemployer plan for
which the plan document, the trust agreement, or formal written communication
from the plan sponsor to the participants provided before June 30, 2005, for
the restoration of benefits reduced due to benefit reductions adopted on or
after January 1, 2002, and before June 30, 2005, any benefit restorations
pursuant to such document, agreement, or communication shall not be subject to
the amendments made by this Title to sections 302A(b)(2)(B)(iii), 302B(b)(6),
302B(b)(8)(A)(ii), 302B(b)(8)(B)(ii), 302B(c)(7)(A), and 302B(c)(7)(B)(ii) of
the Employee Income Security Act of 1974.</text>
</section><enum>II</enum><header>Disclosure</header>
<section id="id412754916ADC4729B28FD2EFF38F0DEC"><enum>201.</enum><header>Multiemployer
defined benefit plan funding notices</header>
<subsection id="ID29877414aaa2462cba1497757f9266a4"><enum>(a)</enum><header>Inclusion of
statement of the ratio of inactive participants to active
participants</header><text>Section 101(f)(2)(B) of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1021(f)(2)(B)) is amended—</text>
<paragraph id="ID43b92fcebf5344ea96242311b4f9706c"><enum>(1)</enum><text>in clause (iii),
by striking <quote>and</quote> at the end;</text>
</paragraph><paragraph id="IDf4031b58b27c40e4b7849a0e41b2b9f8"><enum>(2)</enum><text>in clause (iv),
by striking <quote>apply.</quote> and inserting <quote>apply; and</quote>;
and</text>
</paragraph><paragraph id="IDd7b956b7c5d2428199e9bb79613f43e9"><enum>(3)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="idA8AFF9BF90494477B66F62D01C3B6783" style="OLC">
<clause id="IDdfcf9075c6d44fbf8d6569eb1a75e4bf"><enum>(v)</enum><text>a
statement of the ratio, as of the end of the plan year to which the notice
relates, of—</text>
<subclause id="IDe4f3b120c7a14daabb59ce07fd927e92"><enum>(I)</enum><text>the number of
participants who were not in covered service under the plan during the plan
year; to</text>
</subclause><subclause id="ID4eada57c31214b8db4ea70949822f1f3"><enum>(II)</enum><text>the number of
participants who were in covered service under the plan during the plan
year.</text>
</subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="ID5f559735c2b244d0948d2102012550df"><enum>(b)</enum><header>Comparison of
value of plan assets to annual liability for benefits</header><text>Section
101(f)(2)(B) of such Act (29 U.S.C. 7 1021(f)(2)(B)) (as amended by the
preceding provisions of this section) is amended—</text>
<paragraph id="ID1d2061ff6db54edab5072df718584415"><enum>(1)</enum><text>by striking
clause (ii) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id03AAE79D0D0046D08E97DB64AB7EF945" style="OLC">
<clause id="ID3debd074fdc74f7b8e68927b1d6a73f3"><enum>(ii)</enum><text>a statement of a
reasonable estimate of—</text>
<subclause id="ID490041e929ac490f93947c88fa62b7ac"><enum>(I)</enum><text>the value of the
plan’s assets as of the last day of the plan year to which the notice
relates;</text>
</subclause><subclause id="ID912fef901b0849e782687ef6bb8424ea"><enum>(II)</enum><text>the liability of
the plan for benefit payments and administrative expenses for the plan year to
which the notice relates; and</text>
</subclause><subclause id="ID6d9f85626c79416a94527125b0679529"><enum>(III)</enum><text>the ratio of
the amount determined under subclause (I) to the amount determined under
subclause (II);</text>
</subclause></clause><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID7d3ca91fcc964fc082000868818a9be4"><enum>(2)</enum><text>by adding at the
end of clause (v) the following: <quote>A plan’s estimated assets and estimated
liability for benefit payments and expenses for a plan year under clause (ii)
