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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1825 Introduced in Senate (IS)]

109th CONGRESS
  1st Session
                                S. 1825

 To amend the Employee Retirement Income Security Act of 1974 and the 
Internal Revenue Code of 1986 to revise the funding and deduction rules 
    for multiemployer defined benefit plans, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                            October 5, 2005

 Mr. Santorum (for himself and Ms. Stabenow) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL

 
 To amend the Employee Retirement Income Security Act of 1974 and the 
Internal Revenue Code of 1986 to revise the funding and deduction rules 
    for multiemployer defined benefit plans, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Multiemployer Plan Funding and 
Deduction Reform Act of 2005''.

     TITLE I--FUNDING RULES FOR MULTIEMPLOYER DEFINED BENEFIT PLANS

SEC. 101. FUNDING RULES FOR MULTIEMPLOYER DEFINED BENEFIT PLANS.

    (a) In General.--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:

          ``minimum funding standards for multiemployer plans

    ``Sec. 302A. (a) In General .--For purposes of section 302, the 
accumulated funding deficiency of a multi-employer plan for any plan 
year is--
            ``(1) 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
            ``(2) if the multiemployer plan is in reorganization any 
        plan year, the accumulated funding deficiency of the plan 
        determined under section 4243.
    ``(b) Funding Standard Account.--
            ``(1) Account required.--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.
            ``(2) Charges to account.--For a plan year, the funding 
        standard account shall be charged with the sum of--
                    ``(A) the normal cost of the plan for the plan 
                year,
                    ``(B) the amounts necessary to amortize in equal 
                annual installments (until fully amortized)--
                            ``(i) 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,
                            ``(ii) 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,
                            ``(iii) 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,
                            ``(iv) separately, with respect to each 
                        plan year, the net experience loss (if any) 
                        under the plan, over a period of 15 plan years, 
                        and
                            ``(v) 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,
                    ``(C) 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,
                    ``(D) 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
                    ``(E) 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).
            ``(3) Credits to account.--For a plan year, the funding 
        standard account shall be credited with the sum of--
                    ``(A) the amount considered contributed by the 
                employer to or under the plan for the plan year,
                    ``(B) the amount necessary to amortize in equal 
                annual installments (until fully amortized)--
                            ``(i) 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,
                            ``(ii) separately, with respect to each 
                        plan year, the net experience gain (if any) 
                        under the plan, over a period of 15 plan years, 
                        and
                            ``(iii) 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,
                    ``(C) the amount of the waived funding deficiency 
                (within the meaning of section 302(c)(3)) for the plan 
                year; and
                    ``(D) 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.
            ``(4) Special rule for amounts first amortized to plan 
        years before 2006.--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.
            ``(5) Combining and offsetting amounts to be amortized.--
        Under regulations prescribed by the Secretary of the Treasury, 
        amounts required to be amortized under paragraph (2) or 
        paragraph (3), whichever is applicable--
                    ``(A) 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
                    ``(B) 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.
            ``(6) Interest.--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.
            ``(7) Certain amortization charges and credits.--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)--
                    ``(A) 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,
                    ``(B) 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,
                    ``(C) 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
                    ``(D) 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--
                            ``(i) was adopted before such date, and
                            ``(ii) 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.
            ``(8) Special rules relating to charges and credits to 
        funding standard account.--For purposes of this part--
                    ``(A) Withdrawal liability.--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.
                    ``(B) Adjustments when a multiemployer plan leaves 
                reorganization.--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--
                            ``(i) shall be eliminated by an offsetting 
                        credit or charge (as the case may be), but
                            ``(ii) 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.
                    ``(C) Plan payments to supplemental program or 
                withdrawal liability payment fund.--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.
                    ``(D) Interim withdrawal liability payments.--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.
                    ``(E) Election for deferral of charge for portion 
                of net experience loss.--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).
                    ``(F) Financial assistance.--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.
                    ``(G) Short-term benefits.--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 `15'.
    ``(c) Additional Rules.--
            ``(1) Determinations to be made under funding method.--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.
            ``(2) Valuation of assets.--
                    ``(A) In general.--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.
                    ``(B) Election with respect to bonds.--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.
            ``(3) Actuarial assumptions must be reasonable.--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--
                    ``(A) each of which is reasonable (taking into 
                account the experience of the plan and reasonable 
                expectations), and
                    ``(B) which, in combination, offer the actuary's 
                best estimate of anticipated experience under the plan.
            ``(4) Treatment of certain changes as experience gain or 
        loss.--For purposes of this section, if--
                    ``(A) a change in benefits under the Social 
                Security Act or in other retirement benefits created 
                under Federal or State law, or
                    ``(B) a change in the definition of the term 
                `wages' 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,
        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.
            ``(5) Full funding.--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--
                    ``(A) the funding standard account shall be 
                credited with the amount of such excess, and
                    ``(B) 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.
            ``(6) Full-funding limitation.--
                    ``(A) In general.--For purposes of paragraph (5), 
                the term `full-funding limitation' means the excess (if 
                any) of--
                            ``(i) 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
                            ``(ii) the lesser of--
                                    ``(I) the fair market value of the 
                                plan's assets, or
