294 
(A) in subparagraph (B)(i), by 
striking ‘‘funded current liability per-
centage 
(as 
defined 
in 
section 
412(l)(8))’’ and inserting ‘‘funding tar-
get attainment percentage (as defined 
in section 430(d)(2))’’, 
(B) in subparagraph (B)(iii), by 
striking ‘‘subsection 412(c)(8)’’ and in-
serting ‘‘section 412(d)(2)’’, and 
(C) in subparagraph (D), by strik-
ing ‘‘section 412(c)(11) (without re-
gard to subparagraph (B) thereof)’’ 
and inserting ‘‘section 412(b) (without 
regard to paragraph (2) thereof)’’. 
(b) VESTING RULES.—Section 411 of such 
Code is amended— 
(1) by striking ‘‘section 412(c)(8)’’ in 
subsection (a)(3)(C) and inserting ‘‘sec-
tion 412(d)(2)’’, 
(2) in subsection (b)(1)(F)— 
(A) by striking ‘‘paragraphs (2) 
and (3) of section 412(i)’’ in clause (ii) 
and inserting ‘‘subparagraphs (B) and 
(C) of section 412(e)(3)’’, and
295 
(B) by striking ‘‘paragraphs (4), 
(5), and (6) of section 412(i)’’ and in-
serting ‘‘subparagraphs (D), (E), and 
(F) of section 412(e)(3)’’, and 
(3) by striking ‘‘section 412(c)(8)’’ in 
subsection (d)(6)(A) and inserting ‘‘sec-
tion 412(d)(2)’’. 
(c) 
MERGERS
AND
CONSOLIDATIONS
OF 
PLANS.—Subclause (I) of section 414(l)(2)(B)(i) 
of such Code is amended to read as follows: 
‘‘(I) 
the 
amount 
deter-
mined 
under 
section 
431(c)(6)(A)(i) in the case of a 
multiemployer plan (and the 
sum of the target liability 
amount and target normal 
cost determined under section 
430 in the case of any other 
plan), over’’. 
(d) TRANSFER OF EXCESS PENSION ASSETS 
TO RETIREE HEALTH ACCOUNTS.— 
(1) Section 420(e)(2) of such Code is 
amended to read as follows:
296 
‘‘(2) 
EXCESS
PENSION
ASSETS.—The 
term ‘excess pension assets’ means the ex-
cess (if any) of— 
‘‘(A) the lesser of— 
‘‘(i) the fair market value of 
the plan’s assets (reduced by the 
pre-funding balance and the fund-
ing standard carryover balance, 
as 
determined 
under 
section 
430(f)), or 
‘‘(ii) the value of plan assets 
as 
determined 
under 
section 
430(g)(3) (reduced by the pre- 
funding balance and the funding 
standard carryover balance, as 
determined under section 430(f)), 
over 
‘‘(B) 125 percent of the sum of the 
target liability amount and the target 
normal cost determined under sec-
tion 430 for such plan year.’’. 
(2) Section 420(e)(4) of such Code is 
amended to read as follows: 
‘‘(4) COORDINATION WITH SECTION 430.— 
In the case of a qualified transfer, any as-
297 
sets so transferred shall not, for purposes 
of this section, be treated as assets in the 
plan.’’. 
(e) EXCISE TAXES.— 
(1) IN GENERAL.—Subsections (a) and 
(b) of section 4971 of such Code are 
amended to read as follows: 
‘‘(a) INITIAL TAX.—If at any time during 
any taxable year an employer maintains a 
plan to which section 412 applies, there is 
hereby imposed for the taxable year a tax 
equal to— 
‘‘(1) in the case of a defined benefit 
plan which is not a multiemployer plan, 
10 percent of the aggregate unpaid min-
imum required contributions for all plan 
years remaining unpaid as of the end of 
any plan year ending with or within the 
taxable year, and 
‘‘(2) in the case of a multiemployer 
plan, 5 percent of the accumulated fund-
ing deficiency determined under section 
431 as of the end of any plan year ending 
with or within the taxable year. 
‘‘(b) ADDITIONAL TAX.—If—