shall be determined based on the most reliable information reasonably available
to the plan sponsor by the date that is 30 days before the due date for the
notice.</quote>.</text>
</paragraph></subsection><subsection id="IDb53abb3143334773b927787571c3cc8a"><enum>(c)</enum><header>Statement of
plan’s funding policy and method of asset allocation</header><text>Section
101(f)(2)(B) of such Act, as amended by this Act, is amended—</text>
<paragraph id="ID7822f49e2e544809a082ba10463202fb"><enum>(1)</enum><text>in clause (iv),
by striking <quote>and</quote> at the end;</text>
</paragraph><paragraph id="ID050cc95762cf43baa2703c777cdb7ad5"><enum>(2)</enum><text>in clause (v), by
striking the period and inserting <quote>; and</quote>; and</text>
</paragraph><paragraph id="IDb050df7a225a404db02b0d6d737e41eb"><enum>(3)</enum><text>by inserting
after clause (v) the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="id4F7B5DC5914943BFBDBEC1CD98D14CA3" style="OLC">
<clause id="ID17d76b723c5d49fb8119a36114ecbd4e"><enum>(vi)</enum><text>a statement
setting forth the funding policy of the plan and the asset allocation of
investments under the plan (expressed as percentages of total assets) as of the
end of the plan year to which the notice
relates.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="IDfb9c45993d54427394eabc4e15e77b8c"><enum>(d)</enum><header>Notice of
funding improvement plan or rehabilitation plan</header><text>Section
101(f)(2)(B) of such Act, as amended by this Act, is amended—</text>
<paragraph id="ID2fd3ca8da2fa470686ce7ceac06054e0"><enum>(1)</enum><text>in clause (v), by
striking <quote>and</quote> at the end;</text>
</paragraph><paragraph id="IDcbee0ffd3580433896ef5ddefa4ecead"><enum>(2)</enum><text>in clause (vi),
by striking the period and inserting <quote>; and</quote>; and</text>
</paragraph><paragraph id="IDf3385db5d91e4680a2899097f54abeaa"><enum>(3)</enum><text>by inserting
after clause (vi) the following:</text>
<quoted-block display-inline="no-display-inline" id="id168982B04A1A485EB1DBBAC8C1DAE312" style="OLC">
<clause id="ID1d87e7b1e15b4ad59da8df07e66e4715"><enum>(vii)</enum><text>a summary of
any funding improvement plan, rehabilitation plan, or modification thereof
adopted under section 302B during the plan year to which the notice
relates.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="IDe45775340ce649f2a93bcc40ef8657e2"><enum>(e)</enum><header>Notice due 90
days after end of plan year</header>
<paragraph id="ID1ae13c8570c14181be80b69927caf578"><enum>(1)</enum><header>In
general</header><text>Section 101(f)(3) of such Act (29 U.S.C. 1021(f)(3)) is
amended by striking <quote>two months after the deadline (including extensions)
for filing the annual report for the plan year</quote> and inserting <quote>90
days after the end of the plan year</quote>.</text>
</paragraph><paragraph id="IDbbc0a4eb0bd14aaa8fe94ea0f758a09a"><enum>(2)</enum><header>Model
notice</header><text>Not later than 270 days after the date of the enactment of
this Act, the Secretary of Labor shall publish a model version of the notice
required by section 101(f) of the Employee Retirement Income Security Act of
1974.</text>
</paragraph></subsection><subsection id="ID85c59b3b99d2402987f5279edffe2c19"><enum>(f)</enum><header>Additional
annual reporting requirements</header><text>Section 103 of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1023) is amended—</text>
<paragraph id="ID4439ee6ddb5c4d22aebd6fa7652deb63"><enum>(1)</enum><text>in subsection
(a)(1)(B), by striking <quote>subsections (d) and (e)</quote> and inserting
<quote>subsections (d), (e), and (f)</quote>; and</text>
</paragraph><paragraph id="ID9ff01422043c42518ec19873101da207"><enum>(2)</enum><text>by adding at the