                                    ``(II) the value of such assets 
                                determined under paragraph (2).
                    ``(B) Minimum amount.--
                            ``(i) In general.--In no event shall the 
                        full-funding limitation determined under 
                        subparagraph (A) be less than the excess (if 
                        any) of--
                                    ``(I) 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
                                    ``(II) the value of the plan's 
                                assets determined under paragraph (2).
                            ``(ii) Assets.--For purposes of clause (i), 
                        assets shall not be reduced by any credit 
                        balance in the funding standard account.
                    ``(C) Full funding limitation.--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).
                    ``(D) Current liability.--For purposes of this 
                paragraph--
                            ``(i) In general.--The term `current 
                        liability' means all liabilities to employees 
                        and their beneficiaries under the plan.
                            ``(ii) Treatment of unpredictable 
                        contingent event benefits.--For purposes of 
                        clause (i), any benefit contingent on an event 
                        other than--
                                    ``(I) age, service, compensation, 
                                death, or disability, or
                                    ``(II) an event which is reasonably 
                                and reliably predictable (as determined 
                                by the Secretary of the Treasury),
                        shall not be taken into account until the event 
                        on which the benefit is contingent occurs.
                            ``(iii) Interest rate used.--The rate of 
                        interest used to determine current liability 
                        under this paragraph shall be the rate of 
                        interest determined under subparagraph (E).
                            ``(iv) Mortality tables.--
                                    ``(I) Commissioners' standard 
                                table.--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.
                                    ``(II) Secretarial authority.--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.
                            ``(v) Separate mortality tables for the 
                        disabled.--Notwithstanding clause (iv)--
                                    ``(I) In general.--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.
                                    ``(II) Special rule for 
                                disabilities occurring after 1994.--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.
                            ``(vi) Periodic review.--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.
                    ``(E) Required change of interest rate.--For 
                purposes of determining a plan's current liability for 
                purposes of this paragraph--
                            ``(i) In general.--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.
                            ``(ii) Permissible range.--For purposes of 
                        this subparagraph--
                                    ``(I) In general.--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.
                                    ``(II) Secretarial authority.--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.
                            ``(iii) Assumptions.--Notwithstanding 
                        paragraph (3)(A), the interest rate used under 
                        the plan shall be--
                                    ``(I) determined without taking 
                                into account the experience of the plan 
                                and reasonable expectations, but
                                    ``(II) consistent with the 
                                assumptions which reflect the purchase 
                                rates which would be used by insurance 
                                companies to satisfy the liability 
                                under the plan.
            ``(7) Annual valuation.--
                    ``(A) In general.--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.
                    ``(B) Valuation date.--
                            ``(i) Current year.--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.
                            ``(ii) Use of prior year valuation.--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).
                            ``(iii) Adjustments.--Information under 
                        clause (ii) shall, in accordance with 
                        regulations, be actuarially adjusted to reflect 
                        significant differences in participants.
                            ``(iv) Limitation.--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).
            ``(8) Time when certain contributions deemed made.--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.
            ``(9) Interest rule for waivers and extensions.--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.
    ``(d) Extension of Amortization Periods for Multiemployer Plans.--
In the case of a multiemployer plan--
            ``(1) Extension.--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.
            ``(2) Criteria.--A multiemployer pension plan meets the 
        criteria of this paragraph if its actuary certifies that, based 
        on reasonable assumptions--
                    ``(A) absent the extension, the plan would have an 
                accumulated funding deficiency in the current plan year 
                or any of the 9 succeeding plan years,
                    ``(B) the plan sponsor has adopted a plan to 
                improve the plan's funding status, and
                    ``(C) the plan is projected to have sufficient 
                assets to timely pay expected benefits and anticipated 
                expenditures over the amortization period as extended.
            ``(3) Additional extension.--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--
                    ``(A) result in--
                            ``(i) a substantial risk to the voluntary 
                        continuation of the plan, or
                            ``(ii) a substantial curtailment of pension 
                        benefit levels or employee compensation, and
                    ``(B) be adverse to the interests of plan 
                participants in the aggregate.
        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.
            ``(4) Advance notice.--
                    ``(A) In general.--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.
                    ``(B) Consideration of relevant information.--The 
                Secretary of the Treasury shall consider any relevant 
                information provided by a person to whom notice was 
                given under paragraph (1).''.
    (b) Shortfall Funding Method.--
            (1) In general.--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).
            (2) Criteria.--A multiemployer pension plan meets the 
        criteria of this clause if--
                    (A) 5 plan years have elapsed since the plan last 
                elected to use (or cease the use of) the shortfall 
                funding method, and
                    (B) the plan is not operating under an amortization 
                period extension under subsection (d).
            (3) Shortfall funding method defined.--As used in this 
        subparagraph, the term ``shortfall funding method'' 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).
            (4) Section 302(c)(7) restrictions to apply.--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.
            (5) Use of shortfall method not to preclude other 
        options.--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.
    (c) Conforming Amendments.--
            (1) Section 301 of the Employee Retirement Income Security 
        Act of 1974 (29 U.S.C. 1081) is amended by striking subsection 
        (d).
            (2) 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:

``Sec. 302A. Minimum funding standards for multiemployer plans.''.
    (d) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to plan years beginning after 2006.
            (2) Grandfather.--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.

SEC. 102. ADDITIONAL FUNDING RULES FOR MULTIEMPLOYER PLANS IN 
              ENDANGERED OR CRITICAL STATUS.

    (a) In General.--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:

``additional funding rules for multiemployer plans in endangered status 
                           or critical status

    ``Sec. 302B. (a) Annual Certification by Plan Actuary.--
            ``(1) In general.--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.
            ``(2) Actuarial projections of assets and liabilities.--
                    ``(A) In general.--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.
                    ``(B) Determinations of future contributions.--Any 
                such actuarial projection of plan assets shall assume--
                            ``(i) 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
                            ``(ii) 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.
            ``(3) Penalty for failure to secure timely actuarial 
        certification.--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).
            ``(4) Notice.--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.
    ``(b) Funding Rules for Multiemployer Plans in Endangered Status.--
            ``(1) In general.--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).
            ``(2) Endangered status.--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--
                    ``(A) the plan's funded percentage for such plan 
                year is less than 80 percent, or
                    ``(B) 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).
            ``(3) Funding improvement plan.--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:
                    ``(A) Certain endangered plans.--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.
                    ``(B) All other endangered plans.--In the case of 
                an endangered plan described in paragraph (2)(B)--
                            ``(i) an increase in the plan's funded 
                        percentage such that--
                                    ``(I) the difference between 100 
                                percent and the plan's funded 
                                percentage at the end of the funding 
                                improvement period is not more than,
                                    ``(II) \2/3\ of the difference 
                                between 100 percent and the plan's 
                                funded percentage at the beginning of 
                                the funding improvement period.
                            ``(ii) 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)).
                    ``(C) Funding improvement period.--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 
                --
                            ``(i) the second anniversary of the date of 
                        the adoption of the funding improvement plan, 
                        or
                            ``(ii) 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.
                    ``(D) Special rules for certain seriously 
                underfunded plans.--
                            ``(i) 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 `\4/5\' for `\2/3\' and paragraph 
                        (3)(C) shall be applied by substituting `the 
                        15-year period' for `the 10-year period'.
                            ``(ii) 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--
                                    ``(I) 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
                                    ``(II) the plan year is prior to 
                                the day described in subparagraph 
                                (C)(ii),
                        subparagraph (B)(i)(II) shall be applied by 
                        substituting `\4/5\' for `\2/3\' and 
                        subparagraph (C) shall be applied by 
                        substituting `the 15-year period' for `the 10-
                        year period'.
                            ``(iii) 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 `the 15-year period' for `the 10-
                        year period'.
                    ``(E) Reporting.--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).
            ``(4) Development of funding improvement plan.--
                    ``(A) Actions by plan sponsor pending commencement 
                of funding improvement period.--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--
                            ``(i) an increase in the plan's funded 
                        percentage, and
                            ``(ii) postponement of an accumulated 
                        funding deficiency for at least 1 additional 
                        plan year.
                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.
                    ``(B) Information provided to bargaining parties by 
                plan sponsor.--
                            ``(i) In general.--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.
                            ``(ii) Alternatives at plan sponsor's 
                        discretion.--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.
            ``(5) Maintenance of contributions pending adoption of 
        funding improvement plan.--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--
                    ``(A) a reduction in the level of contributions for 
                any participants,
                    ``(B) a suspension of contributions with respect to 
                any period of service, or
                    ``(C) any new direct or indirect exclusion of 
                younger or newly hired employees from plan 
                participation.
            ``(6) No benefit increases pending adoption of funding 
        improvement plan.--Pending adoption of a funding improvement 
        plan with respect to an endangered multiemployer plan--
                    ``(A) In general.--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.
                    ``(B) Exception.--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.
            ``(7) Penalty if no funding improvement plan adopted.--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).
            ``(8) Compliance with funding improvement plan.--Upon 
        adoption of a funding improvement plan with respect to an 
        endangered multiemployer plan--
                    ``(A) a plan described in paragraph (2)(B) may not 
                be amended--
                            ``(i) so as to be inconsistent with the 
                        funding improvement plan, or
                            ``(ii) 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
                    ``(B) a plan to which paragraph (2)(B) does not 
                apply may not be amended--
                            ``(i) so as to be inconsistent with the 
                        funding improvement plan, or
                            ``(ii) 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).
            ``(9) Updates to funding improvement plan and schedules.--
                    ``(A) Funding improvement plan.--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.
                    ``(B) Schedules.--The plan sponsor may periodically 
                update any schedule of contribution rates provided 
                under this subsection to reflect the experience of the 
                plan.
                    ``(C) Duration of schedule.--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.
                    ``(D) Duration of funding improvement plan.--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).
    ``(c) Funding Rules for Multiemployer Plans in Critical Status.--
            ``(1) In general.--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).
            ``(2) Critical status.--
                    ``(A) Entry.--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) .
                    ``(B) Emergence.--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).
            ``(3) Criticality description.--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:
                    ``(A) A plan is described in this subparagraph if, 
                as of the beginning of the current plan year--
                            ``(i) the funded percentage of the plan is 
                        less than 65 percent, and
                            ``(ii) the sum of--
                                    ``(I) the market value of plan 
                                assets, plus
                                    ``(II) 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).
                    ``(B) A plan is described in this subparagraph if, 
                as of the beginning of the current plan year, the sum 
                of--
                            ``(i) the market value of plan assets, plus
                            ``(ii) 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,
                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).
                    ``(C) A plan is described in this subparagraph if--
                            ``(i) as of the beginning of the current 
                        plan year, the funded percentage of the plan is 
                        less than 65 percent, and
                            ``(ii) 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).
                    ``(D) A plan is described in this subparagraph if--
                            ``(i)(I) 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
                            ``(II) the present value, as of the 
                        beginning of the current plan year, of the 
                        reasonably anticipated employer contributions 
                        for the current plan year,
                            ``(ii) 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
                            ``(iii) 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).
                    ``(E) A plan is described in this subparagraph if--
                            ``(i) the funded percentage of the plan is 
                        greater than 65 percent for the current plan 
                        year, and
                            ``(ii) 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).
            ``(4) Rehabilitation plan.--
                    ``(A) In general.--A rehabilitation plan shall 
                consist of--
                            ``(i) 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
                            ``(ii) 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.
                    ``(B) Rehabilitation period.--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--
                            ``(i) the second anniversary of the date of 
                        the adoption of the rehabilitation plan, or
                            ``(ii) 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.
                    ``(C) Reporting.--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.
            ``(5) Schedules of contributions, benefits affected.--
                    ``(A) Presentation by plan sponsor.--
                            ``(i) In general.--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.
                            ``(ii) Alternatives at plan sponsor's 
                        discretion.--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.
                            ``(iii) Limitation on reduction in rates of 
                        future accruals.--The schedule described in 
                        subparagraph (A)(i) of this paragraph shall not 
                        reduce the rate of future accruals below--
                                    ``(I) 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
                                    ``(II) if lower, the accrual rate 
                                under the plan on such date.
                        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.
                    ``(B) Updates to rehabilitation plan and 
                schedules.--