end the following subsection:</text>
<quoted-block display-inline="no-display-inline" id="id96A3A2983CEB43DE9783629595818D81" style="OLC">
<subsection id="IDe8394afe879d404d9cecdccdc70b0a10"><enum>(f)</enum><text>With respect to
any multiemployer defined benefit plan, an annual report under this section for
a plan year shall include the following:</text>
<paragraph id="ID288cfe6f7091457297bf1f291c4ec31b"><enum>(1)</enum><text>The ratio, as of
the end of such plan year, of—</text>
<subparagraph id="ID97f5a81eaa534386b5f8261036b548da"><enum>(A)</enum><text>the number of
participants who were not in covered service under the plan during the plan
year, to</text>
</subparagraph><subparagraph id="IDdfdfa3192dee49cebad3fc979bb3804c"><enum>(B)</enum><text>the number of
participants who were in covered service under the plan during the plan
year.</text>
</subparagraph></paragraph><paragraph id="IDbcaa729624f246dcbc31055cc11e15a5"><enum>(2)</enum><text>In any case in
which any liabilities to participants or their beneficiaries under such plan as
of the end of such plan year consist (in whole or in part) of liabilities to
such participants and beneficiaries under 2 or more pension plans as of
immediately before such plan year—</text>
<subparagraph id="idEBE3B5649C004C8EA017A221CFFBEFC9"><enum>(A)</enum><text>the funded
percentage of each of such 2 or more pension plans as of the last day of the
plan year immediately before such plan year; and</text>
</subparagraph><subparagraph id="id51944B1081034F3E9CEAE024CEA0E8E4"><enum>(B)</enum><text>the funded
percentage of the plan with respect to which the annual report is filed as of
the last day of such plan year.</text>
</subparagraph></paragraph><paragraph id="ID2f427180dba84e53923083baf2e06758"><enum>(3)</enum><text>For purposes of
paragraph (2), the term <term>funded percentage</term> means, the funded
percentage of the plan as defined in section
302B(f)(2).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="ID339e55c556f94f3e869cb12d6ae9f98f"><enum>(g)</enum><header>Additional
information in annual actuarial statement of multiemployer plan regarding plan
retirement projections</header><text>Section 103(d) of such Act (29 U.S.C.
section 1023(d)) is amended—</text>
<paragraph id="IDaf20b98438ef468e9f748e4dca9cc87c"><enum>(1)</enum><text>by redesignating
paragraphs (12) and (13) as paragraphs (13) and (14), respectively; and</text>
</paragraph><paragraph id="IDc80289d3e8a849908513ccccdf26a1c9"><enum>(2)</enum><text>by inserting
after paragraph (11) the following paragraph:</text>
<quoted-block display-inline="no-display-inline" id="idEBC3D6D457884E79B2243438BC34C9F0" style="OLC">
<paragraph id="ID727675b9dfc4411584144bc0b8af4a19"><enum>(12)</enum><text>In the case of a
multiemployer plan, a statement explaining the actuarial assumptions and
methods used in projecting future retirements and forms of benefit
distributions under the
plan.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="IDba37979c7e2642339180bf19aee8df29"><enum>(h)</enum><header>Multiemployer
plans’ filing after 275 days after plan year only in cases of
hardship</header><text>Section 104(a)(1) of such Act (29 U.S.C. 1024(a)(1)) is
amended by inserting after the first sentence the following new sentence:
<quote>The Secretary shall prescribe regulations to permit extensions in cases
of hardship, on a case-by-case basis, of the deadline for filing the annual
report past 275 days after the close of the plan year for multiemployer pension
plans.</quote>.</text>
</subsection><subsection id="ID23787f8c1f7941d7b36a4e3e9a49794b"><enum>(i)</enum><header>Internet
display of information</header><text>Section 104(b) of such Act (29 U.S.C.