                            ``(i) Rehabilitation plan.--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.
                            ``(ii) Schedules.--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.
                            ``(iii) Duration of schedule.--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.
                    ``(C) Default schedule.--
                            ``(i) In general.--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.
                            ``(ii) Deemed withdrawal.--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.
            ``(6) Temporary restrictions on contribution rates.--
        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--
                    ``(A) a reduction in the level of contributions for 
                any participants,
                    ``(B) a suspension of contributions with respect to 
                any period of service, or
                    ``(C) any new direct or indirect exclusion of 
                younger or newly hired employees from plan 
                participation.
            ``(7) Restrictions on benefit increases.--
                    ``(A) Pending adoption of rehabilitation plan.--
                Pending adoption of a rehabilitation plan with respect 
                to a multiemployer plan in critical status--
                            ``(i) In general.--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.
                            ``(ii) Exception.--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.
                    ``(B) After adoption of a rehabilitation plan.--
                After adoption of a rehabilitation plan with respect to 
                a multiemployer plan in critical status, the 
                multiemployer plan may not be amended--
                            ``(i) so as to be inconsistent with the 
                        rehabilitation plan, or
                            ``(ii) 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.
    ``(d) Expedited Resolution of Plan Sponsor Decisions.--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.
    ``(e) Nonparticipation.--
            ``(1) Both bargained and non-bargained employee-
        participants.--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.
            ``(2) Non-bargained employees only.--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).
            ``(3) Employees covered by a collective bargaining 
        agreement.--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).
    ``(f) Definitions; Actuarial Method.--For purposes of this 
section--
            ``(1) Bargaining party.--The term `bargaining party' means, 
        in connection with a multiemployer plan--
                    ``(A) an employer that has an obligation to 
                contribute under the plan, and
                    ``(B) an employee organization which, for purposes 
                of collective bargaining, represents plan participants 
                employed by such an employer.
            ``(2) Funded percentage.--The term `funded percentage' 
        means the percentage expressed as a ratio--
                    ``(A) the numerator of which is the value of the 
                plan's assets, as determined under section 302A(c)(2), 
                and
                    ``(B) the denominator of which is the accrued 
                liability of the plan, determined using actuarial 
                assumptions described in section 302A(c)(3).
            ``(3) Accumulated funding deficiency.--The term 
        `accumulated funding deficiency' has the meaning provided such 
        term in section 302A(a).
            ``(4) Active participant.--The term `active participant' 
        means, in connection with a multiemployer plan, a participant 
        who is in covered service under the plan.
            ``(5) Inactive participant.--The term `inactive 
        participant' means, in connection with a multiemployer plan, a 
        participant, or the beneficiary or alternate payee of a 
        participant, who--
                    ``(A) is not in covered service under the plan, and
                    ``(B) is in pay status under the plan or has a 
                nonforfeitable right to benefits under the plan.
            ``(6) Pay status.--A person is in `pay status' under a 
        multiemployer plan if--
                    ``(A) 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
                    ``(B) to the extent provided in regulations of the 
                Secretary of the Treasury, such person is entitled to 
                such a benefit under the plan.
            ``(7) Obligation to contribute.--The term `obligation to 
        contribute' has the meaning provided such term under section 
        4212(a).
            ``(8) Actuarial method.--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).''.
    (b) Cause of Action to Compel Adoption of Funding Improvement or 
Rehabilitation Plan.--Section 502(a) of the Employee Retirement Income 
Security Act of 1974 shall be amended by (1) striking ``or'' at the end 
of paragraph (8) thereof, (2) striking ``amounts.'' at the end of 
paragraph (9) and substituting therefor ``amounts; or'' and adding, 
after paragraph (9), the following:
            ``(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.''.
    (c) 4971 Excise Tax Inapplicable.--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:
    ``(g) Multiemployer Plans in Critical Status.--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).''.
    (d) No Additional Contributions Required.--
            (1) Section 302(c)(11) of Employee Retirement Income 
        Security Act of 1974 is amended by adding at the end thereof 
        the following new subparagraph:
                    ``(C) Multiemployer plans in critical status.--
                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).''.
            (2) Section 412(c)(11) of the Internal Revenue Code of 1986 
        is amended by adding at the end the following new subparagraph:
                    ``(C) Multiemployer plans in critical status.--
                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).''.
    (e) Conforming Amendment.--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:

``Sec. 302B. Additional funding rules for multiemployer plans in 
                            endangered status or critical status.''.
    (f) Effective Date.--The amendment made by this section shall apply 
with respect to plan years beginning after 2006.

SEC. 103. MEASURE TO FORESTALL INSOLVENCY OF MULTIEMPLOYER PLANS.

    Section 4245(d)(1) of the Employee Retirement Income Security Act 
of 1974 (29 U.S.C. 1426(d)(1)) is amended--
            (1) by striking ``3 plan years'' the second place it 
        appears and inserting ``5 plan years'', and
            (2) by adding at the end the following new sentence: ``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.''

SEC. 104. WITHDRAWAL LIABILITY REFORMS.

    (a) Repeal of Limitation on Withdrawal Liability in the Event of 
Certain Sales of Employer Assets to Unrelated Parties.--
            (1) In general.--Section 4225 of the Employee Retirement 
        Income Security Act of 1974 (29 U.S.C. 1405) is repealed.
            (2) Conforming amendment.--The table of contents in section 
        1 of such Act is amended by striking the item relating to 
        section 4225.
            (3) Effective date.--The amendments made by this section 
        shall apply with respect to sales occurring on or after January 
        1, 2007.
    (b) Repeal of Limitation to 20 Annual Payments.--
            (1) In general.--Section 4219 (c) (1) of such Act (29 
        U.S.C. 1399(c)(1)) is amended by striking subparagraph (B).
            (2) Effective date.--The amendment made by this section 
        shall apply with respect to withdrawals occurring on or after 
        January 1, 2007.
    (c) Withdrawal Liability Continues If Work Contracted Out.--
            (1) In general.--Clause (i) of section 4205(b)(2)(A) of 
        such Act (29 U.S.C. 1385(b (2)(A)) is amended by inserting ``or 
        to another party or parties'' after ``to another location''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply with respect to work transferred on or after the 
        date of the enactment of this Act.
    (d) Repeal of Special Rule for Long and Short Haul Trucking 
Industry.--
            (1) In general.--Subsection (d) of section 4203 of such Act 
        (29 U.S.C. 1383(4)) is repealed.
            (2) Effective date.--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.
    (e) Application of Rules to Plans Primarily Covering Employees in 
the Building and Construction.--
            (1) In general.--Section 4210(b) of such Act (29 U.S.C. 
        1390(b)) is amended--
                    (A) by striking paragraph (1), and
                    (B) by redesignating paragraphs (2) through (4) as 
                paragraphs (1) through (3), respectively.
            (2) Restart rule.--Section 4211(c) of such Act is amended--
                    (A) by striking ``, other than a plan which 
                primarily covers employees in the building and 
                construction industry,'', and
                    (B) by striking the second sentence thereof.
            (3) Effective date.--The amendments made by this subsection 
        shall apply with respect to plan withdrawals occurring on or 
        after January 1, 2007.

SEC. 105. SPECIAL RULE FOR CERTAIN BENEFIT RESTORATIONS.

    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.

                          TITLE II--DISCLOSURE

SEC. 201. MULTIEMPLOYER DEFINED BENEFIT PLAN FUNDING NOTICES.