1024(b)) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id195507627D3542938DAEEB23813BF0F8" style="OLC">
<paragraph id="id21F893E7CDCD4A8DB1EB7D0DA4EFC075"><enum>(5)</enum><header>Internet
display of information</header>
<subparagraph id="idED6C6BB1CA1E41FDB2409D3FB24C80BD"><enum>(A)</enum><header>In
general</header><text>Identification and basic plan information and actuarial
information included in the annual report of a multiemployer plan for any plan
year shall be filed with the Secretary in an electronic format which
accommodates display on the Internet, in accordance with regulations prescribed
by the Secretary.</text>
</subparagraph><subparagraph id="id5735CE3185674872A5050806D9ECF96A"><enum>(B)</enum><header>Display by
Secretary</header><text>The Secretary shall develop an Internet site which
displays such information described under subparagraph (A) within 90 days after
the date of the filing of the annual report. The Secretary shall provide for
the display of such information through other appropriate media.</text>
</subparagraph><subparagraph id="idF691C9C53E374BBD87C16C2F558A0EA0"><enum>(C)</enum><header>Display by plan
sponsor</header><text>The Secretary shall promulgate regulations requiring the
plan sponsor to display the information described under subparagraph (A) on any
Internet site maintained by such plan
sponsor.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDe8aeb46ae27b4f1186e1cff1377f7bf9"><enum>(j)</enum><header>Summary annual
report of a multiemployer plan posted within 15 days after deadline for filing
of annual report</header><text>Section 104(b)(3) of such Act (29 U.S.C.
1024(b)(3)) is amended by—</text>
<paragraph id="idD7F6FB0DABE94E3EA33E603A945E798C"><enum>(1)</enum><text>striking
<quote>(3) Within</quote> and inserting <quote>(3)(A) Within</quote>;</text>
</paragraph><paragraph id="id7733918F372949EE87DCD1A4AA7B23F1"><enum>(2)</enum><text>inserting after
<quote>fiscal year of the plan</quote> the following: <quote>(in the case of a
multiemployer plan, within 15 business days after the due date under subsection
(a)(1) for the filing of the annual report for the fiscal year of the
plan),</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id30FBE92ECBC2470298632AE12F65C5A4"><enum>(3)</enum><text>adding at the end
the following:</text>
<quoted-block display-inline="no-display-inline" id="id71EE323711634CF0AC3559225AD9CE25" style="OLC">
<subparagraph id="idAF186545537B41589D695C4D4EDF0F40" indent="up1"><enum>(B)</enum><text>In the case of a multiemployer plan,
posting the text of the summary annual report on the plan sponsor’s Internet
site by the deadline in subparagraph (A) shall be treated as furnishing such
report by that deadline, if such report is furnished as soon as practicable
thereafter and in no event later than 15 business days after the date described
for such plans in subparagraph
(A).</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="ID62538c43c2844d3695a93e106d2c548c"><enum>(k)</enum><header>Disclosure of
plan assets and liabilities in summary annual report of a multiemployer
plan</header><text>Section 104(b)(3)(B) of such Act (as amended by subsection
(j)) is amended further by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idD4ABBEEDC0354ACC9261122616E82386" style="OLC">
<subparagraph id="id1515B9E17A324E58BAB2A25DC0CC6BAE" indent="up1"><enum>(C)</enum><text>In the case of a multiemployer plan,
the material provided pursuant to subparagraph (A) to summarize the latest
annual report shall—</text>
<clause id="id796762C36DCB442F94AF71F1004C3089"><enum>(i)</enum><text>be written in a manner calculated
to be understood by the average plan participant; and</text>
</clause><clause id="id48223D48E2E148599CDB55F149DA98CC"><enum>(ii)</enum><text>shall set forth the total assets
and liabilities of the plan for the plan year for which the latest annual
report was filed and for each of the 2 preceding plan years, as reported in the