    (a) Inclusion of Statement of the Ratio of Inactive Participants to 
Active Participants.--Section 101(f)(2)(B) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1021(f)(2)(B)) is amended--
            (1) in clause (iii), by striking ``and'' at the end;
            (2) in clause (iv), by striking ``apply.'' and inserting 
        ``apply; and''; and
            (3) by adding at the end the following:
                            ``(v) a statement of the ratio, as of the 
                        end of the plan year to which the notice 
                        relates, of--
                                    ``(I) the number of participants 
                                who were not in covered service under 
                                the plan during the plan year; to
                                    ``(II) the number of participants 
                                who were in covered service under the 
                                plan during the plan year.''.
    (b) Comparison of Value of Plan Assets to Annual Liability for 
Benefits.--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--
            (1) by striking clause (ii) and inserting the following:
                            ``(ii) a statement of a reasonable estimate 
                        of--
                                    ``(I) the value of the plan's 
                                assets as of the last day of the plan 
                                year to which the notice relates;
                                    ``(II) the liability of the plan 
                                for benefit payments and administrative 
                                expenses for the plan year to which the 
                                notice relates; and
                                    ``(III) the ratio of the amount 
                                determined under subclause (I) to the 
                                amount determined under subclause 
                                (II);''; and
            (2) by adding at the end of clause (v) the following: ``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.''.
    (c) Statement of Plan's Funding Policy and Method of Asset 
Allocation.--Section 101(f)(2)(B) of such Act, as amended by this Act, 
is amended--
            (1) in clause (iv), by striking ``and'' at the end;
            (2) in clause (v), by striking the period and inserting ``; 
        and''; and
            (3) by inserting after clause (v) the following new clause:
                            ``(vi) 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.''.
    (d) Notice of Funding Improvement Plan or Rehabilitation Plan.--
Section 101(f)(2)(B) of such Act, as amended by this Act, is amended--
            (1) in clause (v), by striking ``and'' at the end;
            (2) in clause (vi), by striking the period and inserting 
        ``; and''; and
            (3) by inserting after clause (vi) the following:
                            ``(vii) 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.''.
    (e) Notice Due 90 Days After End of Plan Year.--
            (1) In general.--Section 101(f)(3) of such Act (29 U.S.C. 
        1021(f)(3)) is amended by striking ``two months after the 
        deadline (including extensions) for filing the annual report 
        for the plan year'' and inserting ``90 days after the end of 
        the plan year''.
            (2) Model notice.--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.
    (f) Additional Annual Reporting Requirements.--Section 103 of the 
Employee Retirement Income Security Act of 1974 (29 U.S.C. 1023) is 
amended--
            (1) in subsection (a)(1)(B), by striking ``subsections (d) 
        and (e)'' and inserting ``subsections (d), (e), and (f)''; and
            (2) by adding at the end the following subsection:
    ``(f) With respect to any multiemployer defined benefit plan, an 
annual report under this section for a plan year shall include the 
following:
            ``(1) The ratio, as of the end of such plan year, of--
                    ``(A) the number of participants who were not in 
                covered service under the plan during the plan year, to
                    ``(B) the number of participants who were in 
                covered service under the plan during the plan year.
            ``(2) 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--
                    ``(A) 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
                    ``(B) the funded percentage of the plan with 
                respect to which the annual report is filed as of the 
                last day of such plan year.
            ``(3) For purposes of paragraph (2), the term `funded 
        percentage' means, the funded percentage of the plan as defined 
        in section 302B(f)(2).''.
    (g) Additional Information in Annual Actuarial Statement of 
Multiemployer Plan Regarding Plan Retirement Projections.--Section 
103(d) of such Act (29 U.S.C. section 1023(d)) is amended--
            (1) by redesignating paragraphs (12) and (13) as paragraphs 
        (13) and (14), respectively; and
            (2) by inserting after paragraph (11) the following 
        paragraph:
            ``(12) 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.''.
    (h) Multiemployer Plans' Filing After 275 Days After Plan Year Only 
in Cases of Hardship.--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: ``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.''.
    (i) Internet Display of Information.--Section 104(b) of such Act 
(29 U.S.C. 1024(b)) is amended by adding at the end the following:
            ``(5) Internet display of information.--
                    ``(A) In general.--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.
                    ``(B) Display by secretary.--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.
                    ``(C) Display by plan sponsor.--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.''.
    (j) Summary Annual Report of a Multiemployer Plan Posted Within 15 
Days After Deadline for Filing of Annual Report.--Section 104(b)(3) of 
such Act (29 U.S.C. 1024(b)(3)) is amended by--
            (1) striking ``(3) Within'' and inserting ``(3)(A) 
        Within'';
            (2) inserting after ``fiscal year of the plan'' the 
        following: ``(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),''; and
            (3) adding at the end the following:
            ``(B) 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).''.
    (k) Disclosure of Plan Assets and Liabilities in Summary Annual 
Report of a Multiemployer Plan.--Section 104(b)(3)(B) of such Act (as 
amended by subsection (j)) is amended further by adding at the end the 
following:
            ``(C) In the case of a multiemployer plan, the material 
        provided pursuant to subparagraph (A) to summarize the latest 
        annual report shall--
                    ``(i) be written in a manner calculated to be 
                understood by the average plan participant; and
                    ``(ii) 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.''.
    (l) Information Made Available to Participants, Beneficiaries, and 
Employers With Respect to Multiemployer Plans.--
            (1) In general.--Section 101 of the Employee Retirement 
        Income Security Act of 1974 (29 U.S.C. 1021) is amended--
                    (A) by redesignating subsection (j) as subsection 
                (k); and
                    (B) by inserting after subsection (i) the 
                following:
    ``(j) Multiemployer Plan Information Made Available on Request.--
            ``(1) In general.--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--
                    ``(A) 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
                    ``(B)(i) 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
                    ``(ii) if determined appropriate by the plan 
                sponsor, a quarterly summary of the information 
                contained in such reports.
            ``(2) Compliance.--Information required to be provided 
        under paragraph (1)--
                    ``(A) 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;
                    ``(B) 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
                    ``(C) 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.
            ``(3) Limitations.--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.''.
            (2) Enforcement.--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 ``section 302(b)(7)(F)(iv)'' and inserting 
        ``subsection (j) of section 101, and 302(b)(7)(F)(iv)''.
            (3) Regulations.--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.
    (m) Notice of Potential Withdrawal Liability to Multiemployer 
Plans.--
            (1) In general.--Section 101 of such Act (as amended by 
        this section) is amended--
                    (A) by redesignating subsection (k) as subsection 
                (l); and
                    (B) by inserting after subsection (j) the following 
                new subsection:
    ``(k) Notice of Potential Withdrawal Liability.--
            ``(1) In general.--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--
                    ``(A) 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
                    ``(B) 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.
            ``(2) Compliance.--Any notice required to be provided under 
        paragraph (1)--
                    ``(A) 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
                    ``(B) 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.
            ``(3) Limitations.--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.''.
            (2) Enforcement.--Section 502(c)(4) of such Act (29 U.S.C. 
        1132(c)(4)) (as amended by paragraph (1)) is further amended by 
        striking ``subsections (j)'' and inserting ``subsections (j) 
        and (k)''.
    (n) Model Form.--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.
    (o) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after December 31, 2006.

                    TITLE III--DEDUCTION LIMITATIONS

SEC. 301. INCREASE IN DEDUCTION LIMITS.

    (a) Increase in Deduction Limit for Multiemployer Plans.--Section 
404(a)(1)(D) of the Internal Revenue Code of 1986 is amended to read as 
follows:
                    ``(D) Amount determined on basis of unfunded 
                current liability.--
                            ``(i) In general.--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.
                            ``(ii) Unfunded current liability.--For 
                        purposes of clause (i), the term `unfunded 
                        current liability' means the excess (if any) 
                        of--
                                    ``(I) 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
                                    ``(II) the value of the plan's 
                                assets determined under section 
                                302B(c)(2) of such Act.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to contributions for taxable years beginning after 2006.

SEC. 302. UPDATING DEDUCTION RULES FOR COMBINATION OF PLANS.

    (a) In General.--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:
                            ``(iii) Limitations.--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.
                            ``(iv) Multiemployer plans.--Contributions 
                        to a multiemployer pension plan shall not be 
                        taken into account in applying the requirements 
                        of subparagraph (A).''.
    (b) Conforming Amendment.--Subparagraph (A) of section 4972(c)(6) 
of such Code (relating to nondeductible contributions) is amended to 
read as follows:
                    ``(A) 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''.
    (c) Effective Date.--The amendments made by this section shall 
apply to contributions for taxable years beginning after December 31, 
2006.
                                 <all>
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