annual report for such plan year under this
section.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDb9780a1c3e5f4625b662bcf099d34094"><enum>(l)</enum><header>Information
made available to participants, beneficiaries, and employers with respect to
multiemployer plans</header>
<paragraph id="IDecff3e74a8b64088813ebb6cfdd5dda8"><enum>(1)</enum><header>In
general</header><text>Section 101 of the Employee Retirement Income Security
Act of 1974 (29 U.S.C. 1021) is amended—</text>
<subparagraph id="ID3b26bf05e10941c491e094c3a8448948"><enum>(A)</enum><text>by redesignating
subsection (j) as subsection (k); and</text>
</subparagraph><subparagraph id="ID5a6ec73eea2d465b97d6c71398e30395"><enum>(B)</enum><text>by inserting
after subsection (i) the following:</text>
<quoted-block display-inline="no-display-inline" id="id70B7C793547C4438A80E81D12788CC95" style="OLC">
<subsection id="IDe7cc4a3fe92c47dd95d438b13ca87255"><enum>(j)</enum><header>Multiemployer
plan information made available on request</header>
<paragraph id="ID79d540d1152b485c9b2608435c13cbcd"><enum>(1)</enum><header>In
general</header><text>Each administrator of a multiemployer plan shall furnish
to any plan participant or beneficiary or any employer having an obligation to
contribute to the plan, upon written request—</text>
<subparagraph id="ID21b00bd1a81842de97da518a81ea0288"><enum>(A)</enum><text>a copy of the
actuarial valuation for any plan year and the projections and analyses on which
the actuary’s certification under section 302B(a) was based, once such
projections and analyses have been in the plan’s possession for at least 30
business days; and</text>
</subparagraph><subparagraph id="ID27bea15f6068496f9e193d4435bb4102"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="idD4BBA93A38C44CBB913A0E8A15B38170"><enum>(i)</enum><text>a copy of any
quarterly, semi-annual or annual financial report prepared for the plan by any
plan investment manager or advisor or other plan fiduciary, which summarizes
the plan’s investment portfolio and experience and which has been in the plan’s
possession for at least 30 business days; or</text>
</clause><clause id="idC0AFFF648BA842B5BDE9EFD58821C347" indent="up1"><enum>(ii)</enum><text>if determined appropriate by the
plan sponsor, a quarterly summary of the information contained in such
reports.</text>
</clause></subparagraph></paragraph><paragraph id="IDeeacb96305b340baad87acc98eebfe7a"><enum>(2)</enum><header>Compliance</header><text>Information
required to be provided under paragraph (1)—</text>
<subparagraph id="IDdeb3f32dcf1a4c629a4b1f01fbb4550c"><enum>(A)</enum><text>shall be provided
to the requesting participant, beneficiary, or employer within 30 days after
the request in a form and manner prescribed in regulations of the
Secretary;</text>
</subparagraph><subparagraph id="IDb4f9af5201fd4eed98ce253f1438acd8"><enum>(B)</enum><text>may be provided
in written, electronic, or other appropriate form to the extent such form is
reasonably accessible to persons to whom the information is required to be
provided; and</text>
</subparagraph><subparagraph id="ID9a6ed0cf23244ce291d218fcfb88772a"><enum>(C)</enum><text>shall not include
individually identifiable information regarding any plan participant,
beneficiary, employee, fiduciary or contributing employer or reveal any
proprietary business information regarding the plan, any contributing employer
or any entity providing services to the plan.</text>
</subparagraph></paragraph><paragraph id="ID7e5ff907146749c1aeea08fd5374e1fa"><enum>(3)</enum><header>Limitations</header><text>In
no case shall a participant, beneficiary, or employer be entitled under this
subsection to receive more than copy of any report described in paragraph (1)
during any one 12-month period. The administrator may make a reasonable charge
to cover copying, mailing, and other costs of furnishing copies of such report.
The Secretary may by regulation prescribe the maximum amount which constitutes
a reasonable charge under the preceding
sentence.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" id="IDf69edc39a3a24b4580197d15a4b98190"><enum>(2)</enum><header>Enforcement</header><text>Section
502(c)(4) of such Act (29 U.S.C. 1132(c)(4)) (as amended by section
103(b)(2)(B)) is further amended by striking <quote>section
302(b)(7)(F)(iv)</quote> and inserting <quote>subsection (j) of section 101,
and 302(b)(7)(F)(iv)</quote>.</text>
</paragraph><paragraph id="ID218e146837564e3c96533db84683aea4"><enum>(3)</enum><header>Regulations</header><text>The
Secretary shall prescribe regulations under section 101(j)(2) of the Employee
Retirement Income Security Act of 1974 (added by paragraph (1)) not later than
270 days after the date of the enactment of this Act.</text>
</paragraph></subsection><subsection id="ID81358bf2fc8c4b6a93f30cfda09e2bba"><enum>(m)</enum><header>Notice of
potential withdrawal liability to multiemployer plans</header>
<paragraph id="ID656c7c9060714d12859db1d715d6a09f"><enum>(1)</enum><header>In
general</header><text>Section 101 of such Act (as amended by this section) is
amended—</text>
<subparagraph id="IDada3531376d04f6898c81d63ab8bdec4"><enum>(A)</enum><text>by redesignating
subsection (k) as subsection (l); and</text>
</subparagraph><subparagraph id="IDa084f8975c344f4bb31559700e06c528"><enum>(B)</enum><text>by inserting
after subsection (j) the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="idEDF07370B26744AA92726063A8695F1D" style="OLC">
<subsection id="IDd17a859986e14ed09f4ffbc7f53d71e7"><enum>(k)</enum><header>Notice of
potential withdrawal liability</header>
<paragraph id="ID79358f7808b4484e8c73cf41278b77c1"><enum>(1)</enum><header>In
general</header><text>The plan sponsor or administrator of a multiemployer plan
shall furnish to any employer who has an obligation to contribute under the
plan and who so requests in writing notice of—</text>
<subparagraph id="ID4e6e73156ce74ebcb796691a01d7d2d9"><enum>(A)</enum><text>the estimated
amount which would be the amount of such employer’s withdrawal liability under
part 1 of subtitle E of title IV if such employer withdrew on the last day of
the plan year preceding the date of the request; and</text>
</subparagraph><subparagraph id="ID8aaa1a7545f94d72baeb23a2ebbd89d3"><enum>(B)</enum><text>an explanation of
how such estimated liability amount was determined, including the actuarial
assumptions and methods used to determine the value of plan liabilities and
assets and the data regarding employer contributions, unfunded vested benefits,
annual changes in the plan’s unfunded vested benefits and the application of
any relevant limitations on the estimated withdrawal liability.</text>
</subparagraph></paragraph><paragraph id="ID1d2fab97998b4907b39cdf28ac1eb12e"><enum>(2)</enum><header>Compliance</header><text>Any
notice required to be provided under paragraph (1)—</text>
<subparagraph id="IDeae056175176402490e3a4971795f930"><enum>(A)</enum><text>shall be provided
to the requesting employer within 180 days after the request in a form and
manner prescribed in regulations by the Secretary (or, subject to such
regulations, such longer time as may be necessary in the case of a plan that
determines withdrawal liability based on the attributable method under section
4211(c)(4) or a modified attributable method approved by the Pension Benefit
Guaranty Corporation under section 4211(c)(5)); and</text>
</subparagraph><subparagraph id="ID3b906158ae604c9ca3dcb224a824fe31"><enum>(B)</enum><text>may be provided
in written, electronic, or other appropriate form to the extent such form is
reasonably accessible to employers to whom the information is required to be
provided.</text>
</subparagraph></paragraph><paragraph id="ID0dd34111ade14400b77c849962c7b4b6"><enum>(3)</enum><header>Limitations</header><text>In
no case shall an employer be entitled under this subsection to receive more
than one notice described in paragraph (1) during any one 12-month period. The
person required to provide such notice may make a reasonable charge to cover
copying, mailing, and other costs of furnishing such notice. The Secretary may
by regulation prescribe the maximum amount which constitutes a reasonable
charge under the preceding
sentence.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="ID0d591bfbe8664f4ea10703dda25647b9"><enum>(2)</enum><header>Enforcement</header><text>Section
502(c)(4) of such Act (29 U.S.C. 1132(c)(4)) (as amended by paragraph (1)) is
further amended by striking <quote>subsections (j)</quote> and inserting
<quote>subsections (j) and (k)</quote>.</text>
</paragraph></subsection><subsection id="ID118bbeb955444c1c8977ada61897cf5a"><enum>(n)</enum><header>Model
form</header><text>Not later than 270 days after the date of the enactment of
this Act, the Secretary of Labor shall publish a model form for providing the
statements, schedules, and other material required to be provided under section
104(b)(3) of the Employee Retirement Income Security Act of 1974, as amended by
this section.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID52df5515f36a47988e8c962d5aebdcb6"><enum>(o)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to plan
years beginning after December 31, 2006.</text>
</subsection></section><enum>III</enum><header>Deduction
limitations</header>
<section id="IDd89c05eb2136475e93a535386dbcc1f1"><enum>301.</enum><header>Increase in
deduction limits</header>
<subsection id="IDba25ae4ee6e64b718250968b5e29c146"><enum>(a)</enum><header>Increase in
deduction limit for multiemployer plans</header><text>Section 404(a)(1)(D) of
the Internal Revenue Code of 1986 is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id4A68E2BA3ED345F38BD6FD025733A8C4" style="OLC">
<subparagraph id="ID316253240642414ba316c1dbc908ec08"><enum>(D)</enum><header>Amount
determined on basis of unfunded current liability</header>
<clause id="ID9a378d1f9e394a438d914793cb930606"><enum>(i)</enum><header>In
general</header><text>In the case of a defined benefit plan which is a
multiemployer plan, except as provided in regulations, the maximum amount
deductible under the limitations of this paragraph shall not be less than the
unfunded current liability of the plan.</text>
</clause><clause id="IDf89d68876ded49598e36aa3784281d11"><enum>(ii)</enum><header>Unfunded
current liability</header><text>For purposes of clause (i), the term
<quote>unfunded current liability</quote> means the excess (if any) of—</text>
<subclause id="IDf1b15712602e43b2955989b48c377c9e"><enum>(I)</enum><text>140 percent of
the current liability of the plan determined under section 302B(c)(6)(C) of the
Employee Retirement Income Security Act of 1974, over</text>
</subclause><subclause id="IDd9aea8019cb6467496fecd9bf3138766"><enum>(II)</enum><text>the value of the
plan’s assets determined under section 302B(c)(2) of such
Act.</text>
</subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID4b9a804c26654491bf114f5dd4e0d150"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to
contributions for taxable years beginning after 2006.</text>
</subsection></section><section id="IDbfb8c597c2d046ca9958f38bc0a666be"><enum>302.</enum><header>Updating
deduction rules for combination of plans</header>
<subsection id="ID3257d786f24e4a31ab3815b9d7936787"><enum>(a)</enum><header>In
general</header><text>Subparagraph (C) of section 404(a)(7) of the Internal
Revenue Code of 1986 (relating to limitation on deductions where combination of
defined contribution plan and defined benefit plan) is amended by adding after
clause (ii) the following new clauses:</text>
<quoted-block display-inline="no-display-inline" id="idEA2D09C5D6824FBB833BE18982D87BA8" style="OLC">
<clause id="IDc0fe45c80a2e4db5996506611d1cd775"><enum>(iii)</enum><header>Limitations</header><text>In
the case of employer contributions to 1 or more defined contribution plans,
this paragraph shall only apply to the extent that such contributions exceed 6
percent of the compensation otherwise paid or accrued during the taxable year
to the beneficiaries under such plans. For purposes of this clause, amounts
carried over from preceding taxable years under subparagraph (B) shall be
treated as employer contributions to 1 or more defined contribution plans to
the extent attributable to employer contributions to such plans in such
preceding taxable years.</text>
</clause><clause id="ID63c745bea8b842c6953ea488164914e7"><enum>(iv)</enum><header>Multiemployer
plans</header><text>Contributions to a multiemployer pension plan shall not be
taken into account in applying the requirements of subparagraph
(A).</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDd86ae11f7b46418fa79d2fd3c661bbe4"><enum>(b)</enum><header>Conforming
amendment</header><text>Subparagraph (A) of section 4972(c)(6) of such Code
(relating to nondeductible contributions) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idE1F87FB704FC4E8A894E42E492E4E873" style="OLC">
<subparagraph id="ID421bb58fef0b44a8b86a17b89b82f672"><enum>(A)</enum><text>so much of the
contributions to 1 or more defined contribution plans which are not deductible
when contributed solely because of section 404(a)(7) as does not exceed the
amount of contributions described in section 401(m)(4)(A),
or</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID9cba39331a2b4c2ebc145920b355da2b"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to
contributions for taxable years beginning after December 31, 2006.</text>
</subsection></section>